What’s In Your Marketing Budget?
Developing a sound and solid marketing budget—or an estimated projection of costs required to advertise or promote a service— is crucial to the success of any business. Without a budget, you can run the risk of over-spending on certain marketing needs.
When creating a marketing budget, many businesses struggle with the first step: deciding what should and should not be included in the budget. Does your business want to focus on offline or online advertising (or both— this isn’t a zero-sum game)? Do you want to venture into the realm of native advertising (think Pinterest or Instagram ads), or do you want to run traditional newspaper, magazine, or direct mail campaigns? Should production costs be included in the budget, and if so, how much money should be allocated to graphic designers, printers, or photographers? Does your business want to create or re-vamp your website?
What’s more, a business must decide if they want to include marketing collateral in their budget, which includes brochures, flyers, car wraps, catalogs, and give-away items like T-shirts or pens.
As one can see, all of these factors must be taken into consideration when creating a budget.
After interviewing top marketers in the US, a recent CMO survey found that 51% of marketers include social media in their marketing budgets, while 49.5% include marketing analytics. According to the study, 43.6% of marketing budgets include overall marketing research.
A large percentage of marketers take labour costs into consideration when creating their marketing budgets (43.3%). Furthermore, 33.6% of those interviewed allocate money into employee training initiatives.
From this survey, we can gather that top US marketers include the following in their marketing budgets:
- Social media
- Marketing analytics
- Marketing research
- Marketing employees
- Marketing training
- Sales employees
- Other overhead costs
What follows is a more thorough breakdown of CMO’s results:
Image and information source: CMO Survey Report: Highlights and Insights