One of our favorite questions we get at Raborn Media from our clients is, “how much should our organization spend on advertising?” Our answer, “Well…it depends!” Welcome to the topic of Budgeting.
Many thoughts go into budgeting long before the first dollar is spent on advertising. Raborn Media’s goal when it comes to budgeting is to help determine what your most cost-efficient spend is based on the goals you have in mind. Are you trying to brand a new business or new location? Maybe you’re seeking new clients or leads? Perhaps you are an established business with a loyal customer base but looking to expand into a new service line? Or possibly you’re simply looking to create brand awareness and spread information in some capacity? All these goals have different strategies, and our team is here to help guide you through them.
When it comes to Budgeting, we tend to think of three different buckets:
1. How much should you be spending?
When thinking about a fixed dollar amount towards a marketing budget, we start with the goal in mind and determine where our most cost-efficient spend will be. Let’s take an example, an attorney:
With this in mind, we’re willing to spend up to $1,000 to get a website lead
If we can get website leads for an average of $120, the attorney is profiting $880 on that exchange.
The key here is understanding what a conversion is worth, and budgeting according to that. And finally, setting you up with a plan to utilize this information.
2. What and where should you be spending your money.
Once a dollar amount is determined, the next step is to figure out how the budget should be spent – specifically on what and where. Advertising comes in so many shapes and forms. Traditional mediums such as billboards, radio ads, and tv commercials. Digital platforms such as Facebook, Instagram, Over The Top streaming (OTT), YouTube pre-roll, Google AdWords, and others. And finally, setting up the ad to the correct audience – will it be targeted towards a specific demographic, or will it be broadcast to more of a broad, diverse audience? Our team has the budgeting experience to know what and where your advertising dollars should be spent.
3. Rules for adjustment moving forward.
Lastly, the key to setting up and maintaining a good budgeting strategy is knowing when to adjust that strategy. Again, depending on the goal in mind, our team sets up a timeline to evaluate the results of the strategy in place. We look at impressions, frequency, GOAL CONVERSION, and review with you if new content is recommended, should we target a little differently, or should a new platform be included.
So, going back to our original question, “how much should our organization spend on advertising?” Yes, it does depend, but, our team is here to help guide you through the process.
Return on investment is critical, and understanding how much you should be spending based on current revenue and goal revenue are factors we can help you accomplish with your Budgeting needs.
