How to calculate the budget of an advertising campaign in optimal figures? There are two main approaches to determining the size of the budget for a campaign – based on capabilities and based on needs. In the first case, the company will have an amount for which limiting rules are established – mandatory for specialists participating in korea whatsapp data the campaign. Set Marketing Budget Limits The company has no opportunity to exceed the limits. They can be:
- fixed;
- tied to revenue (profit);
- linked to the results of the previous reporting period.
The “needs-based” budget is more flexible, since it has no upper limit and can be revised from time to time. The criteria for determining its size (its adjustment) can be:
- goals and objectives for business promotion that are relevant at a particular moment (the situation in which a brand or product is just being introduced to the market and the one in which sales have been going on for a long time are different, and they require different campaign methods);
- data on competitors (if their advertising budgets have increased, then it makes sense for the company to catch up so as not to lose market share).
The “needs” method can rightfully be considered more effective in modern business. Its advantage is in establishing specific factors that influence the determination of the marketing budget.
What influences the size of the marketing budget
The required marketing costs are determined by the number and complexity of tasks that need to be implemented during the what is dns hijacking and how to prevent it from happening on your website promotion campaign. Examples of such tasks:
- informing customers about new products, discounts and special offers;
- increasing and maintaining brand awareness;
- attracting new clients;
- ensuring growth of the average bill;
- increasing market share, developing new sales areas;
- formation of the company’s image;
- stimulating consumer interest in the brand.
To solve each problem, a suitable tool is select, and the required intensity of its use is determin – which directly affects the cost of using the solution. Set Marketing Budget Limits For example, to inform about a new product, the following can use:
- contextual advertising;
- mailings;
- social media posts;
- SEO promotion;
- affiliate promotion (through contracts with bloggers, influencers).
The choice of a specific channel depends on many factors: the scale of the business, the goals and objectives of a specific advertising campaign, the profile of the specialist involved. For example, in the case of a contextual specialist, search advertising network channels will use primarily. Set Marketing Budget Limits A targetologist will use tools for working with the target audience (for example, in social networks), as well as for analyzing data on competitors.
The specific composition and volume of promotion channels used will directly affect the formation of the advertising budget.
In what composition and volume should promotion channels use?
To determine the indicators in question, it is necessary:
1. Specify the goals of the campaign italy numbers and determine the criteria (key indicators) for achieving them.
The goals should be:
- specific, measurable (in quantitative, monetary terms);
- realistic;
- relevant to the current market situation.
2. Determine through which channels (and to what extent they are use) the stated goals can achiev.
3. Determine how much money (what conversion) achieving the goals can bring the company, and compare this amount with expenses:
- to use channels in the established volume;
- for the production of goods or services (that is, their cost price).
If the expect revenue is higher than the upcoming expenses, the chosen marketing promotion model can be consider profitable. Set Marketing Budget Limits This will be a working version of the marketing budget. If there are several channels to choose from, you can calculate the most profitable one and use it.
Example: Let’s say the goal of our marketing campaign is to introduce a new product (handmade cakes) to 10,000 people within a month.