What is a good ROI from my Google Spend? How much should I spend on social this year? Should I spend money on Facebook and Instagram ads and how much should I put in? It’s every marketer's favorite time of the year – budgeting . Setting a marketing budget is tricky enough for some businesses, let alone understanding how much should be spent on digital vs. offline. If you need to establish a marketing budget to hit a particular revenue and profit goal, you can use a budgeting formula based on ROI to work toward measurable results that directly impact the bottom line. This session will give you a better understanding of how much your budget should be and how you can make better sense of where you should be spending proactively and reactively. You’ll learn: Principles of ad budgeting How to plan a budget-efficient strategy Best practice tactics to optimize your social media budget Watch On-Demand: https://www.falcon.io/cmp/roi-resources/

1. Taylor Ryan
Founder / CEO of Klint & GrowthSecrets
13+ years of marketing/startup experience
From Washington, DC – 5 Years in Denmark
6x Startup Founder
Finalist – Ecosystem Hero of the Year 2020
Accelerator advisor, board member, and
mentor for start-ups
Owner of an award winning agency and
growth-hacking course
Startup junkie, Investor, keynote speaker,
technical marketer, and growth hacker
KlintMarketing.com

2. Taylor Ryan
4 Exits – (1 IPO, 2 Acquisitions, 1 Merger)
Running teams of 15 – 30 at a time
Startup Accelerators and Innovation Workshops
Bulletproof tech stacks resulting in 10X ROI and Endless Leads
Helped Startups into Y Combinator + Accelerators + Investment
Connect with me on LinkedIn for the slides!

3. Growth-Hacking and Digital Marketing Agency.

4. Growth-Hacking and Digital Marketing.

5. Growth Models

6. My Goal for Today?
Provide Value

7. Why are you here?

8. Covering a lot of Ground!
Marketing Department Budgets
Digital Ads Budgets
Best Digital Ad Channels
Predictable ROI
Forecasting
Minimal Budgets
Influencer Marketing Budgets

9. Before we start… Can we agree on some stuff?

10. Every Industry is Different

11. Every Product and Service are Different

12. Every Business Model is Different
Community
P2P (peer-to-peer) Business Model
Online & Offline community
Online research community
Social Network / Communities
Subscription model
Crowd funding
Shared Economy
Community App
Online courses (P2P)
B2C
Consumer Goods
Subscription
Tiered Subscription
E-commerce
Box of the Month (subscription)
Quantified Self
Sharing Economy (B2B)
“The Internet of Me”
Ecommerce blended with app
Online service (app)
Quantified Self
“The Internet of Me”
App (subscripton)
Online service (app) + Offline product (device)
Personalization
Freemium [Saas / Membership Fee]
DATA
Big-Data
Selling (Big) Data
Data Model
B2B2C
Product-Service combination
Ads / Aggregator
Affiliate System
B2B
Professional Network / Community
Broker Mode
SaaS
Subscription model
Online Classes (B2B)
Non-Profit / Sustainability
3rd World Targeting
Combination profit and nonprofit
Public Service
Healthcare 2.0
Quantified Self (Trackers)
Data-Driven Personalized Medicine
Subscription (Health + Care)
On-Demand Service (Doctors)
Telehealth Platform
Hardware
Wearables
Hardware and Software

13. Every Target Audience is Different

14. Every Digital Ads Platform Is Different
Each has a Different, Audience, Features, Pricing, and Use Cases

15. Every Offer and Conversion Are Different

16. Therefore Every Funnel Is Different

17. A Few More Things
Save Time Where You Can…
You Don’t Have To Build
Everything From Zero…

18. Mapping YOUR Userflow SAVES Tons of Time
I’ve mapped out hundreds of funnels…
• Compliance
• Defining the steps to the sale + Dropoff Percentages

19. There Are LOTS of Ad Spend Calculators
You Don’t Need to Create These From Scratch

20. Use Industry and Channel Averages
Get a baseline - Average CPM, CPC, CTR, CVR, CPA, CAC

21. You Can Measure POSITIVE ROI From PAID Social Media
Thousands of case studies..
10X Revenue IS Possible
Source 1 / Source

