Planning your marketing budget effectively can be the difference between a successful campaign and one that drains resources without delivering results. But what’s the best way to do it, especially when working with a part-time CMO? Whether you're a startup looking to grow or an established business aiming to scale, getting your marketing budget right ensures that you make smart investments that generate returns.
Working with a part-time chief marketing officer allows businesses to access high-level expertise without the full-time price tag. But it also means that careful marketing budget planning is essential. With your part-time CMO’s guidance, you can strategically allocate your resources to achieve the best results for your company.
What Does a Marketing Budget Cover?
A well-structured marketing budget is key to running successful campaigns that reach your target audience and maximize ROI. But what exactly should your marketing budget plan include?
Here are several key categories that are typically part of any comprehensive marketing budget:
1. Software/Tools
Every modern marketing strategy requires a range of software tools, from CRM systems to analytics platforms, to manage campaigns and track results effectively.
2. In-House Marketing Employees’ Salaries
If you employ any in-house marketers, you must include their salaries in your budget because they are essential to daily operations.
3. Vendors and Consultants
Outsourcing specialized tasks, such as graphic design or web development, often requires working with third-party vendors or consultants. Your budget should account for their fees.
4. Advertising (Digital & Print)
Advertising spends, whether on Google Ads, Facebook ads, or print media, form a major part of most marketing budgets. These are critical to reaching a broader audience.
5. Public Relations
You should include any PR campaigns in your budget to help you build brand awareness and trust.
6. Events/Trade Show Costs
You should account for costs such as event registration, booth setup, and travel expenses if your business attends or hosts events.
7. Training and Conferences
Investing in continuous learning for your marketing team helps them stay up-to-date with the latest trends and technologies.
8. Additional Revenue Generation Tactics
This can include anything from lead generation services to partnerships with influencers, all aimed at boosting revenue.
Not only do these categories need to be part of your marketing budget plan, but they also help marketers meet their goals effectively.
How Do you Plan your Marketing Budget?
Creating an effective marketing budget requires careful planning and strategic thinking. Here’s a step-by-step guide to help you plan and allocate your marketing spending:
1. Set Marketing Goals
Your marketing goals should be the foundation of your budget. What do you want to achieve? Whether it's lead generation, brand awareness, or increasing sales, your budget should align with these objectives.
2. Determine Your Budget
How much are you willing to invest in marketing? Budgets can vary, but a good rule of thumb is to spend 5-10% of your revenue on marketing, though this depends on your industry and growth goals.
3. Outline Your Marketing Plan
Before allocating your budget, outline your marketing strategy. Will you focus on digital ads, email marketing, or content creation? Each area will require its own portion of the budget.
4. Allocate Budget Toward Channels and Campaigns
Once you have a plan in place, allocate your budget to the different marketing channels you’ll use, such as SEO, SEM, or social media marketing. Be sure to consider how much you’ll need for each campaign.
5. Track the Progress
Regularly monitor how your marketing efforts are performing. Tracking your campaigns will help you determine whether your marketing spends are driving the desired results.
6. Measure ROI
Measuring the return on investment (ROI) for each campaign helps you see where your budget is generating the most value. Your part-time CMO will be instrumental in analyzing these metrics and adjusting future budget allocations accordingly.
When planning, always set SMART goals (specific, measurable, achievable, relevant, and time-based). By combining clear objectives with strategic budget allocation, your part-time marketing team can work to achieve the best possible results.
How Much Should You Allocate to Your Marketing Spending?
The ideal allocation depends on your business type, growth goals, and industry. On average, companies tend to allocate 10–20% of their revenues to marketing. But the percentage can vary significantly based on the stage of your business.
For example:
Startups may spend closer to 10-20% to establish their presence.
Established companies may spend around 10-15% or more, depending on the industry, focusing on maintaining market share and boosting growth,
While these figures provide a general idea, it’s essential to build a marketing budget that fits your unique situation. Whether you're working with a part-time marketing manager or a larger team, use data and past campaign performance to guide your budget decisions.
Best Practices for Marketing Budget Allocation:
1. Allocate Based on Audience
Invest in the platforms and channels that reach your ideal audience. Knowing where your customers spend their time will help you allocate funds effectively.
2. Diversify Your Strategy
Avoid concentrating all your efforts in a single area. Distribute your budget across various marketing channels, including social media, SEO, and email marketing. This way, if one channel underperforms, others can balance it out.
3. Collaborate with Sales
Align your marketing budget with your sales goals. When marketing and sales teams collaborate, it ensures that both departments are working towards the same revenue objectives.
4. Use Data to Guide Decisions
Leverage data from past campaigns to inform your budget. Track key performance metrics and reallocate resources as needed based on what works best.
5. Focus on Bottom-of-the-funnel Marketing
Allocate more budget to marketing efforts to target leads who are closer to converting. By focusing on bottom-of-the-funnel tactics like lead generation through SEO or Google Ads, you can drive more conversions and maximize your ROI.
Working with Your Part-time CMO
Partnering with a part-time marketing CMO can make all the difference when planning your marketing budget. A part-time CMO brings the expertise of a full-time executive but with the flexibility to work within your budget constraints. They help you set clear goals, allocate resources efficiently, and ensure every marketing dollar counts.
A part-time marketing manager or CMO can guide you through the process of monitoring and adjusting your marketing plan to ensure optimal results.
Want to get started? Book a discovery call with One Rawr to discuss how a part-time CMO can help you plan your marketing budget and achieve your growth goals.