Managing Your Marketing Budget Effectively- Here’s How to Do It!

Are you an in-charge of a business marketing team and you need to manage your marketing budget?

You may have some knowledge about Social Media Marketing and Search Engine Optimization (SEO), but you are unfamiliar to create and maintain your budget.

Once you recognize the best & most effective ways to maintain your budget, it will become easy for you to manage your budget effectively. You should consider getting the SEO services from a skilled company in your area. 

Marketing budget

It is a strategy or plan in which you will learn how much you can spend and where you will distribute funds for different marketing policies. Marketing budgets include expenditures for strategies as well as additional costs such as outsourcing work or purchasing software. Note that, you can hire a competent digital marketer to achieve your goals and the expert will be handling the things properly.

Pre-planning of Budget

The process of budget planning can vary critically based upon your business; it may often take around two months. For creating a comprehensive marketing plan, there is the most effective way that you should communicate with your seniors about how much currency you can spend on business or marketing. Followings are the four distinctive models of budgeting:

  1. Revenue proportion: You will receive a proportion of the total revenue of a company, between 5%-20%.
  2. Based on Competition: You will receive how much currency you should have for every spending period and to match with your competitors.
  3. Bottom-up: You will utilize a goal-based approach to know how much currency you think you should have for the spending period.
  4. Top-down: Your superiors give you an amount without including your input, and you have to distribute it as best you can.

 Goal-setting and Researching

After hearing the spend targets from your seniors, don’t immediately start assigning that money to various activities or operations. It’s time to first start planning how you can utilize the money they are assigning for marketing.

Do Research

Before you’re starting your planning process, you should do some research about your company. You should know about:

  1. Your products
  2. The current state of your business
  3. Your competition
  4. Your market
  5. Your customer identities

Once you get all the information, you can choose more precisely how to maintain and manage your business marketing budget more effectively.

Your SMART goals

In this step, there is another effective way of planning your business marketing budget, to determine and  enlist your SMART goals for your business marketing team. Your goals should be:

  • Specific
  • Measurable
  •  Attainable
  • Realistic
  •  Timely

Here are a few other examples of SMART goals:

  1. Increase the quantity of content written per month.
  2. Generate more followers on Facebook for this period.
  3. Earn backlinks for every content that has been published.
  4. Engage traffic to the product page.

Try not to skip this step, your goals will become your supervisory principles throughout your breakdown of your business marketing budget.

Budget Planning

Now, you have selected your final budget amount and have all the goals, the next step of your marketing budget is, how to generate a marketing budget for the business?

List all budget items

This step involves a precise list of all specific activities, tasks that will support you in achieving your goals. A few examples are here:

  1. Hire new writers to enhance the quantity of content.
  2. Create new supported posts on Facebook during the whole spending period.
  3. Design new ads to grasp users to your product page.
  4. Produce ads for YouTube videos.

All the above activities should relate to smart goals for being actionable and precise, but now, there are specific tasks towards which you could allot money. They are many different features of marketing that they are covering, such as

    • Digital ad spends
    • Video production
    • Website development
    • Branding
    • Employee salaries
    • PR campaigns
    • Agency fees
    • Event hosting and promotion
  • Marketing automation tools

Calculate costs

Calculation of costs can be complicated as estimating the amount looks disparate for different activities and the price can differ greatly for different items. Do your best to judge how much you can spend on every activity. Here are  few tips that you can utilize:

  1. Start off easy: Starting by listing the prices that can easily figure out.
  2. Set boundaries: Some activities cost though much you will pay. For these products, you can list down the maximum and minimum amounts, you would be willing to devote to it.
  3. Use of past numbers:  Look at the past spending budget of your marketing team which will help you know how much you can spend on an activity.

 Cut down the list

This step involves cutting the whole list down. In this step, you should go through the whole list and find out your priorities.

Which of the following activities are essential? On which one you might be able to devote less money?

Keep in mind your all SMART goals in this step. Don’t cut any activity from the list that is not directly contributing to any of the goals that you have listed. Ultimately, you’ll become able to list down a detailed business marketing strategy that fits accurately in spend targets.

 Get the approval of the company

At this point, probably there will be some back-and-forth. Your seniors will evaluate your planning of budget for agreement and performance. They will see your total cost fulfill the spend targets they were assigned, and either the company will get benefit from different activities or not.

You may need to do some changes, based on their feedback. Sometimes, it will be approved and your final budget will be completed.

Management of your marketing budget

Congratulating you on finalizing your budget. It’s completely done, now finally you can initiate to accomplish your business marketing budget.

Generate your spreadsheets

Before initiating the spending period, you should create a detailed spreadsheet for trailing all from the breakdown of your marketing budget. Update the spreadsheets regularly, your thorough marketing plan does not work effectively, if you do not use this plan to keep spending on the business.

Retain track of your expenses

For keeping track of your monthly payments or any of the automated expenses such as contract renewals or subscriptions, generate a calendar with dates, timings, and reminders

Tag your items as salaried or voluntary

There is another impression to manage your budget, tag the items from your budget to know that either they have already been salaried or not.

Tagging them as paid or unpaid makes things easier for everyone to know which items are available versus which one is already set in store.

Keep testing

When you have found a plan that works good for the business, continuing utilizing it, but do not be a stick in it. Try to figure out new and diverse options to run your business more effectively and smoothly.

Analyze the performance

As it is difficult to maintain and manage a business budget, here is a thing that makes it easier to track your performance in marketing. You should track the key performance indicators (KPIs) like regular customer value, cost per principal, conversion rates, and bounce rates. This information helps in knowing the actual helpful budget items.

Ending of the Spending Period

At the end of this period, go through your Smart goals. Practice all the actions on which you have spent your money in your comprehensive marketing plan and by making sure that they all end up fulfilling all your goals. For this, you can get assistance from a digital marketing agency for satisfactory results.