You finally decided to invest in marketing services for your business, but you’re wondering if you can afford it. Without a marketing budget, you have no way of knowing how much you should spend. A successful company typically involves marketing a product or service, and your budget is an essential part of your marketing plan. This will outline the costs of how your business is going to achieve your marketing goals within a certain time frame. It’s important to consider all costs when budgeting for digital and print ads, emailing, website maintenance, branding, SEO, and so much more. Here are 4 steps on how to develop a successful marketing budget.
Set clear goals
When creating a marketing budget, it’s important to dive into your data and establish business goals for the next year. You can set goals that focus on gaining more leads and conversions, increasing brand awareness, organizational growth, and more. When developing goals, write them in the SMART format (specific, measurable, attainable, realistic, time-bound) to ensure accountability. For example: Increase your return on investment by 20% over the next year by publishing a brand new website. Setting a clear goal for your business will allow you to plan what needs to be done and what investment is needed.
Planning your 2022 budget ahead of time gives you more clarity. The long-term perspective prevents you from having to scrounge up additional marketing spend throughout the year and stop campaigns due to changes in funding. This is crucial when creating a more consistent and effective marketing strategy.
Know that marketing is an investment, not a cost
Sometimes, business owners get caught up in the expense of marketing and lose sight of the bigger picture. Your marketing budget should be treated as an investment and something that will bring a return over time. Every paid ad directly impacts your business, and they have the power to sell your product or service. Start focusing on marketing as an investment, and establish KPI’s (key performance indicators) so that you’re progressing the way your business had planned.
Revisit your plans
This is not a set it and forget it method. As you work through your marketing budget, it will become clearer when it comes to what’s working and what your business can afford. Successful businesses recognize the nature of marketing and revise their budget regularly. Assess your results and budget regularly to see if your expectations are aligned with your actual spending. Don’t lose focus, revisit your plans, and measure your progress.
I bet you’re wondering – “how much should I spend?” The answer depends on your brand, size of business, industry, and how much you want your business to grow. In the simplest terms, your marketing budget should be a percentage of your gross revenue goal.
We know that your business needs are fluid which is why with us, your marketing dollars are flexible. We take care of your investment by spending where it makes sense and not wasting time or dollars on marketing channels with a low return. We use dedicated team members and high-powered technology to watch your investment 24-hours a day. If you are ready to start your marketing plan for 2022, we can help. Contact us and schedule a consultation.