2020 is almost here… Is your marketing budget ready?
For some, it may feel like it’s still a bit too early to start planning for the new year. But the truth is, with the holidays coming up and only a handful of months left in 2019, now’s the perfect time to start preparing for 2020!
Remember… Marketing is An Investment!
The old saying, “you have to spend money to make money” still rings true today. What many people don’t realize is… marketing is an investment in your brand. Meaning, when done right, there should be a pay-off. Whether you’re the CMO of a fortune 500 company or the owner of a small mom-and-pop shop, you need marketing in order to produce a favorable ROI and promote growth for your brand. The only exception to this rule is if consumers need your product or service on a consistent basis, such as with medicine or insurance. And even then, the only way to out-do your competitors who do invest in marketing is if you’re a monopoly or offer exclusive, unique value.
At Asen, we can’t stress enough how important it is for companies to allocate a healthy budget to marketing. From bottom-line, sales-driving strategies to industry-disrupting creative, each component of a marketing campaign requires individual time, attention, and investment. So many components go into an effective campaign, which is why it’s important to plan ahead and give yourself and your team the time needed to perfect the process.
Start Planning Early
By now, if you haven’t started thinking about your marketing budget you may already be behind in terms of what your competition is doing. But don’t fret— we’re here to help!
We understand that starting the budgeting process can feel overwhelming. Many clients come to us with similar questions, but the biggest concern is always: how much should I be spending on marketing? Unfortunately, there’s no simple answer to this question. However, to help make the process a tad easier, here’s a few questions to consider right out of the gate…
A Quick Guide to Setting Your Marketing Budget
Determine what others in your industry are spending.
Being aware of what others in your industry are doing is important, and that applies to spending as well. On average, marketing budgets are around 11% of a company’s total budget, but percentages vary by industry. Knowing what the average is for YOUR industry is helpful, so make sure you and your team allocate some time to research before deciding on a figure. To help ease the process for you, below is a breakdown of common industries and their average marketing spending. If your industry is shown, the accompanying percentage may be a good starting point for you.
Think about how to best allocate your marketing dollars.
Budget allocation varies drastically per industry, brand, and end-goal. Most companies include direct expenses like advertising, trade promotions, and direct marketing. However, some companies choose to include additional expenses in their marketing budgets, such as internal research or employee training. Knowing what you want to include prior to setting your budget is critical to maximizing your ROI. Below is a breakdown of marketing expenses that you could use as a starting point in deciding where and how to allocate budget.
Turn to an expert to ensure you’re budgeting effectively.
Determining and allocating your budget for the year can feel scary. We understand! We live in the same world, which means we get that budgets are unavoidable and extremely important to stick to. If you’re even the slightest bit concerned about the effectiveness or efficiency of your marketing budget, seek help from an industry expert (that’s what we’re here for!). Whether you know a marketer personally or seek out a full-service agency like Asen, going the extra mile to ensure your budget brings the highest possible return on your investment is a wise choice. After all, better safe than sorry, right?
How We Help Our Partners Budget
Here’s the thing about marketing partners… they’re just that— partners. A good partner serves as an extension of your internal team. They should be respectful, open and honest, and collaborative when it comes to campaigns and projects. In general, they’re there to look out for your best interest and help make your days a little bit easier.
At Asen, our goal is to make sure you’re making the best decisions possible for you, your team, and your brand. In doing so, we work backwards within set budgets by prioritizing marketing efforts that will bring you the most return the fastest. Though we also provide our clients with “perfect world” scenario suggestions, we understand that it takes time to grow a brand and we’re happy to work within a budget that’s feasible for you at the moment. From there, we’ll come up with a timeline, delegate projects based on both of our teams’ unique skills, and take you to market!
Want to talk marketing? We’d love to! Our marketing team is here and ready to discuss how we can help you grow your brand. Contact us today!