It’s November, so in marketing terms, it’s basically already 2024! It’s also that time of year when we drive full speed ahead into planning our marketing budgets for the upcoming year. Do you know what your marketing budget should look like? Several factors go into creating a high-performing marketing budget that will set you up for success.
A lot of clients ask us things like:
- What should my total marketing budget be?
- How much should I spend on digital marketing?
- What should my ad spend be?
- Do I need more staff or an agency?
- What’s my MSRP?
OK, you caught us. We made that last one up.
MSRP in this instance stands for Marketing Spend Revenue Plan. i.e. BUDGET!!
Here’s a step-by-step roadmap to help you set your marketing budget for 2024.
Know your limits, and when to break them:
First things first, you’ve got to figure out how much revenue you’re bringing in. Take a deep dive into your financials and calculate your total revenue. This will be your main driver when allocating your overall budget.
Secondly, know your crew —whether agency, in-house, or a combination. Consider what skills and specialties they have to efficiently action your marketing strategies and how much does that experience cost you. Alternatively, consider how much lack-of-experience will cost you in wasted marketing spend.
What business gear are you in?
The stage of your business can heavily influence your marketing budget. Are you a startup trying to make your mark or an established business looking to level up? Are you dominating your current market and looking to expand into new markets? Studies show B2B budgets ranging from 5% to 15% of revenue, and B2C up to 25%. Startups may aim for the lower end, while thriving companies can put the pedal to the metal.
Average Marketing Spend by Industry (2023)
What’s your destination?
What do you want to achieve with your marketing? More leads? Increased website traffic? Greater brand awareness? Lower customer acquisition costs? Be crystal clear about your objectives – they’ll shape your budget allocation and strategy.
Use your marketing fuel where it counts:
Now, here’s where the magic happens. Evaluate how much of your existing revenue comes from online sources and don’t undercut that budget and lose business. In fact, in a recession economy, you don’t want to open up the opportunity for competitors to gain your market share if they are willing to spend more.
Want to bump those sales numbers up? Invest in a conversion and SEO-optimized website. Then, invest wherever your audience hangs out. Use platforms like Facebook, Google Ads, Tiktok, Hulu, or LinkedIn ads based on your target demographics.
Monitor your GPS:
Your budget shouldn’t be paved in stone. Keep a watchful eye on your marketing efforts, analyze what’s working (and what isn’t), and be ready to pivot if necessary. It’s also a smart idea to have an “Emergency Fund” just in case of things like:
- Tech Issues/Hackers
- Staffing Changes
- Poor Product/Service Reviews – PR Issues
- New Competitors
Don’t be afraid to shift:
The marketing landscape and algorithm changes can be like a wild roller coaster. Always leave room for research, testing, and improvement! Trends and technologies are ever-evolving. Stay flexible and adapt your budget as new opportunities arise. Don’t be afraid to shift funds to test out the next big thing and stay on top of trends.
Budgeting doesn’t have to be all spreadsheets and numbers. Get creative with your marketing! Engage your audience in unique ways that don’t break the bank. Sometimes, the most memorable campaigns are the most unexpected ones. Ask us about our “Biscuits”.
Remember, setting your 2024 marketing budget is like planning a road trip. You’ve got your map, and you’ve heard from the experts, but the adventure is what makes it exciting!
So, go ahead, buckle up, and set your marketing budget for 2024 with confidence. You’ve got all the tools and expert advice to make it a road trip to remember. May the stoplight of success always be green! 🚦🚀💰