Why do we treat asking about budget like a dirty secret?

Let's talk about the 'B' word—budget. 🤐 It shouldn't feel like a dirty secret. In fact, being transparent about your budget sets the stage for success. Here's why:

When you're upfront about your budget, it gives your agency a clear roadmap to tailor recommendations that align with your financial reality. No more unrealistic proposals that leave you scratching your head.

Remember, your budget should reflect your goals, and vice versa. It's all about balance. Being realistic about what it takes to achieve your objectives is key to hitting those milestones efficiently.   It’s as simple as that.

‍So what can you do in advance of your next digital marketing tender?

A simple calculation can be completed to gauge what your total marketing budget should be.  As a rule of thumb, to apply a full-funnel multi-channel approach to your marketing you will need to spend between 10-25% of your target revenue. 

For example:  If you want to make £500K it would be advisable to ring-fence between a £50,000 - £125,000 budget to achieve this. 

Consider factors like brand awareness and if you have historical campaign data to provide valuable  insights when setting your budget.    If you are a relatively new brand or have not been investing in brand awareness activity for a long time, this is likely going to mean you will need to work within the higher end of the scale.  

And speaking of data, it's your best friend when it comes to optimising ad spend and maximising ROAS (return on ad spend).   With this in mind, it is always a good idea to run a campaign forecast to project expected performance.  This is much easier to do when there is a wealth of recent historical campaign data to work from.

However, if you are starting from a fresh ad account or have not actively advertised for a while you can create a rough forecast and forecast based on live data when your campaign leaves its learning phase.   As the saying goes, if you can measure it, you can manage it, and that is what a forecast does, it gives you an initial figure to measure against.

At Evolare, we believe in building relationships based on transparency. Understanding your needs and goals, including your budget, is at the core of what we do. Because when our clients succeed, we succeed. 

Let's connect and explore how we can help you soar in 2024 and beyond 🦅