New year, same dilemma: Play it safe and risk stagnation, or chase new marketing channels and risk wasting money? The 70-20-10 marketing rule has long promised a way to do both without losing sleep. But can a formula from the pre-TikTok era still hold up in 2026?
In this post, we’ll break down what the 70-20-10 model does and how you can adapt it for real-world marketing budget allocation today.
What is the 70-20-10 Marketing Budget?
The 70-20-10 marketing rule is a strategic guideline that divides your investment into three buckets: proven strategies, emerging opportunities, and experimental innovation. Originally adapted from learning and development research (and famously used by brands like Coca-Cola as "NOW/NEXT/NEW"), it provides a structured way to manage risk.
70% for Proven Performance (NOW)
This majority slice funds the channels and tactics you already trust, with clear benchmarks and predictable outcomes. You know the audience behavior, and the creative approach is already tested.
Examples: Paid search that consistently converts, SEO campaigns that drive qualified traffic, or email marketing that brings leads back into the funnel.
20% for Growth-Ready Opportunities (NEXT)
This portion supports channels that show promise but need more investment to scale. They work, just not at full efficiency yet. These are lower-risk opportunities that could potentially migrate into your core 70%.
Examples: A short-form video strategy that is driving engagement but not sales yet, or programmatic advertising you are testing across a new audience segment.
10% for Controlled Experimentation (NEW)
The 10% bucket reserves resources for concepts that are completely untested. The key here is that failure is acceptable because the risk is capped. If an experiment works, it moves to the 20% bucket. If it fails, you haven't jeopardized your baseline revenue.
Examples: Testing AI-powered marketing tools, AR filters, or entirely new social platforms.
Why the 70-20-10 Framework Became a Go-To Model
The popularity of the 70-20-10 marketing strategy stemmed from its ability to solve several practical problems marketers were struggling with simultaneously.
It reduced risk without killing growth.
By keeping most of the marketing budget in proven channels, teams could protect baseline performance while still testing new ideas. This made the framework especially attractive to leadership teams that wanted innovation without financial surprises.
It made experimentation intentional
Instead of treating testing as something that only happened when there was leftover budget, the model forced teams to plan for learning. The 20% allowed promising ideas to grow, while the 10% gave experimentation a clear, approved space.
It simplified internal decision-making
When new trends or platforms appeared, teams no longer debated whether to try them at all. The conversation instead shifted to which buckets (core/growth/test) these new platforms belonged. That clarity reduced friction and sped up budget decisions.
It created a shared language across teams
Marketing, finance, and leadership could all discuss budget allocation using the same structure. This alignment helped move organizations away from reactive spending and toward more deliberate marketing budget planning.
Can the 70-20-10 Marketing Rule Work in 2026?
Short answer: Yes, but only if it’s treated as a flexible planning framework, not a fixed formula.
When applied rigidly, the model struggles to keep up with how quickly channels evolve today. Platforms can move from experimental to essential in months instead of years. Waiting for an annual budget cycle to shift spend from the 10% bucket to the 70% bucket could mean missing the most profitable window.
There’s also the “proven channel” dilemma. Many brands continue funding legacy channels simply because they’ve always performed well. Paid search or display may maintain their 70% share even as efficiency declines. At that point, the framework stops protecting performance and starts protecting habit.
For startups and fast-growth businesses, limited historical data makes it hard to define what’s truly “proven.” Constraining learning to just 10% can slow discovery and delay traction. We explore how businesses of different sizes should approach this in our blog post: The Difference in Marketing Strategies Between Small & Big Businesses.
Another issue is cultural. When experimentation is tightly capped, teams become cautious and risk-taking fades. Over time, the strategy becomes efficient but predictable. And predictable rarely earns attention.
That’s why, in 2026, the 70-20-10 marketing budget works best as a starting structure. It helps teams think clearly about certainty, growth, and learning. Modern use requires adaptation:
- Flexible ratios: Startups may need a 60/30/10 or even a 50/25/25 split to accelerate learning.
- Quarterly reallocation: High-performing teams review budget buckets every 90 days, not once a year.
