On the right track: how to define and control your marketing budget?
Posted: Tue Dec 03, 2024 9:06 am
Any investment is made with the expectation of a return. Defining a marketing budget works the same way. Dividing and allocating the available funds correctly, according to the goals set, is the best way to exercise effective control over the budget.
In today's article, we will explore some of the difficulties faced by companies. encounter when defining their marketing budget and how this can be solved. Check it out!
Marketing goals and budget
The first step to correctly defining a company's marketing budget is to understand what the objectives and goals are. it hopes to achieve. Being aware of market trends and the possibilities for using technologies is essential to understanding what is possible.
To effectively define a budget, it is essential to understand what the project objectives are and what is expected. Certain objectives require a much larger investment than others, and it may be necessary to review the goals and rethink the availability of funds.
It is also essential to know your target audience. Knowing who you are communicating with helps you understand the means necessary to carry out this communication. Is your audience very present on social media? In this case, this is an important means of interaction to take into account when defining your marketing budget.
Metrics and KPIs
The objectives defined at the beginning of the planning are important for defining and controlling the marketing budget. But another equally important item is the way in which the performance vp engineering email lists of your strategies will be monitored.
In this regard, the best way to accomplish this task is to use metrics and the famous KPIs ( key performance indicators). Widely used in various areas of management . , this type of index is surprisingly still not very widespread in the marketing sector.
It is very common for companies to use historical series to project results. This strategy is correct, but it cannot be the only one. Indicators such as ROI (return on investment) should be constantly analyzed. Other interesting metrics to analyze are the following.
Customer Acquisition Cost (CAC): ratio between all expenses involving the marketing sector and the number of customers acquired in a given period of time.
Bounce Rate (or churn ): result of calculating the percentage of “lost” customers in a period of time — in digital marketing, the bounce rate is considered the number of users who did not interact with your website.
Average Ticket: this is the average amount spent by each customer of your company — essential for measuring sales and calculating the growth rate with the marketing strategies applied.
The marketing budget should be defined at the beginning of the planning process, but there is nothing to stop it from being readjusted or reallocated, thanks to the analysis of the metrics and indicators above. If a certain strategy works better than another, it becomes a good investment and should be prioritized over those with poor results.
Marketing and reduced budget
Contrary to what you may be thinking, it is possible to develop and implement good marketing strategies, even with a reduced budget. Logically, less available funds means less advertising reach.
This reduced budget requires a review of the objectives, goals and means of communication, which may have been previously drawn up. By defining the budget first, it is possible to analyze the possibilities for distributing funds and the strategies to be adopted.
It is not possible to perform miracles when it comes to marketing, but with good planning, results – even if smaller – can come over time.
Marketing Budget Mistakes
There are many mistakes that can cause the marketing budget to not be sufficient to achieve the objectives previously set. And one of the main reasons is the lack of quantitative definition of goals.
A general objective, such as increasing sales, is of no help when it comes to defining a marketing budget. You need to think carefully about the growth rate you want to achieve. Are you aiming to sell 10% more in the next six months? Then it is essential to put these numbers on paper. Without quantified objectives and goals, it is impossible to have a minimum basis for defining a budget, whether it is short, medium or long term.
The lack of monitoring of indicators and the performance of marketing campaigns is also a major problem. Without this, it is impossible to have precise control over the effectiveness of campaigns and the return they are providing. Furthermore, the seasonality of the business and the market itself can affect marketing planning and budgeting. Therefore, it is essential to have full control over the indicators.
Hiring a marketing agency
Due to the complexity that has taken over the media and marketing, for many companies, having in-house employees to manage these tasks may not bring the expected results. And that's where communications agencies come in.
The role of an agency in today's market is growing in complexity, as interactions between companies and the public are becoming more developed. Therefore, having the multidisciplinary expertise of a specialized agency can make all the difference, making the marketing budget better used and more effective. In addition, the company will have an expanded network of specialized professionals taking care of several of its activities, which makes any strategy much more functional.
Nowadays, agencies need to have a profile with more active management characteristics. The consultancy aspect that many still maintain is no longer sufficient to meet market demands. It is essential to know how to reconcile, for example, online and offline communication strategies, treating them with the importance they have and the complementary role they need to assume within any planning.
Does your company know how to properly manage its available marketing budget? Has planning been effective? Are the indicators and metrics showing progress or does your company need professional help? If this is your case, you can count on Partners! We are an integrated communications agency specialized in managing a wide range of companies throughout Brazil. Contact us now!
Discover our blog
How to be a communications professional sought after by the market?
Communication is changing at the speed of light. And given the digital boom we are experiencing today, everything suggests that these changes will become increasingly continuous.
