How to create and manage your marketing budgets
It can be difficult to get your marketing budget approved or increased. The most common challenge is convincing the marketing decision-makers that they need more budget when budgets are tight and current initiatives are not producing results. This blog post will provide you with some tips on solving this problem and increasing your marketing budget!
Do you have a set budget for paid advertising?
Yes. It’s important to set a budget for paid advertising because, if you don’t, it’s easy to go over budget. You should set targets for ROI and conversions, as well as a target spend amount per day or week in order to control your marketing spending without sacrificing results.
You can also use data to help convince the decision-makers that more budget is needed by demonstrating how much of the marketing budget has been spent on paid advertising thus far this month (or year). This shows them how many opportunities there are left before they run out of money!
Do you have a set budget for tools and outsourcing?
Yes. Having a budget for marketing tools is a must because they help generate data about what works or doesn’t in any given marketing campaign. Tools let you take charge by directing funds where it makes sense based on their performance, helping increase the return on investment (ROI). Tools will often pay for themselves by saving time and generating meaningful data.
By having a budget that you control for outsourcing, you know exactly how much you are investing in external resources, knowledge and expertise.
What’s your biggest challenge when it comes to acquiring more budget?
Proving your marketing campaign has truly delivered value is a major challenge for marketing teams.
This is where data comes in handy because it helps show the impact of your campaigns, increasing the likelihood that you will receive budget approvals and need less convincing from stakeholders.
There are three ways to increase a marketing budget: negotiate with stakeholders, offer data-backed evidence of ROI for every marketing dollar spent or make sure spending is aligned with business goals. Negotiating may be necessary when there’s an unmet expectation or goal but don’t push too hard unless you have additional compelling data points to provide as well! Just make sure what you’re asking for aligns with organisational goals before going into any meeting about budgets (or anything else)!
Data-backed evidence of ROI is always the best route. An example of this would be providing proof that your campaign increased revenue by five percent over a six-month period and then requesting ten times more than the original budget request – make it easy for the stakeholders or decision-makers to see the value.
How do you ask for more budget – both for initiatives that are working, or to try new initiatives?
If a campaign isn’t getting results you can ask for more budget to try new initiates by providing data points from previous campaigns and showing how your new initiative will be a better use of marketing dollars than what you’ve been doing.
If an initiative is working but needs more budget to scale the campaign – ask for it! Just make sure that when you’re requesting more budget for an existing initiative with success, you back up your request by providing proof of ROI (say through increased revenue) or CPA reductions.
What is your biggest tip for developing a marketing budget?
My biggest tip for developing a marketing budget is to make sure you have enough budget to try new initiatives, without having your marketing budget so tightly allocated that there’s no room for experimenting. Make sure you’re constantly testing new channels, campaigns, messages until one proves a winner – then scale up.
If you’ve been struggling to get your marketing budget approved or increased, it may be because the decision-makers in charge of approving budgets don’t understand what you need.
What are some ways you set your own marketing budget? Have any other suggestions for how to convince decision-makers that they need more money for their company’s digital strategy?