Setting-Marketing-Budget

5 Ways To Get The Most From Your 2019 Marketing Budget

I’m always surprised when I talk to clients that they don’t allocate a percentage of their business operating costs to their marketing budget. Various marketing activities are carried out on an ad-hoc approach and a great deal of pressure is put upon whatever element of the mix is deployed to gain results.

If Sales are down, the marketing budget gets scrapped – when in reality this should be the time to invest more heavily in marketing. BUT – not just any old marketing! The right type of marketing, that doesn’t cost your business the earth and has been carefully selected as the right approach for your industry.

First things first, how should you set a marketing budget for your business?

How to set a Marketing Budget

For companies that are hitting a 6 figure turnover, a general rule of thumb is:-

  • Objective: Maintain market position – Take a figure of 5% of total turnover/revenue
  • Objective: Gain greater market share – Take a figure of 10% of total turnover/revenue

These figures might shock you when you calculate them, but you should bear in mind that a Marketing budget should also be covering the cost for marketing staff, advertising, events, printing and software used for Marketing activities.

Please Note: Companies with less than a 6 figure turnover, should take a percentage of their NET revenue / profit and reflect on what their competitors might be spending. Yes – guesstimate! A competitor will rarely share this information with you.

So, now you have set your budget – how can you make sure you get the most from it? Here’s my top five tips.

Getting the Most from your 2019 Marketing Budget

  1. Track And Measure Your Results. With the dawn of online marketing – it has made it infinitely easier to measure marketing efforts, as offline marketing requires a more holistic approach. If you haven’t already, ensure Google analytics is installed on your website and begin to start recording results. If you are using social media, monitor and record results from Insights and analytics tools that are freely available to you.
  2. Spending Awareness. I’ve witnessed a business paying £500+VAT for one small advert (3” x 4”) and not batting an eyelid! I’ve seen companies who source ad space adding over £1,000 to the cost of one individual advert, and hundreds of pounds spent on pre-generated (and free) reports from Google Analytics and various black hat SEO work. I’ve also seen businesses use solicitors to submit product name trademarks costing them tens of thousands of pounds. So, are you aware of where your budget is being spent? Did you sign up to a service years ago and never cancelled the contract? Are you properly benchmarking suppliers before agreeing to a contract? I always say – treat your company money as if it’s your own. (This might be easier for those of us who run our own businesses).
  3. Goals, Goals, Goals. This isn’t like a New Years resolution to be ignored. This is going to be the drive and the focus for your business for the rest of the year. As you now have your budget you will be able to properly attribute budget to each goal and track / measure your results. IE: A sales goal for a new product or service. New business venture – Brand awareness. Hiring staff? Or perhaps you’re selling an end of line product. Commit this to paper and live by it.
  4. Targeted Marketing. Now you have your goals in place, who are you going to target to ensure you reach those goals? Many people inadvertently deploy a scattergun approach to marketing, hoping to sweep up anyone that might be interested in their product or service in the process. A cardinal sin. And, just because you’ve always done a flyer drop / advert at that time of year doesn’t mean you’re going to achieve the same results. Begin to create groups for your customers so you can easily target those with specific likes / interests with relevant products / services.
  5. Deploy the Right Marketing Mix. There are 9 main areas of the marketing mix and dependent on your industry you may want to incorporate various elements. These are:-
    • Website
    • Social Media
    • Direct Mail
    • Email Marketing
    • Print Advertising
    • Online advertising
    • Public Relations
    • Event Marketing
    • TV / Radio Advertising

The Godfather of marketing, Philip Kotler, predicted in 2016 that this year businesses would be spending around 35% of their total budgets on Online marketing efforts. This gives you a good benchmark of how to start attributing budget to marketing endeavours.

Online marketing is not as expensive as traditional marketing methods, so for the majority of businesses, this will greatly help you to get more from your budget.

Which marketing methods should you deploy?

I would advise most companies to invest in:-

  1. Website (Content Marketing & SEO)
  2. Social Media Marketing
  3. Email Marketing (especially automation)

Data from Demand Metric shows,

#Contentmarketing costs 62% less than outbound marketing & generates 3x as many leads

Each of these three key areas is underpinned by your website and a robust content marketing strategy.

I hope our blog encourages you to look at the marketing strategy for your business and will help you to get the most from your 2019 marketing budget.

However, if you’d like help shaping your marketing strategy for the year ahead and ensuring best possible allocation of your budget feel free to get in touch.

#MarketingBudget #MarketingStrategy

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