Marketing Budget: How to Determine the Optimal Investment for Maximum Efficiency of Your Marketing Strategy

In this article, we’ll show you how to effectively plan a marketing budget and how to allocate investments to achieve maximum return.

1. How to Start Planning a Marketing Budget in Line with Your Marketing Strategy?

The first step is to decide how much of your revenue should be invested in marketing. Generally, companies typically invest 5–15% of their annual revenue into marketing, with startups or fast-growing companies allocating more. It’s important that the marketing budget aligns with the company’s growth plans and goals.

Action Plan: If you're unsure how much to invest, start by setting goals. For example, if you plan to grow by 20%, consider higher marketing investments, especially in areas that bring you the highest return on investment (ROAS). When planning, consider historical data – which channels delivered the best results, and where you should direct more funds.

2. How to Allocate Investments in Marketing Channels Within the Marketing Mix?

The optimal distribution of investments depends on your goals, target audience, and the performance of individual channels. Companies typically invest in a combination of online (e.g., PPC, SEO, social media) and offline (e.g., print, outdoor) marketing. For example, e-commerce companies may allocate more funds to PPC and social media, while B2B companies may invest more in content marketing and email marketing.

Action Plan: Allocate the budget based on the performance of individual channels. For example, if PPC campaigns generate the highest conversions, allocate 40% of your budget there. Conversely, if social media isn’t performing well, invest less. An example of budget allocation for a company with annual revenue of 10 million CZK:

• PPC campaigns: 40% (e.g., 400,000 CZK/year)
• Content marketing: 25% (250,000 CZK/year)
• SEO optimization: 15% (150,000 CZK/year)
• Email marketing: 10% (100,000 CZK/year)
• Social media and branding: 10% (100,000 CZK/year)

Regularly evaluate channel performance and adjust the budget allocation based on results.

3. What to Do If You're Unsure About Your Marketing Budget?

If you don’t know how much to invest in specific channels, start with testing. Allocate a smaller portion of the budget across different channels and monitor their performance over 3–6 months. Based on the results, adjust your marketing budget to focus on the most effective channels.

Action Plan: Try A/B testing PPC campaigns or experimenting with different content marketing strategies. While testing, track key metrics such as CTR, conversion rate, and ROAS. If you find a channel isn’t working, don’t hesitate to reduce investments and reallocate funds elsewhere. For example, try redistributing 20% of the budget to new channels if the current strategy isn’t delivering the desired results.

4. How to Plan a Marketing Budget for the Next Period?

A marketing budget should be flexible and ready for changes. When planning the budget for the next year or quarter, focus on current trends and data analysis. Companies often plan their budgets based on past performance, but it’s also essential to adapt to new opportunities and technologies.

Action Plan: Each quarter, perform a detailed analysis of your campaign results. For example, if you see rising performance with video ads, consider shifting a larger portion of the budget to this channel. We recommend planning at least a yearly budget but always leave a 10–20% reserve for flexible reallocations based on the current situation.

Conclusion

A well-structured marketing budget can determine the success of your campaign. At Delicate Crime, we’re happy to help you with budget allocation, channel analysis, and optimal investment strategies to ensure your campaigns deliver the best results.