A Guide To Determining Advertising Budgets
As we enter the 2013 planning quarter, our most frequent client conversations are centered on the annual marketing communications budget. For most companies, what they would like to invest in marketing communications and what they can afford are two different dollar amounts. So determining the annual marketing communications budget and how to most effectively allocate that budget is a key CMO responsibility that requires market insight, proper evaluation of marketing activities and some creativity.
The brand’s goals, its current market position and specific challenges, as well as competitive activity, should all be considered so that no one method should bind a company. And because there is no single method of determining a proper marketing communications budget, the process can be an in-depth and difficult one. However, a fairly simple and commonly used method that we refer to as a first step is determining the ratio of advertising expenditures to projected sales.
This annual report, created by Schonfeld & Associates, Inc. and featured in Ad Age, is a valuable resource. We use it as a discussion guide and to help prevent our marketing wish list from getting way out of proportion.
You can download the full 2011 list with the top 200 industries HERE.
- Linda Passante, CEO, The Halo Group
Six Tips For Effective Media Buying
In the past, if you wanted to do a media buy you had a choice of TV, radio and print. In the past, you were limited with what you could do with your buy. In the past, you had to play it safe. That’s no longer true. The evolution of media has spawned a multitude of advertising options and sometimes, it can be a struggle to keep up. Now you have online, email, mobile, apps, tablets, and more to choose from.
With so many choices, you have to take a step back and focus on some basic guidelines that will help you be successful. To help with this, we’ve created a list of basic tips (because often, basic tips are the most effective, yet the most overlooked) to keep in mind.
- Have a full understanding of your target audience’s media habits and how they consume media. You’ll also have to take into account that your target will most likely have multiple devices and ways to consume media.
- Work closely with creatives, as this can help shape the direction of a media campaign.
- Approach the media strategy and process with a creative mindset. Media has evolved into more than just placing an insertion, it now has the ability to create engaging media opportunities.
- Consider how each media tactic will be measured. The ability to measure the performance of a campaign is key.
- Check your ego at the door. If an initial media recommendation is not working, you have to be willing, ready, and able to modify a media campaign on the fly
- Keep learning! The media landscape is continuously changing and evolving. In order to stay relevant and keep our clients on the cutting edge, you have to keep learning.
Senior VP/Media Services, Michael Pierre, compiled this list. Pierre is a results-proven media and marketing professional with over 15 years of experience in both traditional and digital media.
