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The Marketing Budget Formula that Guarantees ROI

marketing formula

Do you know that up to 10% of the business’s total revenue goes into the marketing budget? And this percentage is a significant amount of money going into marketing plans that may not always give desired results. That’s why Key Performance Indicators (KPIs) are the best friends of marketers when it comes to measuring if their efforts are sufficiently rewarding.

87% of marketers using videos are satisfied with the amount of ROI that videos have generated for their social media accounts, whereas 93% said that videos were a vital part of their marketing strategy. There's no one-size-fits-all required approach when it comes to digital marketing. You need a plan tailored just for your business, and that will depend on how much money you're willing to invest! We'll share some essential considerations up-front, along with a sample budget that makes sure all the important aspects are covered. This way, you can report achieved goals and higher returns. Marketing budget and ROI have great importance.


An Effective Marketing Budget Example

Allocating $500,000 to specific marketing activities is no small feat. Here's how $500,000 might be spent on marketing for a medium-sized B2B company.

This is just an example budget to give an idea of how things work. Your marketing plan must make in accordance with your business goals and financial capabilities. Each company has a varied business plan. Your numbers should never stay static and should be polished by testing different methods.

Website 10 – 15% ($50K - $75K)

Who does not know the advantages and appreciable ROIs obtained by a well-built, SEO-complaint website? A website in the face of your brand, and as much as design and content matter, it must convert the visitors to customers. A website must have an optimized flow that directs the user seamlessly into the sales funnel.

Content Marketing 15 – 25% ($75K - $125K)

Content marketing is an important step that helps in expanding the business. It is vital for any business with a digital presence. Content marketing also aids in landing new business opportunities. One can invest in different forms of content marketing such as videos, blogging, info-graphics, white papers, podcasts, case studies, and other promoted marketing that helps in creating a sense of awareness about the brand or service.

Email Marketing 5 – 10% ($25K - $50K)

Again, email marketing is one of the most effective ways to retain and nurture your leads. Email marketing helps when you don’t mind when losing contact with the customers who do not very often visit your website; through this, you are on their radar until they are ready to take the next step… make a purchase.

Another great advantage of email marketing is that it is relatively inexpensive to set up and can give higher ROI in return.

Conventional Methods of Marketing 10 – 15% ($50K - $75K)

This is the area where you can opt for old-aged methods of marketing that are still effective and give results, such as TV commercials, radio spots, billboards and events, and print ads in magazines. Many modern brands will opt for methods that provide immediate results, while these ways will only benefit in solidifying and sustaining the investments in traditional methods.

Social Media Ads, Display, and Search Engine Marketing PPC

15 – 25% ($75K - $125K)

Search Engine Marketing consists of SEO and buying-per-click (PPC) ads on search engines such as Google and AdSense. These promoted ads can be extremely helpful with the right copy and keywords the buyer uses. Display ads are more of banners kind of ads on websites relevant to the business. Social media ads, such as Facebook and LinkedIn ads, can bring a substantial ROI with the right creative skills and targeted audience.

The kind of result ads give, it makes sense to invest a big chunk of your marketing funds in these ads. In the beginning, it is best to start with a smaller investment and experiment with things. You can later adjust things according to the results of the campaigns.

Influencer Marketing, PR, Off-Page SEO 15% – 25% ($75K - $125K)

This is one of the fast-growing ways of promoting and marketing your products or service. Many companies opt for influencer marketing and PR as it is relatively cheaper. This includes a wide range of tasks such as creating a brand presence on social media, sourcing high-profile guest blogging opportunities, and achieving creative collaborations with niche influencers. These activities can significantly introduce your brand to the masses if appropriately planned, hence, a much increased ROIs.

Final Thoughts

Whatever your marketing plan, it will be your and your team’s exclusive brainchild that caters to the needs of your business’s marketing goals. If you are searching for the best video solution agencies in your town, then Overbars Creative must be your one-stop. It is a video production agency that combines creativity and goals to make the best strategies for your business needs.

We hope you have found this information useful, so stay tuned by Subscribing below or Contact Us to see how we can elevate your brand.


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