22. Big Picture - Marketing Budgets

23. Total Marketing Budget
What Percentage of the Total
Company Yearly Revenue Should
Be Allocated to Marketing???

24. Total Revenue Should be be Spent on Marketing
Every Business Model, Industry, and Company Will Be Different (5% - 40%)
• Saas Startups (Saastr) – 35-40%
• Saas (Gartner) – 10 – 13%
• Average Company (The CMO Survey 2021 - Deloitte) 11.7%
• B2B 10-11%
• B2C 14-15.5%
• Business under $5M (US Small Business Administration) 7 – 8%
• All Companies in Industries (Gartner) 6.4%
• Canadian B2C (BDC.ca) 5 – 10%
Source

25. Marketing Budget Based On Percentage of Total Revenue

26. Total Marketing Budget

27. Digital Ads Budgets

28. Total Budget for Digital Ads Only
What Percentage of the Marketing
Budget Should Be Allocated to
Digital Ads???

29. Marketing has a lot of moving parts…
Paid Digital Advertising
• Digital Ads Creation, Management, Optimization
• Search, Display, Social, Influencers
• Monthly Media Spend
Content:
• Blogs, Ebooks, Social Media, Guest posts, Video
• Graphic design, Feature images, Product / Screenshots
PR
• Small, Mid-Tier, Top Tier Publishers,
• Amplification, Press releases, Media Kit
Web
• New Website, Landing Pages, Speed, Optimization
• Forms, Product Marketing, Integrations, Scraping
Email Marketing:
• Outbound, Inbound, Newsletters, Sales, Product
• Segmentation, AB testing, Optimization, scheduling
Events
• Webinars, Tradeshows & Expos
• Affiliate / Referral Programs
Marketing Software & Tools
• Inbound, Outbound, Project Management
• SEO and Optimization Tools
• Premium Content Creation Tools
• Data Enrichment and Analysis Tools
Team / Salaries
• Team Management, Designer, Content Writer
• SoMe, Web Developers, Videographer, Growth Hacker
Affiliate / Partners
Management of affiliate networks, Referral campaigns, Monitoring
Other
• Agency / Freelancer
• Web / Landing Pages
• Computers, Equipment, Visual Assets
• Training
• Traditional - Print ads, TV or Radio commercials
[ ]

30. Average Total Marketing Budget Breakdown
72.2% of marketing’s budget is spent on pure digital channels (Gartner)
*Remember, these numbers will vary MASSIVELY by industry
Also who the hell has time to answer industry surveys???

31. Choosing The Right Paid Digital Channels

32. Paid Digital Channels
Which Digital Ads Channel Is the Best?

33. …Best For What?
…Who do you want to reach?

34. Remember… Every Business Model, Product, Etc is Different
Lots of Variables: Industries, Products, Business Models, Audience(s), Intent, Types of Ads
+ +
+
+
= Lots of Possibilities

35. Basic Marketing Funnel
• Simpler Funnel = More Conversions
• More Steps = Less Conversions
• Build Campaigns for each step of the funnel
• Conversion Rate Optimization [CRO]

36. B2B: Networks + Types of Ads
Awareness
Interest
Decision
Action
Landing Page, Lead Ads
Remarketing / Retargeting
Search Ads, Display Ads, Intent
Targeted Ads / Custom Audiences

37. B2C: Digital Ads + Networks
Awareness
Interest
Decision
Action
Landing Page, Marketplace, App Store
Remarketing / Retargeting
Search Ads, Display Ads, Intent
Buyer Persona Targeting = Audience Building

38. Conflicting Advice Everywhere
Example #1
• 20% Audience Building
• 20% Re-Targeting
• 60% Offers / Promotion
Example #2
• 60% Audience Building
• 18% Re-Targeting
• 19% Offers / Promotion
• 3% Retention

39. If you’re starting out…
Honestly, just hire Klint to do the work- we’ll do it for you
Win On 1-2
Channels First
Get it right before blowing the budget:
• Targeting
• Intent
• Visual / Copy are HUGE
• Play With Different Offers