The scenario is the same in the market. While many companies are betting on product and process innovation to survive, marketing and communication agencies are racing to meet so many trends.
In today's article, we will explore some of the difficulties faced by companies. encounter when defining their marketing budget and how this can be solved. Check it out!
Marketing goals and budget
The first step to correctly defining a company's marketing budget is to understand what the objectives and goals are. it hopes to achieve. Being aware of market trends and the possibilities for using technologies is essential to understanding what is possible.
To effectively define a budget, it is essential to understand what the project objectives are and what is expected. Certain objectives require a much larger investment than others, and it may be necessary to review the goals and rethink the availability of funds.
It is also essential to know your target audience. Knowing who you are communicating with helps you understand the means necessary to carry out this communication. Is your audience very present on social media? In this case, this is an important means of interaction to take into account when defining your marketing budget.
Metrics and KPIs
The objectives defined at the beginning of the planning are important for defining and controlling the marketing budget. But another equally important item is the way in which the performance vp engineering email lists of your strategies will be monitored.
In this regard, the best way to accomplish this task is to use metrics and the famous KPIs ( key performance indicators). Widely used in various areas of management . , this type of index is surprisingly still not very widespread in the marketing sector.
It is very common for companies to use historical series to project results. This strategy is correct, but it cannot be the only one. Indicators such as ROI (return on investment) should be constantly analyzed. Other interesting metrics to analyze are the following.
Customer Acquisition Cost (CAC): ratio between all expenses involving the marketing sector and the number of customers acquired in a given period of time.
Bounce Rate (or churn ): result of calculating the percentage of “lost” customers in a period of time — in digital marketing, the bounce rate is considered the number of users who did not interact with your website.
Average Ticket: this is the average amount spent by each customer of your company — essential for measuring sales and calculating the growth rate with the marketing strategies applied.
The marketing budget should be defined at the beginning of the planning process, but there is nothing to stop it from being readjusted or reallocated, thanks to the analysis of the metrics and indicators above. If a certain strategy works better than another, it becomes a good investment and should be prioritized over those with poor results.
Marketing and reduced budget
Contrary to what you may be thinking, it is possible to develop and implement good marketing strategies, even with a reduced budget. Logically, less available funds means less advertising reach.
This reduced budget requires a review of the objectives, goals and means of communication, which may have been previously drawn up. By defining the budget first, it is possible to analyze the possibilities for distributing funds and the strategies to be adopted.
It is not possible to perform miracles when it comes to marketing, but with good planning, results – even if smaller – can come over time.
Marketing Budget Mistakes
There are many mistakes that can cause the marketing budget to not be sufficient to achieve the objectives previously set. And one of the main reasons is the lack of quantitative definition of goals.
A general objective, such as increasing sales, is of no help when it comes to defining a marketing budget. You need to think carefully about the growth rate you want to achieve. Are you aiming to sell 10% more in the next six months? Then it is essential to put these numbers on paper. Without quantified objectives and goals, it is impossible to have a minimum basis for defining a budget, whether it is short, medium or long term.
The lack of monitoring of indicators and the performance of marketing campaigns is also a major problem. Without this, it is impossible to have precise control over the effectiveness of campaigns and the return they are providing. Furthermore, the seasonality of the business and the market itself can affect marketing planning and budgeting. Therefore, it is essential to have full control over the indicators.
Hiring a marketing agency
Due to the complexity that has taken over the media and marketing, for many companies, having in-house employees to manage these tasks may not bring the expected results. And that's where communications agencies come in.
The role of an agency in today's market is growing in complexity, as interactions between companies and the public are becoming more developed. Therefore, having the multidisciplinary expertise of a specialized agency can make all the difference, making the marketing budget better used and more effective. In addition, the company will have an expanded network of specialized professionals taking care of several of its activities, which makes any strategy much more functional.
Nowadays, agencies need to have a profile with more active management characteristics. The consultancy aspect that many still maintain is no longer sufficient to meet market demands. It is essential to know how to reconcile, for example, online and offline communication strategies, treating them with the importance they have and the complementary role they need to assume within any planning.
Does your company know how to properly manage its available marketing budget? Has planning been effective? Are the indicators and metrics showing progress or does your company need professional help? If this is your case, you can count on Partners! We are an integrated communications agency specialized in managing a wide range of companies throughout Brazil. Contact us now!
Discover our blog
How to be a communications professional sought after by the market?
Communication is changing at the speed of light. And given the digital boom we are experiencing today, everything suggests that these changes will become increasingly continuous.
The scenario is the same in the market. While many companies are betting on product and process innovation to survive, marketing and communication agencies are racing to meet so many trends.