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The Secret Formula for a Marketing Budget

Coming up with the right marketing budget for your business (or guiding a client on the subject) can be a real struggle. What works one year might not work the next. What works for one type of campaign might not work for another. It might be tempting to lump everything into your sales budget and call it a day.

But not having a clear marketing budget just doesn’t cut it anymore. A Gartner/CMO Magazine report from 2015 showed major public companies spend more than 10 percent of their total revenue on marketing. Numbers like these show there’s a direct correlation between a company’s success and its investment in marketing.

So, how do you hit that marketing budget “sweet spot”?

Lou Covey, principal of Footwasher Media Agency, has decades of experience helping clients solve this exact problem. In this article, he shares two simple equations that can take a lot of the guesswork out of the process.

1 = 10 | T = $

The first equation (1 = 10) is about the ROI you can expect to receive on average for your marketing initiatives. The second one (T = $) is about how to factor time and resources into your budget.

To learn how you can use these equations for your own marketing efforts, get the full article below.

 

AUTHOR
Michelle Moore
Michelle Moore

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