Finding the Right Balance – Retail vs. Digital Budget Allocation for Food & Beverage Brands
Tara Johnson is a marketing strategist with 10+ years of experience in digital strategy, content creation, and advertising. At Power Digital, she leads content planning, creating high-impact resources that boost visibility and drive results. Tara believes in no magic wands—just smart content and a passion for sustainable, authentic growth.
Power Digital is a full-service growth marketing agency helping brands accelerate their revenue with data, strategy, and execution. Known for our award-winning teams and nova technology, we bring clarity to complexity and build marketing that scales.
As consumer purchasing behaviors evolve and competition intensifies, food and beverage brands must adapt their marketing strategies to stay ahead. The key to success lies in aligning budget allocations with both retail and digital efforts to not only maintain but expand their market presence. According to experts at Power Digital, determining this balance isn’t a one-size-fits-all formula—it requires a tailored approach that considers distribution reach, business priorities, and marketing objectives.
Factors Influencing Budget Allocation
When it comes to budget allocation between retail and digital channels, it depends on the brand’s current distribution and revenue mix. At Power Digital, we emphasize the importance of analyzing where the greatest share of revenue is coming from in order to determine which types of marketing should be prioritized with your budget.
According to our experts, for food and beverage brands, direct-to-consumer (DTC) typically accounts for less than 2% of total revenue. Therefore, it wouldn’t make sense to allocate a higher concentration of dollars toward DTC when the majority of the business is happening in-store.
Budget Allocation by Sales Channel
Power Digital recommends aligning spend with sales performance and business goals. For food and beverage brands sold across multiple channels, the budget typically breaks down into the following categories:
Retail-First Brands: If in-store sales dominate, we suggest allocating:
- 70–80% to awareness and prospecting (building top-of-funnel interest)
- 20–30% to retargeting efforts
Digital-First or Omnichannel Brands: For brands with both a strong retail presence and growing e-commerce sales, the budget allocation might look like:
- 10% to awareness
- 60% to prospecting
- 25% to intent-based strategies
- 5% to retention (to keep paid retention low and let organic efforts do more of the heavy lifting)
The Importance of Measuring Cross-Channel Impact
Even when running digital campaigns, measuring the impact on in-store sales is essential. At Power Digital, we often refer to this as the “halo effect” of digital marketing, where online efforts drive in-store purchases. This requires brands to look beyond direct attribution models and evaluate overall business sales lift.
Next Steps
For food and beverage brands, budget allocation must be flexible, data-driven, and aligned with business objectives. By balancing spend between trade, shopper marketing, and digital channels—and measuring the cross-channel impact—brands can optimize their marketing investments and drive sustainable growth.
Ready to elevate your digital marketing strategy? Power Digital can help!
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Tara Johnson is a marketing strategist with 10+ years of experience in digital strategy, content creation, and advertising. At Power Digital, she leads content planning, creating high-impact resources that boost visibility and drive results. Tara believes in no magic wands—just smart content and a passion for sustainable, authentic growth.
