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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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The subject of trust

  • Novus
  • May 10, 2022
  • 3 min read

Trust word using scrabble tiles on a glittery green background

We’ve sometimes worked with clients who are a little nervous about handing over the reins to us in respect of their social media posts. They don’t have the time or skills to fully commit to this aspect of their marketing, so they look at outsourcing it.


Initially, they may seem happy for us to take over their socials. After all, we have the capacity to be consistent, the expertise to know when and where to engage the client’s target audience, and the content writing skills to get their message across.


(Though this doesn’t involve the majority of our clients, the following scenario has cropped up once or twice in the past.)


Novus takes over the client’s social media marketing. A couple of weeks pass by. Then the client gets in touch with the following questions:

  • ‘Why haven’t you mentioned this (some random event/piece of info we had absolutely no knowledge of)?’

  • ‘The tone of the messages needs to be this, not that…’

  • ‘Can you make our social posts longer?’

So…in such a situation, we regroup, reassess and rethink our strategy for said client. Another couple of weeks will pass by. Then they drop us more messages:

  • ‘You should do this (includes a random post from a random company).’

  • ‘The tone of the messages needs to be this, not that…’

  • ‘Can you make our social posts shorter?’

At this point, we begin to suspect that what we’re putting out there on behalf of the client isn’t the problem at all. The issue is trust. The client doesn’t trust what we’re doing. They don’t trust that we’ll make a positive impact on their marketing, despite the fact we evidence results we’ve achieved when working with other clients at the outset of our relationship.


In some cases, the fear felt by the client is because they don’t understand how social media marketing works. They just concentrate solely on the content of a post; they don’t understand the strategy we’re applying and they’re oblivious to their increasing reach and engagement. They see posts from other companies that sound good to them and suggest we copy these, even though said messages are not on brand with all the other content we’re putting out for them.


They may want us to piggyback on National Days or Bank Holidays, but unless these days have particular relevance to the client’s plan or strategy, what is there to say about them? Why post that it’s Easter Monday, for example, if you’ve got nothing more to say about it?


The end result is that both the client and our team end up in a state of stasis. It’s difficult to offer exactly what the customer wants, if the customer doesn’t really know what they want. It’s difficult to make your client stand out from the crowd if any creativity or uniqueness we apply is curtailed.


It’s no problem if you believe no one but you is up to the job of promoting your business on social media; you do you, and be confident in your marketing. However, if you know you’re not best placed, for one reason or another, to be consistent and effective with your socials and you want results, then commit to outsourcing this work responsibly. And, if you’re fine with that step, and you choose Novus to be that third-party provider, be confident in the work we will do for you. Trust us to do it to the best of our ability. If you’re genuinely unhappy with something we present on your behalf, by all means, tell us, but don’t use your fears to beat us over the head with a stick, as it won’t get us anywhere.


If your worries stem from a lack of understanding, that’s not an issue; we’ll happily explain what we’re doing, how we do it, and what we’re in line to achieve. We want you to succeed, and we’re happy for you to remain involved with your marketing, but there’s a right way and a wrong way to do this.


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