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How to optimize your marketing budget? 10 strategies to implement

Appropriate management of financial resources is one of the keys to success in modern business. Many companies, in times of crises caused by a pandemic or war, decide to limit their marketing expenses. This is a big mistake. A much better solution is proper management of the marketing budget and optimization of expenses. Let’s check how to effectively plan a marketing budget and spend money on advertising.

Marketing budget – what is it?

The marketing budget is understood as all the expenses intended and spent on advertising your company. In the case of internet marketing, you spend these funds on online promotion, for example, Google Ads advertising, website SEO, Facebook Ads advertising and others.

>> How to keep sales in times of crisis? <<

Marketing budget – what should it include?

The marketing budget should include more than just advertising funds. Also important are:

– marketing budget for the internal marketing team – not only the costs of salaries, but also the costs of work equipment should be taken into account,
– marketing budget for cooperation with freelancers – you may want to delegate certain tasks to outsiders, e.g. graphic designers; you need to include their remuneration in your marketing plan,
– tools and programs – modern marketing departments work on the basis of hard data and usually download them from marketing tools, some of them are available for free, but many of them have to be paid a subscription, these tools can analyze data, facilitate publications on social media, enable the creation of graphics, sending newsletters, etc.,
– financial resources for content creation – without content, there is no positioning or internet marketing at all, so when planning a marketing budget, you need to include resources for its creation,
– advertising budget – for cooperation with an SEO agency, Google Ads advertising activities and possible specialist service, advertising on Facebook, e-mail marketing, etc.

In practice, spending on marketing activities can be very extensive. They include:

– website maintenance costs (hosting, domain, website maintenance and making changes and optimization),
– costs of positioning and cooperation with an SEO agency,
– costs of PPC advertising and possible cooperation with the Google Ads agency,
– content creation costs (blog, product content, case studies, guides, e-books, podcasts, videos, etc.),
– costs of preparing advertisements: graphics, banners, pop-ups, newsletters,
– offline costs of online events (participation, travel, accommodation),
– costs of activities in social media (advertising, social media content management tools),
– product photo costs,
– costs of access to online analytics tools.

Why optimize your marketing budget?

Optimizing your marketing budget and managing it efficiently are important both in times of crisis and economic prosperity. With optimal actions, you can:

– reach the right people at the right time,
– conduct marketing activities tailored to the industry in which you operate,
– spend the funds you actually need on internet marketing, control where your marketing resources go and what campaigns you support,
– verify the profitability of specific marketing activities and allocate funds to campaigns that are more effective.

How to prepare a marketing budget step by step?
1. Planning a marketing budget. Identify your goals before starting activities

Regardless of the industry in which you operate, you need to define your goals before starting any marketing activities. Remember that the goal must be:

– measurable,
– specific,
– possible to implement within a specified period of time.

Examples of well-defined marketing goals are:

– increase in the visibility of phrases in Google’s organic results up to 50 top3 phrases within 12 months,
– 25% increase in website traffic within 3 months,
– increase in the number of followers on Facebook / Instagram by 50% in six months.

2. Planning a marketing budget. Determine your resources and maximum budget

Before you set a budget, you need to evaluate what resources you have at your disposal. Also, make sure your marketing and sales teams work together effectively. What can this cooperation be about? Among other things, the creation of content by the marketing department in accordance with the needs of the sales department. When these two teams work together, it is easier to obtain valuable leads.

3. Planning a marketing budget. Perform a market analysis

In order to plan and prepare your marketing budget well, you need to know the situation in the industry. To do this, conduct a marketing analysis of the market. Check:

– what is the competition and whether it invests in internet marketing, and if so, in what channels,
– what is the demand for your products or services,
– what products are offered by the competition and at what prices,
– what discount policy is pursued by the competition,
– what phrases the competition promotes in the Google search engine,
– does the competition acquire incoming links, and if so, from what sources,
– how competing websites or stores build the structure of the website.

4. Planning a marketing budget. Define and know your target audience

How to prepare and plan a marketing budget? Before you start estimating it, think about who your target audience is and how you want to reach them. The target group analysis includes:

– determination of demographic data – who are your recipients (age, sex, location, level of income and education, interests, habits and habits, etc.),
– determination of behavioral data (habits and habits on the Internet – how users browse websites, what devices they use,
– discovery of psychographic data – are the users guided by some values that are close to you and that can decide on the choice of your company,
– analysis of what and how often your recipients buy online.

>> How to build effective target groups in Google Ads campaigns? <<

5. Planning a marketing budget. Specify the maximum budget

Once you know your resources, market and target audience, you’re ready to set the maximum budget for your marketing activities. It’s a good idea to divide your marketing budget into different campaigns and evaluate how much you want to spend for each campaign. Also remember that in the case of many activities, it is worth cooperating with a professional agency, but you need to allocate additional funds for this.