40. Focus On Conversion Rate Optimization [CRO]
Increase CVR By Optimizing the Each Step of the User Journey
Clearer Page Copy:
• Clear Headlines and CTA’s
• Persuasive
• Landing Page Tailored Specifically For Ad
• Add Trust Signals
• Add Risk Reversal
• Add Confidence - Support or Returns
• Easy to Understand Pricing
UX:
• Good Navigation
• Filtering and Sorting
• Fast Site Speed
• Simplicity
• Responsive
• High Rez Product Images
Checkout
• Less Form Fields
• Least Amount of Steps As Possible
• Simple Checkout
• Pricing Psychology
• Exit Intent Popup
• Abandon Cart Email
And Much More!
We should just have a meeting… KlintMarketing.com

41. Growth-Hacking and Digital Marketing Agency.

42. Predictable Revenue With Funnel Data

43. B2B: Saas Funnel Forecasting
Ad Click – Click Through Rate (CTR) = 0.7%
Landing Page Conversion (CVR) = 2.35%
Marketing Qualified Lead (MQL) = 39%
Sales Qualified Lead (SQL)= 38%
Opportunity= 42%
Deal Won= 37%
Define The Metrics of Each Step of the Funnel + Channel
*Metrics will vary by industry
Traffic to Landing Page: 100%

44. B2B: Saas Funnel Forecasting
Ad Click – Click Through Rate (CTR) = 5% [1500]
Landing Page Conversion (CVR) = 2.35% [37.5]
Marketing Qualified Lead (MQL) = 39% [14.6]
Sales Qualified Lead (SQL)= 55% [8.04]
Opportunity= 42% [3.38]
Deal Won= 37% [1.25]
Define The Metrics of Each Step of the Funnel + Channel
*Metrics will vary by industry
Total Impressions of ad Campaign on Specific Channel = 100% [10.000]

45. B2C: Mobile App Funnel Forecasting
Facebook Ad Click – Click Through Rate = 100%
Visit App Store = 95%
Download and Install = 70%
App Launch = 65%
Start Registration = 40%
Complete Registration= 30%
Remember you will lose users at each step of the funnel
Metrics will vary by industry
Add Product to Cart = 12%
Begin Checkout= 4.8%
Complete Checkout= 1.77%

46. B2C: Mobile App Funnel Forecasting
Facebook Ad Click – Click Through Rate = 100% [10.000]
Visit App Store = 95% [9500]
Download and Install = 70% [6650]
App Launch = 65% [4322.5]
Start Registration = 40% [1729]
Complete Registration= 30% [518.7]
Remember you will lose users at each step of the funnel
Metrics will vary by industry
Add Product to Cart = 12% [62.24]
Begin Checkout= 4.8% [2.99]
Complete Checkout= 45% [1.34]

47. Digital Ads Budgets

48. Cost Per Impression
Cost Per 1000 Impressions (CPM)=
Total Campaign Spend
Total Number of Impression
x 1000
Tofu / Audience Building / Awareness
Facebook AVG: $7.19 (Source)
Google Ads: $38.40 (Source)
General Avg: $2-$10 (Source)

49. Cost Per Impression
Cost Per 1000 Impression(CPM)$5=
$750 Total Campaign Spend
150K Total Number of Impression
x 1000
Facebook AVG: $7.19 (Source)
Google Ads: $38.40 (Source)
General Avg: $2-$10 (Source)
Tofu / Audience Building / Awareness

50. Cost Per Click
Cost Per Click (CPC)=
Total Campaign Spend
Total Number Of Clicks
Google Ads: $1-$2 (Source)
FB Ads: $0.70-$1.01 (Source)
Remarketing / Retargeting
Google Ads: $0.66 to $1.23 (Source)
MoFu / BoFu
Remarketing / Retargeting / Interest [Intent] / Decision
Money Spent: $12K
# of Clicks: 5106
Cost Per Click:

