Alongside goals, tactics, and project timeline, the marketing budget is one of many important key components to ensuring a secure and stable marketing campaign. Surprisingly, many companies and marketing teams share a hidden struggle in projecting their promotional costs for their company. This includes any online, in-person, or traditional forms of design, promotion, social, advertising, and marketing communications additional to supporting fixed costs associated with pay and rental space. To strategically plan for your campaign, there are three marketing tips that can help calculate an accurate projection of the costs required to promote your product or service.
- Determine Your Revenue: Calculating your revenue will help establish financial accuracy while saving costs. As a marketer, it is your responsibility to justify every dollar spent on your project.
- Company Size: Consider how recognized your company is. Is your company 1 – 5 years old and recently introduced to the market or 5 years+ and well-established? By acknowledging your place and the relationships with consumers in the industry, you can measure how much marketing efforts your company should be taking.
- Budget Allocation: Depending on the evaluation of your company size, suggestions for budget allocations vary. The most basic percentage for marketing budget allocation is 7% to 15% of your revenue. For new companies, 10%-15% goes to their marketing budget from their revenue while well-established companies allocate 7%-10%.
These three recommendations will help your estimation be as precise as possible to calculate funds appropriately and efficiently. Further assessment of the competitive landscape, identification of your lead generator and its associated costs, diversity of investments, and employing good talent are supplementary considerations unique to each company. Ultimately, the best results can be achieved with accurate data, appropriate ranking, and proper application of budget allocation percentages. After following these guidelines and assessing other personal factors that apply to the company, your campaign, brand, and revenue should be positively impacted and strengthened.