What will your 2022 Marketing budget depend on?

[shukla7789]

Setting a marketing budget for a business is never easy, especially when it comes to a digital marketing budget.

While for some marketing managers, the forecasting exercise is more of a clairvoyance exercise, others base themselves on a series of quotes provided by service providers for more or less defined tasks (e.g.: my SEO in 2022, my CRM, my content strategy, my lead generation), and others, finally, have tunisia mobile database budgeting the same budget for more than 5 years!

Yet... defining an annual marketing budget is essential: too little budget limits your company's potential for brand awareness, lead generation, and product or service sales. And too much marketing budget increases company expenses without necessarily generating more business results!

The generally accepted rule is that a company's marketing budget should be around 10 to 15% of past or expected revenue in the following year.

In theory, your 2022 Marketing budget will depend on several points:

What did you do in 2021 during the Covid crisis? Did you take advantage of it to digitize your business? CRM, website redesign, processes? Or not at all?

The life cycle of your product/service/business: if you are in the launch phase, your resources must be higher than if your product is mature or in decline.

The market you are in: in new technologies (software, SaaS, App, etc.), the marketing budget can go up to 50% of turnover.

The target region: the whole world, Europe, Belgium, Wallonia or even 100km around your location?

Who are your competitors? What market position do they occupy? Are they leaders? Are they challengers? How do they communicate? And what communication actions generate traffic? Leads and customers?

Your internal resources and skills? Do you have a team in charge of content, SEO, CRM management, ads, etc., or do you need to hire an agency?

The turnover you expect to achieve with your new sales.

Your company's image and positioning: Are you in the luxury sector? Your budget must match your image.

Costs: The cost of customer acquisition and retention must also be considered and included in the marketing budget.