28 Oct Planning an Advertising Budget for Approval
Creating an advertising budget involves a variety of moving parts. That’s why it can be difficult to create a plan that gets approved by all departments. Because there are a number of different media vehicles to consider, many businesses can get totally overwhelmed by the idea of creating a budget that not only best supports their company, but that best utilizes the available marketing options.
In order to create a budget that is more likely to be approved, businesses should include the following factors in their planning: money allocated for the advertising budget, key messages to portray, preferred marketing platforms, and marketing or revenue goals for the year.
Calculate What to Allocate for Your Advertising Budget
Though there is no one universal business budget formula, there are ways to approximate how much money to allocate for your marketing efforts next year. Studies have shown that new businesses need to allocate about 12-20% of their gross or projected income to marketing, while established businesses need to allocate about 6-12%.
Why the difference? New companies must allot extra funds towards their marketing efforts because they need to capture new market share and develop brand recognition, both things that established businesses have already done. Businesses that have existed over 5 years often already have a steady market share and customer base.
Understanding this will help your business determine an idea of what you can comfortably allocate towards marketing initiatives. Plus, providing a number that your business will view as reasonable will get you one step closer to approval.
Key Messages to Portray
Deciding what messages you want to portray in your advertising can also help you get a better understanding of what type of media to use as well as what would work best for your budget. Creating well-branded content can help increase ROI. Making a memorable impression on consumers can not only create a positive reputation for your company but also make prospects more likely to choose your products or services.
So – what message do you want to portray to the public? The right branding message can help increase your business’s value by giving you more leverage in the industry. Marking your business as an authority in the field will build trust for potential consumers and elevate your status. This will benefit you both financially and with brand recognition in the long run.
Preferred Marketing Platforms to Fit Your Advertising Budget
There are two kinds of marketing avenues to consider when crafting your budget: traditional and digital marketing. Both of these have a variety of different medias within them. However, some types of marketing work better than others for specific companies. Traditional campaigns typically run higher in cost than digital initiatives, but they offer benefits not found in the digital sphere. Traditional marketing typically has a farther reach and can appeal to a broader audience than digital advertisements.
Digital marketing, on the other hand, come with low minimums. This makes it a better option for smaller businesses or companies with a tight budget. Digital advertising also allows more control over targeting options. This means that you are not spending money on people who are unlikely to convert, meaning smart money spending. Most successful plans utilize a combination of methods from these two marketing avenues to optimize their budgets.
Goals for the Year
Creating goals for the year can help you better define your budget as well. By identifying what your brand wants to accomplish, you can better understand how to best spend your budget. For example, some marketing avenues are better at increasing brand awareness, while others are better at driving sales. Is your goal for the year to become better known within your sector or to increase in-store visits? Studies show that marketers who set clear goals for the year were 376% more likely to report success than those who didn’t.
If your marketing goals are set for the year and you are ready to put your marketing budget to use, contact the experts at Media Venue. We have experience in both traditional and digital marketing and can formulate a marketing plan to help you best utilize your budget. We use our vast knowledge and years of experience to develop a media plan to help deliver your business to success. Enhance your marketing investment with Media Venue!
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About Our Blogger
As Media Venue’s social media manager, Michelle Dunaway has her finger on the pulse of the constantly-evolving social landscape. Her extensive background in both creative and technical writing coupled with her experience in the marketing world fuel a dedicated interest in keeping up with industry trends. Researching and writing about best practices in digital marketing allows her to utilize these practices to serve her clients.