2. The way businesses promote their products
and services changes with time, and so does
the amount you spend on marketing
campaigns. Earlier, you used to worry about
securing primetime commercial slots on TV
channels, buying ad columns in a newspaper
and getting pamphlets designed and printed.
At this moment in time, you are spending a
bigger slice of your promotional budget on
social media campaigns, online content
promotions, and email marketing.
3. Many would suggest you keeping it realistic,
depending upon your annual business revenue
and expenses in different departments. But, a
realistic marketing budget that is designed
without considering organizational aspirations is
like a doughnut without a hole. Devising a
advertisement plan that is realistic yet far-
sighted is a difficult balancing act; you must
design a budget that takes into consideration
your digital transformation aims with the
changing business landscape.
4. The process of creating an effective budget
for promotional campaigns begins with
understanding your financial goals. Unless
you know what strategic and financial goals
you want to accomplish, you won't be able to
suggest the right marketing budget. While
your strategic goal can be the number of
visitors you want to bring to your website,
financial goals include the expected sales
figure and the amount of revenue.
5. Once you have established your financial and
strategic goals, the next step should be
looking at different promotional strategies.
While some promotional strategies help you
achieve your goals faster, they also need to fit
within your budget. For instance, if you
approach influencers with a large number of
followers to tweet about your product, then
the number of website visits is likely to
increase exponentially.
6. Non-working spend is the cost of creating
the marketing content in the form of website
information, graphic design and blogs. The
cost that is incurred in measuring the
performance of these promotional content is
also considered as the non-working spend.
Unfortunately, while deciding upon the
marketing budget, businesses only consider
the media spend on content distribution and
not on content creation.
7. The last step in deciding your marketing
budget is determining how to allocate money
for different online campaigns and
advertisements. While you know your
advertisement goals and the channels where
you need to spend, the next important step is
to ensure that you put money in the right
amount across different digital channels.
8. Setting a marketing budget is only a part of
the overall battle. It is equally important that
the need for digital transformation is
understood across your organization.
Especially those who control the purse strings
need to be made aware of the complexity
involved in executing advertisement plans.
Only with a shared vision, you can ensure that
all those resources which you need to turn
your digital marketing vision into reality are
available right away.