51. Cost Per Click
Cost Per Click (CPC)$2.35=
$12K Total Campaign Spend
5106 Total Number Of Clicks
Google Ads: $1-$2 (Source)
FB Ads: $0.70-$1.01 (Source)
MoFu / BoFu
Remarketing / Retargeting / Interest [Intent] / Decision
Money Spent: $12K
# of Clicks: 5106
Cost Per Click: $2.35
Total # of Conversions
Total # of Visits

52. Conversion Rate
Conversion Rate (CVR)=
Total # Of Attributed Conversions
Total Number Of Visits
x 100
*Let’s pretend every click turns into a visit
Google Search Ads: 3.48% (Source)
Google Display Ads: 0.72% (Source)
FB Ads: $9.21% (Source)
Money Spent: $12K
# of Clicks: 5106
Cost Per Click: $2.35
Total # of Conversions: 408
Total # of Visits: 5106
Conversion Rate:

53. Conversion Rate
Conversion Rate (CVR)7.99%=
408 Total # Of Attributed Conversions
5106 Total Number Of Visits
x 100
*Let’s pretend every click turns into a visit
Google Search Ads: 3.48% (Source)
Google Display Ads: 0.72% (Source)
FB Ads: $9.21% (Source)
Money Spent: $12K
# of Clicks: 5106
Cost Per Click: $2.35
Total # of Conversions: 408
Total # of Visits: 5106
Conversion Rate: 7.99%
Total # of Leads:
Cost Per Action:

54. Cost Per Action
Cost Per Action(CPA) =
Ad Spend
Total Number of Leads
Sometimes known as Cost Per Lead (CPL) When leads are qualified into prospects
Google Search Ads: $59.18 (Source)
Google Display Ads: $60.76 (Source)
FB Ads: $18.68% (Source)
Money Spent: $12K
# of Clicks: 5106
Cost Per Click: $2.35
Total # of Conversions: 408
Total # of Visits: 5106
Conversion Rate: 7.99%
Total # of Leads:
Cost Per Action:

55. Cost Per Action
Cost Per Action(CPA) $29.41 =
$12K Ad Spend
408 Total Number of Leads
*Some add the cost of the marketing labor to compare platforms
A Lead is NOT Revenue
Google Search Ads: $59.18 (Source)
Google Display Ads: $60.76 (Source)
FB Ads: $18.68% (Source)
Money Spent: $12K
# of Clicks: 5106
Cost Per Click: $2.35
Total # of Conversions: 408
Total # of Visits: 5106
Conversion Rate: 7.99%
Total # of Leads: 408
Cost Per Action: $29.41

56. Cost Per Click + Cost Per Lead + Lead to Conversion Rate
Cost Per Click (CPC)$2.35=
$12K Total Campaign Spend
5106 Total Number Of Clicks
Conversion Rate (CVR)7.99%=
408 Total # Of Attributed Conversions
5106 Total Number Of Visits
x 100
Cost Per Lead(CPL) $29.41 =
$12K Ad Spend
408 Total Number of Leads
Money Spent: $12K
# of Clicks: 5106
Cost Per Click: $2.35
Total # of Conversions: 408
Total # of Visits: 5106
Conversion Rate: 7.99%
Total # of Leads: 408
Cost Per Action: $29.41

57. Additional Steps Depending On the Funnel
B2C - Ecommerce
B2C - Saas
Cart Abandonment =
Number of Completed Purchases
Number of Carts Created
x 100
SQL =
Number of MQL Leads Qualified By Sales
Total Number Of Leads
x 100
Closing Rate =
Number of Leads (Qualified) That Resulted In Sales
Total Number of SQL Leads
x 100
MQL =
Number of Leads Qualified By Marketing
Total Number Of Leads
x 100
Average Cart Abandonment Rate 70% (Source)
MQL Average 17% – 15% (Source)
SQL Average 0.9% - 63.33% (Source)
Closing Rate Avg 15% and 30% (Source)

