Article

Peter Abraham
Peter Abraham 1 October 2018

Six tips for marketing budgeting and forecasting success

In order to win in the digital era, marketers need to take control of budgeting and forecasting so they can ensure that the right levels of investment are going into the right channels at the right time.

A new report by Digital Doughnut sister company London Research, produced in partnership with business growth acceleration experts weareCrank, looks at the extent to which companies are benchmarking their spending and reviewing their budgets on an on-going basis. 

The report, which explores what successful marketers are doing differently from their peers, contains the following recommendations: 

1. Forecast rather than accept the marketing budget you’re given

Marketers need to be in control of their budget, making sure they own it by forecasting it. Getting into the numbers improves understanding, helps you manage agencies, and will ensure you assign budget to the right channels at the right time. You'll be more agile, responding to inevitably changing market conditions and channel switching, therefore improving returns and growth.

2. Revisit forecasts and budgets regularly.

Marketers who are not forecasting ROI at some level have no benchmark for how well their marketing spend should be performing. They may be leaving money on the table especially if some channels are performing better than expected where it makes more sense to allocate more spend to that area. Re-forecasting can help you get more budget to allocate in order to exceed growth expectations.

3. Invest more in the digital channels that are exceeding benchmarks.

Invest more of your marketing spend in channels where you can see there is more headroom or upside potential; you will hit a cap but you’ll only know what that is by testing it. If you don’t have, or can’t get, more budget then re-allocate from poorly performing channels online and offline in order to maximise return on investment.

4. Continually adjust spend at least every three months.

Continual adjustment and changing of forecasts and budgets improves results. Many customers use multiple devices, so marketers need to understand not only what channels to use, but also what assets, messages and even products and services work best on what devices in terms of ROI.

5. Know your benchmarks and don't fret so much about attribution.

Benchmarking works best when businesses create their own benchmarks, refer to other third-party benchmark data and monitor any upward or downward swings over time. This should be done for both channel and spend, looking at specific KPIs within each. Attribution is important but not crucial so don’t chase the holy grail - get really good at the basics.

6. Get really good at tracking and tagging.

Although we didn’t ask questions in our survey about tracking, it is the ultimate foundation from which you’ll make decisions about performance and spend. If you’re not tracking correctly, some media will end up in the wrong bucket and you’ll potentially throw money in the wrong direction. If you’re not already doing so, ask questions about your direct traffic.

Check out the full report to learn more.

Please login or register to add a comment.

Contribute Now!

Loving our articles? Do you have an insightful post that you want to shout about? Well, you've come to the right place! We are always looking for fresh Doughnuts to be a part of our community.

Popular Articles

See all
The Impact of New Technology on Marketing

The Impact of New Technology on Marketing

Technology has impacted every part of our lives. From household chores to business disciplines and etiquette, there's a gadget or app for it. Marketing has changed dramatically over the years, but what is the...

Alex Lysak
Alex Lysak 3 April 2024
Read more
Infographic: The State of B2B Lead Generation 2024

Infographic: The State of B2B Lead Generation 2024

A new report from London Research and Demand Exchange looks at the latest trends in B2B lead generation, with clear insights around how lead gen leaders are generating the quality and quantity of leads they require.

Linus Gregoriadis
Linus Gregoriadis 2 April 2024
Read more
How much has marketing really changed in the last 30 years?

How much has marketing really changed in the last 30 years?

Have the principles of marketing changed in the age of the Internet? Or have many of the key fundamentals of the discipline stayed the same?

Ben Hollom
Ben Hollom 15 April 2024
Read more
How to Review a Website — A Guide for Beginners

How to Review a Website — A Guide for Beginners

A company website is crucial for any business's digital marketing strategy. To keep up with the changing trends and customer buying behaviors, it's important to review and make necessary changes regularly...

Digital Doughnut Contributor
Digital Doughnut Contributor 25 March 2024
Read more
7 Reasons Why Social Media Marketing is Important For Your Business

7 Reasons Why Social Media Marketing is Important For Your Business

In the past two decades social media has become a crucial tool for marketers, enabling businesses to connect with potential customers. If your business has yet to embrace social media and you want to know why it is...

Sharron Nelson
Sharron Nelson 29 February 2024
Read more