- Context awareness: A B2B company with long sales cycles will define “proven” very differently from a consumer brand running short-term campaigns.
So yes, the rule still applies. It just needs judgment layered on top, and the discipline to let performance -not habit- drive allocation.
How to Build a Smarter Marketing Budget Using 70-20-10 as a Base
1. Align with Your Business Goals
If growth is the goal, your 20% and 10% buckets may need to be larger to uncover new acquisition channels faster, since growth requires learning. If profitability is the goal, doubling down on the 70% efficiency bucket makes more sense because these channels already deliver predictable returns and lower acquisition costs. In other words, profitability favors certainty, while growth rewards discovery.
2. Review Historical Performance
Analyze past ROI by channel. This factual foundation prevents you from funding legacy tactics out of habit. Identify which investments delivered results and which consumed resources without return. This data defines your initial "70%" bucket.
3. Define SMART Objectives
Transform general aspirations into specific targets. Instead of "increase leads," go for "generate 500 qualified leads from the healthcare sector." This level of specificity helps you assess whether the standard 70-20-10 marketing split gives you enough room to hit the target, or whether you need to allocate more budget toward growth and experimentation to reach it.
For examples of how we apply flexible, data-driven budget allocations for our clients, check out our Digital Marketing Portfolio.
4. Determine Your Total Budget
You can set your total marketing budget using a few common methods:
- Percentage of revenue: Allocating 5-12% of projected revenue is common for established businesses. High-growth or venture-backed companies may invest more.
- Goal-based (objective-and-task): Calculating the cost of the specific activities required to hit your SMART goals. This is usually the most strategic approach.
- Competitor-based benchmarking: Using industry benchmarks to ensure you are not dramatically underinvesting. This should inform decisions, not dictate them.
5. Structure by Category
Once you have the total figure, break it down by expense category before applying the 70-20-10 rule to prevent overfunding channels while underfunding the resources needed to execute them properly. Common categories include:
- Paid Media: Advertising spend.
- Content Creation: Production costs for blogs, videos, and graphics.
- MarTech: Subscriptions for automation and analytics tools.
- Personnel: Salaries and agency fees.
For a deeper look at what services you might need to budget for, read our guide on Top Services a Digital Marketing Agency Can Offer Your Brand.
6. Allocate and Diversify
Now, apply the 70-20-10 marketing budget logic:
- 70% (Core): Fund your high-performing paid search and email automation.
- 20% (Scale): Pour fuel on that influencer campaign or content series that started showing promise last quarter.
- 10% (Test): Set aside funds for wild cards. Maybe it’s a new AI tool or a partnership with a niche creator.
7. Build in Flexibility
Static annual budgets rarely survive contact with market reality. Set aside a "flexible reserve" (roughly 5-10% of the total budget) that isn't locked into any specific channel. This allows you to respond to sudden cost spikes or unexpected viral moments without breaking the bank.
Common Budgeting Mistakes Brands Still Make
Treating last year’s budget as a strict rule
Just because a channel performed well last year doesn’t mean it automatically deserves 70% of your spend again. Review the data fresh every time.
Chasing new platforms without guardrails
Jumping on every trending channel is tempting. But without a clear experimental plan or KPIs, the 10% risk bucket can easily become a black hole for spend. Define what "success" looks like before you launch the test.
Measuring spend instead of outcomes
Spending alone doesn’t show whether marketing is creating value. A channel can consume a large budget and still deliver weak returns. Measuring profit, ROI, or conversions reveals whether the money is actually working, not just being deployed.
Locking percentages too rigidly
Sticking strictly to 70-20-10 prevents channels from moving between buckets. This slows down learning. If a "10%" experiment works, graduate it to the "20%" or "70%" bucket immediately.
A Smarter Way to Use the 70-20-10 Marketing Rule
The 70-20-10 marketing framework is valuable, but it is not a law of physics.
Modern marketing budget planning success comes from flexibility, data-driven adjustments, and clear business goals. Treat the rule as a starting point, but always let performance guide your final decision.
Ready to build a marketing budget that supports growth without unnecessary risk?
Contact Road9 Media to plan a strategy grounded in data, clarity, and real-world execution.
