Marketing Budget: How To Get The Best Value For 2021
When starting your own business, there’s a lot for you to keep track of and prepare for. It’s hard to know what the next steps are to ensuring your business succeeds, let alone strategizing, implementing and enforcing a marketing plan that works for you. So how do you get the best value out of your marketing budget?
First, let’s start by informing you on what a marketing budget is and then move onto what it can do for your business.
What Is A Marketing Budget?
A marketing budget is a tool used to help you accomplish your business goals. It is a way to document and keep track of how much your business plans to spend on marketing. It will record what you are spending over a certain time period (usually a year) and demonstrate which areas your money is allocated to within your marketing budget. It displays how much is going to things such as paid ads, hiring costs, online marketing tools, website maintenance and much more.
Setting up a budget can determine how much of your money is being spent, where your money is being spent, and how much return of investment (ROI) you are receiving. This will be important in ensuring your money is being spent in the correct places, so you can achieve your business goals without going under.
Define Your Business Strategy & Marketing Plan
It’s hard to create a marketing budget when you don’t have any business goals set up to achieve. It would be best to start by creating a business layout to help you know where your business is going. It will help you map out who your target audience is, product positioning, brand, and goals you want to reach.
Knowing this will help you understand where you need to start marketing. For example, wanting higher conversions or wanting more brand awareness will allow you to allocate your funds to the correct locations. Therefore, the marketing you’re paying for actually works for you in achieving this goal. Without these goals in place, you would be left floundering, adding money to areas that may not help you thrive where it counts.
Why Do I Need A Marketing Budget For My Business?
Helps You Stay On Track Financially
When you are developing a marketing strategy, you need to be sure you aren’t over or under spending, especially if you are a new or smaller business trying to gain more traction online. Staying on track and being financially responsible in your path to improving your ROI is crucial to succeeding.
Without an in-depth budget, you’ll most likely find yourself overspending and overcompensating where you don’t need to.
Allows You Prioritize Your Marketing Needs
A budget gives your business the opportunity to constantly evaluate and reevaluate the metrics of where you’re spending money. Your budget will help outline whether you should abandon specific strategies that aren’t up to par and not furthering your goals or add more money to the working strategies.
When checking your spending metrics, they should be tied to your key performance indicators. For example, if you set up a goal to promote your brand more, you can monitor website traffic, bounce rates and conversion rates to see how well your brand presence is doing.
If the indicators aren’t performing well and need more attention, it may be best to spend a little more to get the results you want. Look at your budget and see where you can shuffle funds to help improve SEO and get a higher ranking to increase page traffic. Or, get your web developers to do routine maintenance on your website to keep performance up, so bounce rates decrease, and the conversion rates increase.
“A budget gives your business the opportunity to constantly evaluate and reevaluate the metrics of where you’re spending money. Your budget will help outline whether you should abandon specific strategies that aren’t up to par.”
Focus On What’s Necessary & Ditch What Isn’t
Marketing tools can add up quickly, and with so many different options to choose from, it’s hard to know which ones are important and which ones you can do without. If you end up with too many, it’s best to consolidate them, so you aren’t overspending.
Creating a budget allows you to know what is necessary for your business and what you can discard. You can determine which tools are essential for your business because they make the marketing process more manageable, productive, and more efficient. But you’ll want to sift out options that are nice to have but aren’t necessary. This will save you money or allow you the opportunity to reallocate the funds elsewhere, where it will be more beneficial to your business’s success.
Helps You Plan Long Term
A budget will help you plan for the year ahead. The information you’ve collected from the previous year can help you see what is in store for your future.
“Your marketing budget Helps You Accomplish Your Goals & Grow Your Business”
Just say you decide your goal for the upcoming year is to increase sales by 25%. You may want to consider upgrading your website, buying more online ad space, or doing both. You will have to work these goals into the next budget to achieve them without overspending or drastically cutting too much from other areas that are also essential.
Now that you know how much creating a marketing budget can help you, you need to figure out how much you should spend. It is also important to note the options for marketing where you can allocate your budget.
Suggested Marketing Budget
It is suggested that for new companies starting out to allot 12-20% of gross revenue on marketing. You want to put more towards getting your business started on the right foot and making your brand known, so consumers know that you’re an option.
Once you are more established, only 6-12% will be necessary since you have some of the groundwork started, people have noticed you, you have a following, and now all you have to do is grow that following.
Remember that your marketing budget will fluctuate depending on many different factors. Things like company size, revenue, and industry will help determine these factors. On average, spending anywhere from 8 and 16% of total revenue will keep your marketing plan in working order, and we can help you keep track of what you are spending to keep your company running smoothly.
The areas in which you’ll want to look at marketing your business and online presence are listed below. You don’t have to use every stream of marketing, and some streams will work better with certain companies than others. So, make sure you do your research before jumping in.
Types Of Marketing That Can Benefit You!
Digital & Traditional Ads
Paid marketing options include digital ads hosted on websites, search engines, social media platforms, or traditional television commercials, flyers, mailouts, and billboards.
A person or team who helps to brand and market your business either in-house or outsourced via hiring a marketing agency like Ullaco Corp.
Marketing Management Tools
Resources used for marketing your brand and business, such as your website, social media, and content production.
Events & Other Branding Efforts
Marketing events like trade shows and other branding options such as promotional items, brochures, business cards, signs and samples can help you build a strong foundation for brand reputation.
Knowing what each type of marketing can do for your business and whether it will help you accomplish your goals is crucial. For help knowing which eggs to put in your basket, we can walk you through all the different marketing strategies. We will provide you with descriptions of how each category can be useful and which ones will help your business the most.
With these pointers, we can help you start to realize your company’s marketing potential. For help with your online marketing needs, contact us at Ullaco Corp today. We have the insights and team to be able to help you set up a budget with goals you can achieve.