How to Break Down Your 2017 Marketing Budget
It’s not quite an age old question yet (give it another hundred years), but it’s important nonetheless: How should I design my business’ marketing budget?
When it comes to the allocation of advertising dollars, there is no true and tested answer. This depends largely on the size and scale of your business. But here’s the honest truth: no matter if your advertising budget is $10, $10,000, or $1 million dollars, all businesses must methodologically determine how much you want to spend on advertising, and the extent to which you are willing to cut into the bottom line while investing in the growth of your business.
Once your marketing budget is determined, the next step is to break down and compartmentalize this budget into a marketing expense plan. This will determine where and how marketing dollars should be allocated. You will have to strategically and tactically ask yourself: how much should I spend on social media? PR? Offline vs. online marketing? How much do I want to spend on my website? Can I afford to hire a website designer? Should I conduct market research in order to more fully understand the economic climate? How much money should I allocate towards this type of environmental scan?
A recent CMO survey created an approximate marketing expense plan by interviewing over one hundred top marketers in the US. According to the survey, 51.6% of interviewees included social media in their company’s marketing budget, while 49.5% included marketing analytics. Furthermore, 43.6% of marketers utilize market research within their advertising budgets. The full chart is included below, and can be used as a helpful guide when determining your own business’ expense plan.
Information and image source: CMO Survey Report: Highlights and Insights