High-Performance Digital Marketing Podcast | Episode How to Plan Your Marketing Budget Summary

Planning Your Marketing Budget: A Seven-Step Process

Welcome to this episode of our podcast, where we dive into the importance of planning a marketing budget and provide you with a comprehensive seven-step process to do just that. Whether you're a B2B or B2C company, understanding how to allocate your budget effectively is crucial for driving success in your marketing efforts.

Understanding the Numbers

Did you know that, on average, companies allocate 13.6% of their annual budget to marketing? And that the average percentage of revenue spent on marketing is 8.7%? These numbers provide a benchmark for you to consider as you plan your own marketing budget.

Setting Goals

The first step in planning your marketing budget is to set clear goals. This includes revenue goals and sub-goals that align with your overall business objectives. By defining your goals upfront, you can better allocate your budget to support these targets.

Analyzing Current Performance

Next, it's essential to analyze your current marketing performance. Look for low-hanging fruit and determine the cost per lead or sale for each marketing channel you're utilizing. This analysis will help you identify areas of improvement and make informed decisions about where to allocate your budget.

Conducting Competitor Analysis

Understanding your competitors' marketing strategies is crucial. Conduct a thorough competitor analysis to gain insights into the main marketing channels used in your industry and your competitors' priorities. This knowledge will help you refine your own marketing approach and allocate your budget strategically.

Determining Marketing Channel Priorities

Once you have a clear understanding of your goals and competitor landscape, it's time to determine your marketing channel priorities. This involves creating a mix of large flywheel channels for long-term growth and small flywheel channels for short-term wins. By diversifying your channels, you can maximize your marketing impact.

Assigning Budgets to Each Channel

Now that you have identified your marketing channel priorities, it's time to assign budgets to each channel. Consider the cost per lead or sale for each channel and the expected growth. This step ensures that your budget is allocated to the areas with the highest potential for success.

Reviewing and Adjusting Throughout the Year

Remember, your marketing budget is not set in stone. It's crucial to review and adjust your budget allocation throughout the year. This allows you to adapt to changes in business priorities and channel performance, ensuring that your budget remains effective and aligned with your goals.

Considering Agencies vs. In-House Resources

Finally, when planning your marketing budget, consider the use of agencies versus in-house resources. Agencies can provide flexibility and expertise that may be beneficial for certain aspects of your marketing strategy. Evaluate the pros and cons to make an informed decision.

By following this seven-step process, you can effectively plan your marketing budget, allocate resources to the areas most likely to succeed, and adapt as needed throughout the year. Don't underestimate the power of a well-planned budget in driving your marketing success!

Planning your marketing budget is a mammoth task.

But it doesn’t have to be stressful.

Here are our top tips for planning your marketing budget for the next year.

Watch this as a video instead: https://www.youtube.com/watch?v=UWj6Dob1Gtk

Get a FREE review of your website @ https://exposureninja.com/rpod/review/

Get the show notes @ https://exposureninja.com/podcast/292/

Download our eBook @ https://exposureninja.com/your-google-book/

You May Also Enjoy…

How To Market a Service-based Business: https://exposureninja.com/podcast/291/
These Mistakes KILL Conversion Rates: https://exposureninja.com/podcast/290/
How D uolingo Used TikTok to Increase Revenue 44% YoY: https://exposureninja.com/podcast/extra-024/