Digital marketing is an entity created by many small streams, where money can be made to burn on absolutely pointless things. That’s why budgeting for marketing is a talking point and a chore. What all should your company prepare for and what could you ignore?
Where to start with digital marketing budgeting?
Unfortunately, there is no one right answer to marketing budgeting that works for every company. The budget is influenced by, among other things, the size of your company, business, turnover and goals. According to some estimates, the marketing budget is on average approx. 2-5% of the company’s turnover for B2B companies and approx. 5-10% for B2C companies .
In our experience, the biggest challenge of digital marketing budgeting in Finland is usually its absoluteness. For example, your company Poland Phone Number List decides to set a fixed annual budget of 100,000 euros, which cannot be flexed under any circumstances. In June, it is noticed that the company’s website is hacked and restoration requires urgent measures from the website partner. 5,000 euros break from the budget for a surprising expenditure. During the Christmas season, it is noticed that the budget is no longer enough to maintain advertising and no more money is given, even if the best sales season of the year is at hand.
Budgeting is also directly related to the change in purchasing behavior. Channels and the selection process are constantly evolving. For example, TikTok has Phone Number IT become the hottest social media channel in a short time, where advertising can bring a significant competitive advantage to a brand. How can your company take these into account in its budgeting in the middle of the year?
Consider at least these in your budget:
- Fixed costs, i.e. for example the price of work, licenses and tools.
- Surprising expenses. For example, something breaks and needs to be fixed.
- Development, such as trainings, analysis, planning.
- Trying something new, like new channels, new visuals, new copy.
- Flexibility if, for example, the season starts earlier or later.
Let’s take a closer look at what the points mentioned above can concretely contain.