6. Optimization and planning of the marketing budget. Specify what tools you need

The implementation of marketing campaigns, such as positioning, Google Ads or e-mail marketing, often requires access to paid analytical tools. Before you set the maximum marketing budget, think about what tools you will need and how much it costs to access them, and how you can pay for it (monthly, yearly). Add your software expenses to your company’s internet marketing costs. Some of the tools can be used for free (Google Analytics, Google Ads, Keyword Planner, Google Search Console, Canva), but some are only available with a paid subscription Ahrefs, Senuto, Surfer).

7. Planning a marketing budget. Remember to optimize your conversion

Your marketing budget must include funds allocated to optimizing website conversions and implementing and testing new solutions. By optimizing your conversion rate, you’ll generate more sales from the same traffic. This way, ”you can make better use of your marketing resources and you will gain more customers without having to increase your budget. Typically, optimizing your conversion rate is about making page changes and seeing how they’re working.

8. Optimization of the marketing budget. Bet on outsourcing

If you want to reduce your marketing budget expenses, outsource services instead of building your own SEO team or Google Ads campaigns. Why is it worth cooperating with a marketing agency? Because:

– you do not bear the costs of hiring employees,
– you do not have to conduct time-consuming and often ineffective recruitment,
– you do not bear the costs of employee absences,
– you are guaranteed cooperation with specialists if you choose a good agency.

9. How to optimize the marketing budget? Opt for automation

A creative specialist is the basis of your company’s marketing success. However, there are tasks that can be sped up and automated with tools. The areas where it is worth using the software are:

– e-mail marketing (newsletter sending programs such as MailChimp, MailerLite),
– task planning and verification (team management tools such as Trello or Asana),
– planning posts in social media (Postify tools).

10. Planning a marketing budget. Analyze the effects and optimize your expenses

You must constantly optimize your marketing budget. How to do it? Regularly check the effectiveness of various campaigns and commit funds to those activities that bring the best results in terms of lead generation and sales. However, remember that some promotional activities bring long-term effects, for example SEO activities. Don’t give them up after a few months. However, if you notice that your website content works better than email marketing, spend more money on expanding your blog and listing page.

Optimization of marketing activities in various channels

Below, we will discuss how to optimize your budget and marketing efforts for different campaigns.

How to optimize your SEO marketing budget?

Optimizing the website’s SEO marketing budget should focus on considering whether the expenses give a chance to generate the expected results. In many competitive industries, a few hundred dollar SEO budget will be a wasted expense. It is impossible to achieve good results with such low investment amounts. Therefore, it is worth increasing your store positioning expenses if the industry is competitive. You should also periodically verify the effectiveness of individual phrases, e.g. in Senuto and Google Search Console. Choosing a phrase that is popular on Google that describes your business well makes your marketing spend pay back your investment.

How to optimize the marketing budget in Google Ads?

Budget optimization in Google Ads is one of the most important elements determining the effectiveness of a campaign. How should you manage the budget in Google PPC advertising?

– Check the performance of individual keywords and exclude from the campaign those phrases that do not bring impressions and clicks.
– Add negative words to the campaign so as not to waste the advertising budget.
– Optimize the campaign based on the devices used by users, time of day and location – it is worth allocating a larger marketing budget where the effectiveness of the campaign is higher.
– Choose cheap and effective types of campaigns – video ad, Google Shopping Shopping ad or search ad.
– If you have a limited marketing budget, run Google Ads campaigns during peak sales periods. Check how to implement seasonal campaigns.
– Combine Google Ads campaign with SEO.

How to optimize the marketing budget for content creation?

How to optimize the budget in the content creation process? Bet on evergreen content, i.e. content that is always alive, does not become outdated and can attract new recipients and build traffic on the website for a long time. Also use content recycling. This way, you can gain new content based on the resources you already have:

– Turn your blog content into an infographic and share it on social media.
– Record the written product review in the form of a video.
– Convert your video into a podcast and share it on services such as Apple Podcasts, Spotify, etc.
– Add video transcription.

How to optimize your marketing budget for social media activities?

In the case of social media, optimizing your marketing budget is about:

– choosing the right promotional channels – be there where your recipients are – it is best to conduct a market research; you need to be on TikTok if you want to reach teenagers, but Facebook may turn out to be unprofitable,
– sharing relevant content that meets the recipients’ tastes – use the BuzzSumo tool to check what is currently popular in social media.

How to plan and optimize your marketing budget? Summary

Creating effective marketing campaigns has never been more important. A well-used budget for internet marketing activities allows you to build more traffic on your website and get more leads, and then transform them into real customers. Follow our tips and get the most out of your marketing resources.

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