Working out the size of your marketing budget

The first time that you sit down and try to plan out your marketing budget can be a pretty scary experience. You will quickly discover that it is possible to spend an almost unlimited amount of money on your marketing activities. If your pockets aren’t very deep, it’s all too easy for this to put you off the idea of running a marketing campaign altogether.

What you need to keep in mind is that spend isn’t important, it’s the return on investment that it produces. You should be happy to spend more and more money on your marketing efforts so long as the ROI that you are achieving is hitting an acceptable level. The big question for your accountant or bookkeeper before you start your first marketing campaign is what ROI do I need to achieve? This is information that you can then take to your marketing team or agency when they are putting your plan together.

You may wish to favour online advertising at the start of your campaign as it is generally easier to track ROI and the effectiveness of your campaign while it is going on. There are a number of methods that you can use to track the ROI of offline campaigns but these are generally more complex and it can take longer to get numbers back.

Keep a laser-like focus on your ROI and regularly check it and you are far more likely to see success in your online marketing efforts.

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