HOW DO I CREATE A MARKETING BUDGET?
There are two schools of thought on budgeting:
- Zero-based budgeting requires pricing out all the tactics in your marketing plan to produce a total budget requirement.
- Goal-based budgeting uses past budgets and results to determine future budgets. For example, if you want to double your audience, goal-based budgeting would suggest doubling your marketing budget.
Organizations should use both schools of budgeting to narrow the area of budget focus and come up with realistic, workable numbers that align with marketing goals.
Here are some additional budgeting tips:
- If your goal is to grow your audiences, dedicate 15–25 percent of your total organization budget to marketing.
- Newer organizations should allocate even more money to marketing. Over time, the percentage can be reduced.
- Remember the 6:1 rule—it takes six times as many dollars to bring in a new customer as it takes to retain a current customer. Allocate your budget accordingly.