snap: what can your marketing budget actually buy you?
TRANSCRIPT
2 in 3 marketers now
spend more of their marketing budget on
‘owned’ channels, rather than ‘bought.1
1 in 4 marketers budget
between 20 and 30 per cent of their marketing
spend for their own online channels.2
Contact Snap to discuss your marketing budget and how you can make the most of it.
123 http://www.pwc.com.au/media-centre/2014/marketing-spend-shifts-jul14.htm • 4 http://expandedramblings.com/index.php/10-print-marketing-statistics-know/1/ 5 http://expandedramblings.com/index.php/10-print-marketing-statistics-know/2/ • 6 http://www.billboardsaustralia.com.au/outdoor/statistics2 • 7 http://blogs.salesforce.com/company/2013/07/email-marketing-stats.html
CLIENT PROFIT VALUE MODEL
Establish how much profit the average client is worth each year, and then use a
targeted, realistic number of new customers to determine total profit from new clients.
Work out what around 40 per cent of this total profit is, and there you have your annual marketing budget.
There is no magic number behind the
creation of a marketing budget, but these
three models may help determine what’s right
for your business.
Remember, you can’t predict the future. Build a contingency fund of between 10 and 15 per cent into your budget.
Take your total revenue and use a percentage of that for your marketing. Generally, the percentage should be
somewhere between 2 and 10 per cent, but startups
may need to budget significantly more.
FOLLOW THE PACKThere are plenty of market-research results available
online that provide information on the average
percentage of revenue spent on marketing in
specific industries. Use this information to guide (not determine) your decision.
How to plan your spend
BUT NOT EXCLUSIVELY
Identify key launches, promotions and sales periods for when you may want to invest
more funds.
Spread your design
With a few tweaks, the same advertising design can be used and repurposed across various mediums.
Share your owned content
Share the content from your website, blog and social media pages with publishers, clients and industry leaders.
Speak to a professional
Think hiring a professional is expensive? Try working with an amateur. Trust in designers who have been doing the job for years and you’ll get better and faster results.
Add online to print
Use a QR code, social media links and URL placement in your print designs to give potential clients multiple touchpoints.
Use eDMs
44% of email recipients made at least one purchase last year based on a promotional email. Build your own database and distribute eDMs and newsletters regularly.7
1 2 3 4 5
39% of consumers test a business out for the first time because of direct-mail advertising.4
65% of consumers’ decisions are somewhat
influenced by outdoor advertising.6
THE FUTURE IS OWNED & ONLINE…Internet advertising is predicted to become
THE LARGEST ADVERTISING SECTOR BY 2018.3
Marketing budgets aren’t just for large organisations. Any company hoping to grow should make room for
marketing spend in their annual budget.
MARKETING BUDGET
How to set your marketing budget:
3 METHODS
Plan major spends first, then work with
the remaining budget to plan how it can be best utilised.
PERCENTAGE OF REVENUES
Ensure your marketing
objectives are aligned with your business goals and strategy.
44% of consumers who receive direct-mail marketing from a brand
will then visit their website.5
WHY BUDGET?
What can your marketing budget actually buy you?