Marketing Budgets

Occasionally I get a call from someone who wants to conquer the world for $9.95. Or, to give a real example, to make their brand a household name on a budget of $1000 a month.

This is known as having champagne taste with a beer budget.

If you are doing marketing, you should be planning a campaign - not just isolated pieces or actions. That's how you make the most out of your marketing effort.

But early on in your planning, you need to have a pretty good idea of what your budget is going to be.

Unless you have an essentially unlimited budget, your choice of what media or methods to use will be heavily influenced by how much you can afford to spend.

Why?

Let me give you an example. A new client came to us complaining that he had spent $30,000 on advertising in the previous year with no result.

Turns out, almost the entirety of his budget went into TV commercials. $30,000 on cable translates to about 2 ads a day, spread across several channels.

But it takes repetition to get results in mass media advertising. With that meager exposure, probably no one even noticed their ads!

That same $30,000 put into, for example, online advertising, could have gotten them tons of business.

Of course, by then, he couldn't afford to spend another $30,000. But, knowing his budget, we got good results running a large, full-color, back page ad in a magazine with a very small circulation but one very highly targeted to potential customers of theirs.

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