How to Set Marketing Budget for 2019
3 min read
2019 is here and going fast. We are almost finished with the first quarter of the new year.
For marketers, a new year means new marketing goals and new opportunities to expand your business. With new goals comes a new marketing budget plan.
And, some of the most common questions business owners and executives ask are:
Here are the important steps you must take when creating your marketing budget for 2019.
A marketing budget is a marketing plan in terms of costs. It is an estimated amount required to execute a marketing plan that sells products or services.
A marketing budget is a significant part of the marketing process. It includes all promotional costs like monthly rentals for marketing tools, running ad campaigns, creating content, paid promotions and hiring staff.
To develop a successful marketing plan, it’s crucial to analyze the results of your past marketing efforts. You need to know what was a success and what was a failure. Guesswork, instincts or gut feelings should not influence your decision when it comes to a budget.
Use information from Google Analytics, your email marketing data and other marketing automation reports to gather reliable data. Once you have actual numbers, you can see which sources contribute the highest percentage of total income through quality leads and conversions.
Then ask yourself two easy but extremely important questions:
If something worked great, try to find out why. And, if it didn’t, analyze what was lacking.
What are you expecting to achieve in 2019?
Identifying your goals will help you prioritize your marketing tactics.
Furthermore, analysis of the past can help you set short term and long term goals. For example, if you are a new firm trying to get more awareness in the industry, you may want to spend on paid advertising and strengthening your social media presence in 2019.
Or, if you are a stable business, you might be focused on continued growth in your existing market, launching a new product or better service offering.
You can customize your marketing efforts to what will have the most influence towards that goal.
While you may notice a faster return on a few marketing campaigns, such as PPC or print ads, what long-term investments do you want to make in the upcoming year? Here are some options:
You may not observe the profits of these efforts immediately but that mustn’t hinder their importance. Consider these types of investments for the upcoming year as you plan the complete budget.
Now it’s time to allocate budget amounts to the different channels, campaigns and other expenses that you will require for next year.
Think about monthly, quarterly and the annual spend. Don’t forget to include things like seasonality and past data trends as well.
This is a tough task. In the budgeting plan, you outline everything that you would like to include in your budget. But, sufficient funds are not always available to execute your entire idea.
Therefore, it’s imperative to prioritize which campaigns and techniques are going to be most valuable in the new year. Also, if the budget is insufficient, choose the technique that is most effective at driving leads and go from there.
You’ve identified your goals, your long-term investments, and your priorities to accomplish the plan. However, if you don’t have a documented plan, it is doubtful the plan will be a success.
Also, if you don’t have it documented, you don’t know how you may want to differ from it later in the year.
It may look like a tiresome and time-consuming task, but budgeting keeps things in check. Planning a budget and pushing yourself to watch your spending will help you realize how you’re distributing your time, reducing investments in unnecessary areas, and measuring the success of your marketing initiatives.