Today we’re talking about… Getting better at budgeting for 2021.
NB: This is an article from Tambourine
Every year the same question.
“How much should I budget for digital marketing?” It’s such a loaded question. With so many factors at play, the question can feel overwhelming. And that’s probably because it’s not the best question to start with.
Before you ask “how much should I spend?”, ask yourself this one, “How much can I spend?”
Sure, it’s a small change in syntax. But it’s a big change in thinking.
Just how much can I spend?
There are a lot of channels out there. Google, Facebook, Bing, a host of 3rd parties. Understanding how much you can spend on each is critical to budgeting and planning. Can I spend 10K on this channel? 20K? Is there a limit?
Yes, actually. There is a limit.
It might seem like there’s an endless audience on every platform, but that’s not exactly true. At some point, the audience gives out and there are no more relevant people to target. It’s important to note that almost every platform can give you some indication of the overall size of the audience. You just have to ask or know where to look. Then you can decide how much of that audience you want to target.
Enter “Share of Voice”
“Share of Voice” is usually given as a percentage. In other words, budgeting for 50% share of voice means you’re budgeting to hit 50% of the total available audience. Understanding “share of voice” helps you build a budget you can defend. Why budget five thousand over ten thousand? Would spending ten yield better results than spending five? What about fifteen? Can I even spend fifteen? If I do, what exactly will it get me?
More data. More leverage.
Imagine being able to go to ownership and say, “with this $10K we can hit 85% of the people who search this key term.” Or “with an additional $2K, we can hit 80% of our facebook audience.” Suddenly, media planning and budgeting isn’t a guessing game. Instead, it looks a lot more like it should—a numbers game.
Without justification, budgeting can feel a whole heck of a lot like guessing. Share of voice gives you that much needed justification.
Your budget should be a reflection of your goals, which can sometimes be a moving target.