58. Additional Steps Depending On the Funnel
B2C - Ecommerce
B2C - Saas
Cart Abandonment 67% =
277 Number of Completed Purchases
408 Number of Carts Created
x 100
SQL 72.5% =
222 Number of MQL Leads Qualified By Sales
306 Total Number Of Leads
x 100
Closing Rate 50% =
111 Number of Leads (Qualified) That Resulted In Sales
222 Total Number of SQL Leads
x 100
MQL 75% =
306 Number of Leads Qualified By Marketing
408 Total Number Of Leads
x 100
Average Cart Abandonment Rate 70% (Source)
MQL Average 17% – 15% (Source)
SQL Average 0.9% - 63.33% (Source)
Closing Rate Avg 15% and 30% (Source)

59. Customer Acquisition Cost
Customer Acquisition Cost = Total Spend
Total Number Of New Customers
$12K Revenue – Cost of Goods Sold
Revenue
Gross Margin =
Profit = # of New Customers x Gross Margin
Customer LTV = Gross Margin
Churn Rate
CAC $81 - $1985(Source)
LTV is Industry Specific
Churn Rate = # of Lost Customers
Total Customers (At Start of Time Period)

60. Customer Acquisition Cost
Customer Acquisition Cost $108 = $12K Total Spend
111 Total Number Of New Customers
12K Revenue – 3K Cost of Goods Sold
10K Revenue
Gross Margin %70=
[$7000 Per Deal]
Profit $777K= 111 of New Customers x $7000 Gross Margin
Customer LTV $140K= $7000 Gross Margin
5% Churn Rate
CAC $81 - $1985(Source)
LTV is Industry Specific
Churn Rate 5% = 10 Lost Customers
200 Total Customers (At Start of Time Period)

61. Budgeting for Resources / Management
What Percentage of the Marketing
Budget Should Be Allocated to the
Team???

62. Allocation of Resources By the Hour for a Campaign
Team:
• Project Manager
• SEM Specialist [Assuming they can write Copy]
• Designer / Videographer
Tasks Hours Management SEM Specialist Videographer
Strategy 20 12 4 4
Targeting 10 1 9 0
Competitor Analysis 10 1 7
Ad Design / Video Production 24 0 0 24
Editing 4 0 0 4
Copywriting 8 1 7 0
Ad Production In Facebook Ads Manager 14 0 14 0
AB Testing 4 1 3 0
Analysis / Monitoring 8 2 6 2
Reporting 8 2 6 0
Optimization / Management: 20 2 18 0
Project Manager / Admin 14 6 4 4
Total Hours 130 22 74 34
Divided By 40 Hour Work Week 0.55 1.85 0.85
Pretend Wage [$45] 990 3330 1530
Total Price $5,850.00
Price doesn’t include the cost of doing it wrong, training, etc

63. “Real” Customer Acquisition Cost
Customer Acquisition Cost (CAC)=
Total Marketing Expenses + Spend (All Marketing Costs )
Total Number Of New Customers
Revenue - Cost of Goods Sold
Revenue
Gross Margin =
Profit = # of New Customers x Gross Margin - Labor

64. “REAL” Customer Acquisition Cost
Customer Acquisition Cost $160.81 = $12K Total Spend + $5850 (Marketing Labor)
111 Total Number Of New Customers
12K Revenue – 3K Cost of Goods Sold
10K Revenue
Gross Margin %70 =
[$7000 Per Deal]
Gross Profit $771.150K = 111 of New Customers x $7000 Gross Margin - $5850 (Marketing Labor)

65. Do this for all channels and Define the Following
Top Preforming Channel (Most Leads)?
• Organic, Organic Social, Email
• Paid Social, Paid Search, Affiliate / Partners
Top Preforming Channel / Campaign Return on Ad Spend (ROAS)?
Return On Investment Per Channel (ROI)?
Customer Acquisition Cost (CAC) / Customer Lifetime Value (LTV)
Other Performance Metrics:
Conversion Rate (Per Channel), CPC, CPM, CPL, CPA

66. This doesn’t work on an on-going basis… Skip it…
Data entry sucks
Too easy to make mistakes
And there’s way better tools…

67. Dashboards Will Save You YEARS of Your Life

68. Forecast Without Running Any Ads

69. Forecast Without Data From Any Campaigns
Building a Model Per Channel
• Clicks
• CPC
• Conversion Rate
• Conversions
• CPA
Where Can I Get This Data?
• Historical Data [Our Previous Campaigns]
• Industry Averages
• Guesswork…?

