The marketing budget describes all marketing actions a company will take in a given period and how much money it will allocate to each one.
You can combine marketing actions within your budget into different items. Online marketing can include your SEO strategy, web maintenance, and Social Ads.
To achieve success and make the most of your investment, it is important to create a budget for social media marketing for your business.
By planning, coordinating, and drawing conclusions from each step, we can see the bigger picture and validate the next steps.
8 steps you can follow to make your marketing budget
Calculate the company’s profit
First, estimate what benefits your company will bring. You will need to use the past year’s results or forecasts from the marketing department for the current fiscal year to do this.
It would be best if you determined the income and expenses your business will receive to calculate the benefits you can expect.
Aim for a certain percentage of return
Based on the above prediction, you should allocate 8% of the profits from your marketing campaigns.
You should review any marketing budgets that you’ve made before. This will help you determine if your previous goals were met or if you need to adjust strategies.
Your third step in your marketing budget is to establish the goals that your department wants to achieve. It is best to use SMART to establish your goals.
This is a method that sets specific, measurable, achievable, and realistic objectives. You must set a time limit to reach them. It is important to establish a time frame for achieving them.
Analyze your target audience
Your target audience will help you choose the best communication channels to reach them. These customers must be individually analyzed and you will need to create Buyer Personas and Archetypes that are highly segmented and differentiated.
This analysis will allow you to segment your customers and focus on your ideal customer. What do they want, what can you add value to them, what social media platforms do they use, etc?
A selection of marketing tools
You will know your goals and who you are trying to reach. Then you can choose the best marketing strategies to reach your target.
After you’ve chosen the advertising strategies you want to use, and have identified the tools that will be required to do them, you need to create a breakdown of the estimated costs for each one. Do you know how much do credit unions spend per year on social media?
To run some campaigns, you must have professional software to create them. You should also consider investing in the maintenance and creation of its contents.
You can reserve a line item from your marketing budget
Reserve a portion of the item for the advertising budget so that you have the opportunity to make changes to your advertising strategy. If your strategy isn’t working, you should always have a plan of action.
Control your marketing budget
To control your spending, it is essential to create a marketing budget. We recommend that you monitor each campaign’s performance and determine if you are getting the desired results.