All managers at leading businesses recognize that the marketing budget is not just an expense but an important investment. However, not everyone knows how to intelligently allocate budget for marketing plans. So how do you ensure that your investment in a marketing plan will pay off? Join Optimal FB in following the article below to understand how to set a reasonable budget for a marketing campaign.
What is the budget for a marketing campaign?
The overall marketing investment budget is often considered a piece of cake, an important part of each business’s strategy. However, unlike a family party, where everyone participates and has fun, investing does not always bring immediate joy and satisfaction. The manager’s role is to ensure that the business’s marketing activities are most effective at a reasonable cost, and bring the highest possible profit. Business owners need to have the skills to intelligently allocate their marketing budget to optimize their ROI. This requires careful consideration and a solid understanding of your business goals and target audience.
How much budget should be spent on a Marketing campaign?
The level of investment required for marketing often depends on many factors, including the business’s field of operation and specific business goals. However, a general rule of thumb is to spend about 10% of the total budget on marketing, based on estimates of increased revenue if the marketing strategy is successfully implemented. Newly established businesses often need to invest heavily in marketing to quickly expand their scale, with spending ranging from 12 to 20% of total revenue. Meanwhile, companies that are growing and want to boost profits typically spend about 8 to 12 percent on marketing.
Data from CMO Survey shows that, on average, the overall marketing budget accounts for about 11.1% of a business’s total budget. For B2B businesses, marketing budgets are usually lower, accounting for about 9.2% for product marketing and 8.9% for service marketing. If calculated based on the total revenue of the business, the cost of marketing B2B products is 6.3%, and for services is 6.9%.
How to set a reasonable budget for a marketing campaign?
The first important element in B2B marketing is strategy. To drive growth, every B2B business needs to start with a comprehensive digital marketing plan. Only with a clear plan can managers allocate budgets intelligently. A business’s marketing plan determines how to allocate budget to achieve goals and measure results.
Business electronic sales pages are where investment is needed
The sales website of a B2B business is considered an important marketing channel. Every potential customer can visit your sales website accidentally or intentionally. Therefore, building an impressive website is very important. The website needs to provide useful information to customers and convert their interest into purchasing actions.
Increase corporate brand recognition
A strong brand is the main factor that helps businesses stand out in the wave of competition. Branding is an effective marketing strategy that helps your business stand out from the competition. At the same time, branding also helps a business’s products and services become known to many people. A carelessly built, inconsistent brand can cause a decline in sales and a waste of overall marketing investment budget.
Optimize campaigns to fit sales cycles
Each customer has unique consumption habits, preferences, and needs. To meet these characteristics, marketing activities must play an important role in understanding and capturing customer psychology. Providing appropriate products and services to customer groups is a key factor in the success of a marketing strategy. Marketing and sales departments need to work closely together to optimize costs and resources while ensuring that budgets are appropriately allocated to the overall marketing goals of the business. The alignment between marketing and sales helps create a strong and effective operating system, from reaching customers to converting them into buyers.
Invest in advertising to increase attention to the product
Before starting to sell products, a business needs to attract attention from customers. Advertising strategies and communication channels allow businesses to promote their products/services and brands to potential customers. The advertising content must be impressive, with clear messages and images, helping B2B businesses impress potential customers and convert them into new or existing customers.
Create events and meetings
Exhibitions and product introduction events account for up to 40% of the consumer budget for the overall marketing strategy at businesses. In fact, the effectiveness of events and exhibitions is quite good, so allocating a large budget to this form of marketing is not difficult to understand. However, businesses also need to pay attention to building events methodically to avoid wasting budget.
Use Digital Marketing to develop campaigns
Digital marketing is considered the best solution for B2B businesses to reach customers. According to Deloitte’s CMO survey, businesses are gradually shifting their investment towards digital marketing channels, with budgets increasing from 44% to 54% in the coming years. However, in reality, there are very few B2B businesses that focus on Digital marketing. In their overall marketing plan, businesses need to pay more attention and invest in Digital marketing.
In the article on Optimal FB, we have listed for you the most accurate and specific information. We hope that the content we have shared can help everyone learn about the budget they need to pay for a Marketing campaign and take steps to appropriately allocate spending for their campaigns.
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Frequently asked questions
Marketing budget is an important part of every business’s business development strategy. The percentage of marketing budget allocated often depends on many factors such as industry, business size, business goals, and target market. However, typically, businesses spend 5% to 12% of their total annual revenue on their marketing budget. For some emerging industries or businesses, this ratio may be higher, while for traditional industries and large businesses, the ratio is often lower. Deciding on the percentage of marketing budget requires careful consideration to ensure effectiveness and sustainability in driving sales and business growth.
The marketing budget template is an indispensable part of every business plan. It is a strategic management document that helps businesses identify and manage financial resources for marketing and advertising activities. A marketing budget template typically includes items such as advertising costs, online marketing, marketing events, market research costs, and employee training costs. In this way, the marketing budget template helps businesses have an overview of budget allocation, thereby optimizing marketing strategies and ensuring effectiveness in achieving business goals.
