Look at how much you spent the previous year on your marketing efforts. The table below shows the percentage of revenue companies in different industries spend on their marketing budget. In general, many companies calculate their marketing budget as a percentage of revenue. You can determine your marketing budget based on industry benchmarks, historical performance, marketing goals, and business growth stages. How Much Should Your Marketing Budget Be? And this is what I’ll aim to help you figure out. It’s more about making strategic decisions based on past performance, current resources, and industry trends. There’s no magic marketing formula to help you split your budget. This is one of the trickiest parts of building a budget. Specifically, the marketing budget plan covers all your marketing-related costs - from marketing software and ad spending to content creation, new hires, and contractors.Ĭreating a marketing budget involves mapping all your marketing initiatives and their budget allocation in line with the expected ROI. Use your resources strategically and efficiently.How much are you going to spend on each of your marketing activities? Why's your strategy going in this direction? The budget helps you answer these questions by considering marketing ROI.
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The marketing budget covers how you intend to allocate your financial resources between marketing projects and channels over some time, typically a quarter or a year. So, let's dive in and make every marketing dollar count! What Does a Marketing Budget Cover? I’ll also share how to use the attached free marketing budget template to make the budget allocation process easier. In this article, I’ll guide you through the steps to create a comprehensive and usable budget. By allocating resources wisely and measuring the impact of your marketing efforts, you ensure every dollar spent contributes to the growth of your business.Ĭlick here to download a free marketing budget template.īut beyond the financials, your marketing budget helps you prioritize marketing initiatives and identify areas for improvement. The bottom line, or your return on investment (ROI).