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Best Practices for an Efficient Marketing Budget Allocation

by Content Team | Last Updated: January 4, 2022

Most digital marketers are given specific targets and budgets for every campaign they need to create and launch. It’s unwise to set unlimited budget allocation as this muddles how you can measure the efficacy of campaigns. 

As such, prioritizing your marketing budget is critical, whether you are launching an extensive campaign with significant budget allocation or working within a tight budget. 

Budget allocation sets the pace and the practices your team needs to follow within the campaign, so company goals are met, especially in terms of leads and conversions. The success of every campaign is a precedent for the next, so you have to determine the right marketing channels, demographic, methods you’ll utilize within your campaign. 

This article is all about what you need to correctly set your marketing budget allocation. Here are five of the best practices for an efficient marketing budget allocation:

1. Define the Marketing Goals of Your Business

Your marketing budget will be maximized if you first determine the company’s marketing goals and the complex numbers of your marketing campaigns to achieve such goals.

For instance, you want to generate one million visitors to your website and grow a thousand email addresses email subscription base. You must provide a clear plan for achieving these goals, like the marketing touchpoints within your marketing funnel, target demographics, content direction, and projected leads and sales. These projections will help refine your marketing strategies and stay within the goals, as such, staying within your budget.

2. Set How Long Will Your Marketing Campaign Last

Set a specific time frame for your marketing campaign that is realistic and achievable. To determine the time frame, you need to know the time it takes to capture your audiences’ attention and the time you need to execute your campaigns.

Your marketing campaign should also be inclusive of different types of marketing activities. Different marketing methods each take a different amount of time and effort, so ensure that you factor processes to develop a realistic timetable.

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3. Know Your Target Audience

You can optimize your marketing budget if you know your target audience. For this reason, you should focus on a target audience that is most likely to buy your products or services.

To do this, you can use audience segmentation, from potential new leads to the most prominent supporters and spenders of your product and service offerings. 

4. Project Your Target Number of Leads

Your target number of leads should be determined based on your marketing funnel. Your marketing funnel should always aim to get leads that convert or generate sales.

For example, if you’re looking to generate a thousand email addresses, it would help to approximate how many of those email addresses can potentially lead to a sale. If you’re not satisfied with the number, it simply means that you need to increase the number of leads you reach. 

5. Specify Your Target ROI

Your target return of investment (ROI) should be based on your target sales and your target number of leads. You should determine if your campaign will lead to the desired revenue or not.

Moreover, your ROI should be based on how much you’ve spent on your campaign. The goal is the least amount of investment for the most revenues possible. It does not mean you downgrade the quality of your output just to chase a bigger ROI. Quality campaigns need quality marketing budget allocation. 

To get the most ROI from your marketing investments, you need to work smart, utilize all free tools and avenues you can optimize (i.e., content marketing, blog posts, email campaigns), and use paid channels wisely (i.e., PPC campaigns, social media ads, and the like). 

Moreover, determine the dollar value of the sales and the leads. It would be best to compare the value of the sales with the value of leads. A high ROI is the best ROI.

Conclusion

Your marketing budget should be spent wisely to achieve your business goals. Be wise when spending your marketing budget to earn your business goals or objectives. You need to determine the response from your marketing campaign and the relevance of your campaign.

Luxury Sandbox is a full service digital marketing company in Kona. We help local businesses grow through PPC advertising, original content, web design and development, branding, social media management, and conversion rate optimization. Unlock your brand’s potential today!

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