Again, take the figures below as guidelines and balance them with your own experience, as well as any upcoming projects that will affect your budget (e.g. See below for some benchmark values from MarketingSherpa.
The next step is determining how to allocate your marketing budget across various channels, tools, projects, etc. Regardless of the method you choose, once you determine your marketing budget, you’re ready to move on to step 2. I’ll go over this method in a future post, but if you’re interested, here’s a copy of my Excel model so you can use it right away. But ultimately you have to work with your leadership team to arrive at a number everyone is comfortable with.Ī better way to calculate your marketing budget might be to first establish your revenue and marketing goals, and then back out how much money you need to accomplish those goals based on cost per lead/opportunity, ASP, win rate, and sales cycle assumptions. B2B companies are generally on the lower end of this scale, and B2C companies are on the higher end. Generally this ranges between 6-11% depending on whether you’re B2B/B2C, selling products/services, have a lot of brand recognition, etc. One method to calculate your marketing budget is as a percentage of the company’s revenue. In some cases, the overall marketing budget is set by the CEO or CFO, but if you’re in the enviable position of setting your own budget, see some benchmark figures below from the 2014 CMO Survey. The first step to personalizing the marketing budget template is determining what you have to work with. Step 2: Allocating Your Marketing Budget.