Set your marketing budget from your goal, not from whatever money is left over. Work out how many customers you need, what it costs to win one, and what content, tools and people it takes to get there. Then compare that figure with what the company can afford, split it between what has proven to work and what you are testing, and review it every month.
Step by step
- 1
Start from the sales goal
The number of new customers you need × the acceptable cost to win each one gives an estimate of the spend needed to reach them.
- 2
Add what is not advertising
Content production, photography and design, tools and subscriptions, and team salaries or agency fees are all part of the cost of marketing.
- 3
Separate setup from running costs
Identity, website and technical setup are a one-time setup cost, while ads and content are an ongoing monthly cost.
- 4
Set aside a test budget
A fixed share to try a new channel, audience or message, with the rest going to what has proven results.
- 5
Spread it across the months by season
Ramadan, Eid, back to school and the seasons in your sector may need a higher budget than ordinary months.
- 6
Review by return
Every month, compare what you spent in each channel with the customers and sales it brought, and move money to the best.
Setting the budget as a fixed share of revenue without linking it to a goal or a cost per customer leaves it either too small to grow or spent without accountability.
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