How to Rework Your Budget for Bigger Marketing Spending
Marketing is a huge expense for businesses of all sizes. This is for a good reason— marketing drives sales and helps new potential customers discover a company’s products or services. Without consistent marketing efforts and great Marketing Spending, sustained growth is very unlikely. However, there are other operating costs to consider and it’s not always possible to add more to the marketing budget. So how to rework marketing spending?
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One way to free up some room in the marketing spending is to rework things and make some decisions about where your spending is going. By making your business more efficient and streamlined, you can increase the money that’s available for marketing campaigns.
Here’s how you can start making more space in your operations budget.
Assessing Your Current Budget
Before you make any changes to your budget, you first need to perform a detailed assessment of your current budget and actual spending. This can take a while, but it’s a critical step when you’re trying to reevaluate and prioritize your spending. Work with your CFO, financial controller, or financial advisor so you can make informed decisions.
See if there are any obvious opportunities for reducing spending. Are you paying for software tools that you’re not using? Are you spending too much on products that don’t sell well? These obvious unnecessary expenses can help free up some money in the budget.
You should also look for less obvious opportunities. Are there ways you can streamline your operations and make them more efficient? Are there tasks you could automate? Could you outsource tasks that don’t need to be done every day?
During your budget assessment, you should take a hard look at how your current marketing initiatives are performing. What is the average ROI on different campaigns? Can you learn something about where your marketing dollars are doing the heaviest lifting? Could you reallocate funds from marketing projects that aren’t doing as well?
In some cases, it’s not necessary to increase a company’s marketing budget. Sometimes, simply shifting money into more profitable projects can do the trick, promoting business growth without increasing the overall marketing budget.
Setting Marketing Goals for Marketing Spending
Putting money into marketing is only worthwhile if you have a clear strategy and defined goals. Without these parameters, you are likely to waste money on marketing initiatives.
To set your marketing goals, you need to first consider your overall business objectives. Do you want to build brand awareness? Create thought leadership content? Drive short-term sales?
Different marketing activities will have different effects on your business, and you don’t want to spread yourself too thin. Choose one goal to start with and go from there.
Once you know what you want to achieve with your marketing strategy, you’ll need to figure out what your key performance indicators (KPIs) are so that you can monitor your progress toward your goals. Giving yourself a timeframe for achieving your marketing goals will help keep you on track.
Researching Marketing Opportunities
Starting with a goal will help you build your strategy and understand the costs of what you want to do. After you’ve set your initial goal, it’s important to do market research and see what customers are looking for. Knowing what your customers really want and need is critical to any successful marketing strategy.
Trends and tastes change, so don’t think that you’re all set if you’ve done market research in the past. You might be surprised by the state of the market today and your research might prompt you to make some changes in your strategy. Don’t forget to consider the ROI of the marketing opportunities you’re considering.
Creating a New Budget for Your Marketing Spending
After you’ve gathered all the information you need to improve your marketing initiatives, it’s time to make a new budget. Be sure to factor in the estimated cost of the new marketing campaigns you’re considering.
Calculate the required budget to achieve the defined marketing goals.
Prioritize marketing activities based on their potential impact and alignment with goals.
Allocate funds for different marketing channels, such as digital advertising, content creation, and social media.
Employing Cost Optimization Strategies
Some items simply can’t be cut from the business budget entirely, but that doesn’t mean you can’t save money on them. Cost optimization simply means exploring cost-saving measures you could take to maximize your budget. Some examples of this would be switching software platforms, going with a cheaper vendor, or negotiating better rates with current vendors.
Remember, different categories of spending will have more or less wiggle room. It’s also important to realize that the changes you make in your budget don’t have to be permanent. Your business needs will ebb and flow, based on a variety of factors and it’s important to revisit your budget regularly so you can optimize your spending.
Tracking Your Marketing Data
When it comes to marketing, you need to stay on top of data collection and analysis so that you can adjust when needed. If a strategy that you’ve been trying for a while isn’t working, you’re better off using your budget to explore other strategies that might perform better.
Using analytics will allow you to track your KPIs for marketing initiatives and see the ROI over time. Just make sure that you’re giving your strategies the time they need to work before you decide to reallocate your resources.
Adjusting Your Approach & Recalibrating Your Marketing Budget as Needed
Marketing principles remain the same, but the field of digital marketing is always changing. You’ll want to create internal processes for evaluating results and adjusting your approach, based on the data you collect for marketing spending.
Staying flexible is important for long-term business growth. You have to be willing to adapt and adjust as the needs of the business and market changes shift. Optimizing your marketing budget isn’t a one-time task. It’s an ongoing project that you’ll revisit over and over again.
Vice President, İntelligent Design & Consultancy Ltd
Over 12 years of global & rich experience in Portfolio & Program Delivery Management in leading & managing IT Governance, PMO, IT Portfolio/Program, IT Products, IT service delivery management, Budget Management, and more.