70. Forecast Using Industry Averages Instead of Real Data
What you need to define:
• Product Price
• Cost of goods / service(s)
Look Up the Industry Average:
• Cost Per 1000 Impressions (CPM)
• Cost Per Click (CPC)
• Click Through Rate (CTR)
• Conversion Rate (CVR)
Helpful Comparisons Using Industry Average
Customer Acquisition Cost (CAC)
Churn Rate (Churn)
Customer Lifetime Value (LTV)
If you can’t find the industry average, take the platform average

71. Example - Using Data From FinTech
Let’s Pretend We’re Selling a $99 Per Month B2C FinTech Solution
What you need to define:
• Product Price $99
• Cost of Goods / Service $29
Look Up the Industry Average:
• Cost Per 1000 Impressions (CPM) $7.19 [Source]
• Cost Per Click (CPC) $3.77 [Source]
• Click Through Rate (CTR) 0.56% [Source]
• Conversion Rate (CVR) 9.09% [Source]
Helpful Comparisons Using All-Industry Average
• Customer Acquisition Cost (CAC) $1,202 [Source]
• Churn Rate (Churn) 1%-17% [Source, 2]
• Customer Lifetime Value (LTV)… Depends… [Source]

72. [Source]
What if I hate data entry and spreadsheets…?
Google the Following:
Type of Campaign +
Platform +
Calculator or Template or Google Sheet
[Source]

73. Helpful Insights On Forecasting
Timeline:
• Setup + Baseline = 3 Months
• Optimization = 6 Months
• Clear Winner(s) = 12 Months
2 Estimations Per Channel:
• Conservative
• “High Growth”
Early Outcomes:
• “The Most Effective Campaigns Are Optimized Versions Of Less Effective Campaigns”
• Campaigns Testing Strategies Save Time & Money [Not covered in this presentation]
• Organization, Rapid Experimentation [AB Testing], and Patience.

74. Minimum for Testing

75. My Favorite Question…
What Is the Least Amount of
Money I Can Spend on Ads?

76. Comparing Google Search Ads With Youtube Ads
Apples and Oranges
Skippable In-Stream Ads.
Non-Skippable In-Stream Ads.
Discovery Ads
Bumper Ads
Outstream Ads
Text Ads
Responsive Search Ads
Dynamic Search Ads

77. Why The Minimum Isn’t the Best
Statistical significance
“Statistical significance is the likelihood that the difference in conversion rates between a given
variation and the baseline is not due to random chance.”
source
P-Value = 5%
Min of 5000 Impressions

78. Run times for Testing Facebook Ads
How Long Should I Run Ads [Facebook]
• 2-3 Days for Blind Test [Avoid this]
• 7 Days [Indications of Trends]
• 14 Days [Clear trends]
• 30 Days [Certainty]
Too Short?
Limit Facebook’s ability to learn how to serve the right audience based on your targeting

79. Stay Structured….
Your Ad Structure May Need Some Work…
Customer
(ICP)
Vertical /
Industry
Pain /
Value based
Competitor
based
Technology
based
Message 1
Message 2
Message 1
Message 2
Message 1
Message 2
Message 3
Message 1
Message 2
Message 3
Linkedin
Facebook
Other Ad
Network

80. Wrap Up

81. Growth-Hacking and Digital Marketing Agency.

82. Growth-Hacking and Digital Marketing.

83. THANK YOU
Questions?
Connect with me on Linkedin!
Please add an intro message

84. Taylor Ryan
Founder / CEO of Klint & GrowthSecrets
13+ years of marketing/startup experience
From Washington, DC – 5 Years in Denmark
6x Startup Founder
Finalist – Ecosystem Hero of the Year 2020
Accelerator advisor, board member, and
mentor for start-ups
Owner of an award winning agency and
growth-hacking course
Startup junkie, Investor, keynote speaker,
technical marketer, and growth hacker