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Optimising Your Marketing Budget for Best Results

Optimising your marketing spend is crucial for achieving the best possible outcomes. Every pound invested should bring measurable returns, whether in brand awareness, lead generation, or sales growth. However, many businesses struggle to allocate their resources effectively. This guide will walk you through practical steps to allocate your marketing budget wisely and maximise your impact.


Why It’s Important to Allocate Marketing Budget Wisely


Allocating your marketing budget correctly ensures that your resources are used efficiently. Without a clear plan, you risk overspending on ineffective channels or missing out on high-potential opportunities. A well-structured budget helps you:


  • Focus on high-impact activities that drive results.

  • Avoid wasteful spending on underperforming campaigns.

  • Adapt quickly to market changes and new trends.

  • Measure success and optimise future investments.


For example, if your target audience spends most of their time on social media, allocating more funds to social media advertising rather than print ads will likely yield better returns.


Eye-level view of a desk with a laptop and marketing charts
Marketing budget planning on a laptop

Steps to Allocate Marketing Budget Effectively


To allocate your marketing budget effectively, follow these key steps:


1. Define Clear Marketing Goals


Start by setting specific, measurable goals. Are you aiming to increase brand awareness, generate leads, or boost sales? Clear goals help you decide where to invest your budget.


2. Analyse Past Performance


Review previous campaigns to identify what worked and what didn’t. Use data analytics tools to track metrics like conversion rates, cost per lead, and return on investment (ROI).


3. Understand Your Audience


Know where your audience spends their time and what content they engage with. This insight guides you in choosing the right channels and messaging.


4. Prioritise Channels Based on ROI


Focus on channels that have proven to deliver the best ROI. For instance, if email marketing has consistently generated leads at a low cost, allocate more budget there.


5. Set Aside a Contingency Fund


Reserve a portion of your budget for testing new strategies or responding to unexpected opportunities.


6. Monitor and Adjust Regularly


Marketing is dynamic. Regularly review your budget allocation and campaign performance to make necessary adjustments.


Close-up of a hand writing on a marketing budget plan
Planning marketing budget allocation on paper

How should a marketing budget be allocated?


Allocating your marketing budget depends on your business size, industry, and goals. However, a common approach is to divide your budget across several key areas:


Digital Marketing (40-50%)


  • Search Engine Marketing (SEM): Paid ads on Google and Bing.

  • Social Media Advertising: Platforms like Facebook, Instagram, LinkedIn.

  • Content Marketing: Blogs, videos, infographics.

  • Email Marketing: Newsletters and automated campaigns.


Traditional Marketing (20-30%)


  • Print Advertising: Magazines, newspapers.

  • Events and Sponsorships: Trade shows, local events.

  • Direct Mail: Flyers, postcards.


Branding and Creative (10-15%)


  • Design and Creative Services: Logo, website design, video production.

  • Market Research: Customer surveys, focus groups.


Contingency and Testing (5-10%)


  • New Channels: Emerging platforms or technologies.

  • Pilot Campaigns: Small-scale tests before full rollouts.


For example, a small business might allocate 50% to digital marketing, 25% to traditional marketing, 15% to branding, and 10% to testing new ideas.


High angle view of a marketing team discussing budget allocation
Team meeting to allocate marketing budget

Tools and Techniques to Maximise Your Marketing Spend


Using the right tools can help you get the most from your budget:


  • Analytics Platforms: Google Analytics, HubSpot, or similar tools to track campaign performance.

  • Marketing Automation: Tools like Mailchimp or Marketo to streamline email campaigns.

  • A/B Testing: Test different versions of ads or landing pages to find the most effective.

  • Customer Relationship Management (CRM): Manage leads and customer data efficiently.


Additionally, consider adopting a data-driven approach. Use insights from your analytics to reallocate funds from underperforming campaigns to those delivering better results.


Tips for Small Businesses on a Tight Budget


If your budget is limited, focus on high-impact, low-cost strategies:


  • Leverage Social Media Organically: Engage with your audience through regular posts and community interaction.

  • Content Marketing: Create valuable blog posts or videos that attract and educate your audience.

  • Email Marketing: Build and nurture your email list with personalised content.

  • Collaborate: Partner with other local businesses for joint promotions or events.


Remember, even with a small budget, strategic allocation can lead to significant growth.


Final Thoughts on Allocating Your Marketing Budget


Optimising your marketing budget is an ongoing process. It requires clear goals, data analysis, and flexibility. By following the steps outlined above, you can ensure your marketing investments deliver the best possible results. Keep testing, learning, and adapting to stay ahead in a competitive market.

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One of the things small businesses desperately need

  • Novus
  • Jul 5, 2022
  • 2 min read

Accountability.


Small Businesses Desperately need accountability

What constantly amazes us at Novus, is that entrepreneurs and small business owners are more than happy to attend seminars, workshops and training courses that cover the tasks they should be carrying out to help their businesses grow.


During said workshops, these business owners will be inspired and motivated to follow through with all the plans they’ve made that day. They’ll leave full of creativity and have plenty of ideas about what they’re going to do.


For the next week—maybe even the next month—they’ll stick to those plans, then their enthusiasm will begin to wane. Maybe they start to see some reactions to their efforts, and as business gets a little busier, all their promotional plans and good marketing intentions fall by the wayside or plummet to the bottom of their list of priorities.


This is one of the reasons small businesses experience such highs and lows, such feast and famine.


Consistency is key, and to achieve consistency, most entrepreneurs need to be held accountable. It’s not that they want to see their creativity and enthusiasm diminish, they just become so busy that, when they do sit down to create some promotional posts or marketing content, they can’t focus. They can’t see the wood for the trees.


Novus has just launched a new service to combat this common problem.


Monthly sessions with our social media manager, Cait Hall. Book a session with Cait to form a content plan, then spend a couple of hours with her once a month, on a rolling basis, to ensure you are consistently writing and creating effective content throughout the year.

Having the headspace to concentrate on getting your whole month’s content written is incredibly valuable. As is having a sounding board who can help, support and guide you towards creating effective, evocative and professional-sounding messages your target audience will respond to. Someone who will hold you accountable. Those few hours a month is all the time you’ll need to set aside—the rest of the month you can (literally) go about your business, safe in the knowledge that your marketing is in the bag for a fraction of the cost you’d pay an agency and with your own unique voice inherent in everything you post.


We knew these sessions would be popular with frustrated business owners, but even we’ve been surprised at the rate of take up. As soon as one session ends, clients are block-booking the next six months out of their diaries, to take advantage of this simple but effective support.


Social media bamboozles plenty of entrepreneurs, particularly those who don’t enjoy creating content. Cait can produce your posts for you, should this be preferred; the monthly sessions will still prove helpful for both parties to frame and hone content, whomever physically creates it.


There are some small businesses yet to get into the content creation game. If they can survive without a digital presence, that’s fine…but look at what happened in the pandemic when everything moved online. It’s wise to cover all bases—even if you can only do so much and spare only a little time for content. It will still have an effect.


If you’d like to book some time with Cait, contact her on cait@novusmarketingsolutions.co.uk or call 07983 575934.


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