A marketing budget outlines all the money a business intends to spend on marketing-related projects over the quarter or year. Marketing budgets can include expenses such as paid advertising, sponsored web content, new marketing staff, a registered blog domain, and marketing automation software.

marketing budget points

1. Determine Your Total Marketing Budget

Your buyer’s journey is the actions your consumers take as they’ journey’ from prospect to returning customer. Understanding your buyer’s journey enables you to experience how your audience communicates with your marketing and where to set your aims and budget to reach your consumers better.

Ask yourself these questions as you define your buyer’s journey:

  • How do your leads and customers typically find your products?
  • What do they need to know before they invest?
  • How many website visits do you view per month?
  • How many leads are you producing per month, and how many of these convert to paying customers?
  • What is the cost of generating new leads and then converting them to customers?
  • What’s the average value/revenue of each lead?

2. Create a List of Platforms You’ll Use for Marketing

Marketing is flowing with add-ons, upsells, and “premium” versions. One of the best ways to evaluate what’s nice to have versus what’s important is to prepare all of your expenses.

By maintaining tabs on wherever your budget is being allotted, and cross-checking that spending with the returns you’re getting, it will be much easier to figure out what should keep getting budget and what should get kicked out of the budget.

One of the most significant advantages of ADOHM is that it is an omnichannel marketing platform which helps you run ads on social, search, display simultaneously.

3. Estimate the Cost and Potential ROI for Each Platform

When you start using ADOHM and run your marketing campaigns, its AI algorithms help divide the budget between the platforms that you have chosen to run ads on. Once the ads are active, it helps optimise the budgets between the platforms based on the tractions that the platform gets. A channel that gets fewer tractions in terms of leads, clicks or impressions then the budget for that channel is reduced and moved to the other.

I’m advocating for an “always spend smart” approach. The idea is to guide your thinking and to help ensure that you haven’t overlooked any hidden costs.

4. Evaluate Your Current Strategy to See What’s Already Working

When you put in a certain amount of money into a particular area, you’ll want to decide if your budgeting supported you or harm you as you plan out proposed budgets. The best way to do the evaluation is by estimating ROI — or return on investment.

If the money you spend on one item results in your company making more in return, you may want to increase the budget in the next year.

5. Allocate Your Budget

What you spend and wherever you spend it will depend on what you’re trying to achieve.

When you are starting to create your marketing budget, make sure you’re only using money on the things required by your current marketing objectives, i.e. goals set based on your audience and their route from prospect to customer. These could include:

  • Display ads to promote a new product you’re launching this year.
  • Sponsored social media posts to generate followers on your new Facebook page.
  • Paid search engine ads to drive traffic (and purchases) to a specific product page.

Click here to know how much should brands actually spend on digital advertising in the coming times.