How to Spend Your Marketing Budget

What should I do with my marketing budget? This is a question commonly asked by businesses large and small. Today, we will walk you through some different scenarios of how you can use your budget to maximize your business’ success. Let’s get started!

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You should consider a few things before actually allocating your marketing budget. Some questions to start with are: What is the outcome I am looking for? What’s the price point? Do I need to invest time building relationships, or do I need a larger volume of new customers? We’ll walk you through a couple of scenarios diving into these questions. For both of these scenarios, we’re assuming the companies have an overall marketing strategy, and they’re not going to focus on any particular avenue. We assume this because this is our first piece of advice for you! Diversify your marketing budget to find the most success! To get an all-encompassing strategy, it should include multiple platforms, such as your website and social media.

Scenario 1:

You are a SaaS agency, and you have mid-level pricing ($20-$100 per user), and your goal is to get as many users as possible. If your goal is to get a lot of new users acquired, you want to focus on avenues that will put you in front of as many people as possible. This method won’t be as labor-intensive since you’re not trying to have one-on-one conversations with every person. Two methods we recommend are PPC and SEO. You can do this yourself or through an agency, both of which have pros and cons. Doing it yourself will save you a bit of money but working with an agency will give you years of expertise and knowledge you wouldn’t have otherwise. There will be an additional fee when working with an agency, but they might be able to help you reach your goals faster. For this scenario, we would budget roughly 60% of the marketing budget, including ad spend, to go towards PPC/SEO. 

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Another 15-20% of your marketing budget should be spent on your content strategy. Putting money into creating content that builds trust and expertise within your niche and specific product can help retain new users as well as acquire them. Building trust means helping people understand the outcome that your product gets them. You want people to see the value of your product to get them across the finish line. 

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We would spend the rest of the budget on retargeting email campaigns. The best way to tie it in with the PPC or SEO you’re already doing is to have a retargeting pixel on your website that identifies users and potentially gets their contact information and adds them to an email campaign. You can also use this information to put it into your PPC/SEO campaigns to help improve them. 

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This strategy is not a one-size-fits-all solution as every product and niche will be different, but in general, that’s how we would spend that marketing budget!

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Scenario 2:

For scenario 2, we’ll pretend you’re a marketing agency whose monthly revenue from any single client is at least $1000. How you spend your marketing budget to get higher-paying clients will differ from how we spent it in Scenario 1. For this scenario, we’re not looking to acquire a large volume of new clients. Instead, we’re looking for roughly 2-5 new clients a month.

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The first thing we would focus on is a much more personalized approach. Because they’re higher-paying clients, it’s worth the time and effort to reach out and start conversations with prospective clients and build those relationships. To do this, we would focus mainly on LinkedIn and Email outreach with some level of personalization. We would allocate roughly 50% of the budget to these outreach campaigns. We would also recommend working with an agency on these campaigns if you need clients quickly. If you have a bit more time on your hands, you can learn how to run the campaigns in-house.

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Next, we would allocate money towards a content strategy focused on building expertise. For marketing agencies, setting yourself up as an expert in your field will help establish yourself in your niche. For this content strategy, you’re really selling yourself and your knowledge. We would spend about 15-20% of your budget on a content strategy.

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For the remainder of your budget, we would focus on building up assets you already own. This would include a retargeting pixel, a website funnel, and potentially targeted ads feeding people into those funnels. 

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The strategies we went over today might not work perfectly for your company, and that’s okay! Your needs and industry might vary significantly from what we outlined in this post. But, we hope this post gives you a good idea of different ways you can spend your marketing budget. If you have any questions, please reach out to hello@getboundlessmedia.com! And for even more information about this topic, watch the full episode of our podcast dedicated to it here! 

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