Tips To Get Your Marketing Budget In Line For Next Year
Now is the time to get your marketing budget set for next year as the year-end is rapidly approaching. As marketers, we know that our effectiveness is determined to some degree by the size of our budget. Of course, we try to offset it by the return we bring to the organization so it’s important to create and set a marketing budget that can accomplish all that you need.
Here are some tips to get started:
Peg your budget to a percentage of revenue – effective marketing budgets have a foothold in a percentage of revenue, yet most companies struggle with making this level of investment. By tying your budget to revenue, you can create a standard that will grow as the company grows.
Close your measurement gaps – demonstrate and show what your organization is getting out of marketing and what you will need to deliver ROI. Close any undefined gaps.
Figure out what performed above the line and below the line – prove what’s working and what may need to be improved. Prepare the reasons why you need more funding to further fuel those initiatives that were successful.
Find some wiggle to experiment and build some cushion for those unexpected items – most marketing departments run into some kind of surprise expense so having the flexibility to deal with the unexpected – or hopefully investment in new channels or technologies – will make you better prepared to handle shifts in your business.
Figure out who performed above the line and below the line – think about how you can keep the stars of your team rewarded at higher levels and look for changes at positions where you aren’t getting what you need and reinvest those dollars elsewhere.
Don’t skimp on training investments for your staff – make sure that you set aside money for training. It will keep your team up to speed and will also show a commitment to them and their craft, which will have returns well beyond the balance sheet.
In marketing, money matters and how much you have will impact what you can do. Fight the good fight early for your marketing budget and you will be on a path to success for the coming year.