How Marketers Are Structuring Budgets for 2024
Blog
Apr 17
Even the most thoughtfully crafted marketing campaign won’t help you reach your business goals if it doesn’t include a budget to give it direction. Knowing what’s available to spend and which strategies stand to offer the best return is critical to optimizing the chances of campaign success.
Here’s how marketers are getting the most out of their budgets this year.
Budget Trends for 2024
In 2023, economic conditions had an impact on ad budgets, with 74% of marketers adjusting their plans accordingly. Despite this, 30% expected to increase their ad spending, while 40% planned to keep their budgets unchanged. Looking ahead, in 2024, it’s projected that 41% of marketers are preparing for a rise in budget allocation, while 47% expect their budget to stay the same.
The Strategies Getting the Most Funding
Even when teams are asked to do more with less money, marketing never stops—strategies get realigned, and areas that received significant funding last year may not get the same slice of the pie in 2024. Here’s a glimpse into some key trends that can have an impact on your 2024 marketing budget.
Maximize Marketing Efficiency With AI
The rise of advanced technologies like AI is making it easier for marketing teams to manage their budgets. Tools like the increasingly popular ChatGPT can respond like humans very fast, changing the game in digital marketing. This is key for those who want to stay on top in a tough market. While some worry AI might take jobs, it’s also important to remember the value of human judgment. It’s about finding the right mix between using AI and human expertise.
Mastering Budget Allocation Across Digital Marketing Channels
In today’s fast-paced online world, various channels and platforms come into play when deciding where to spend your marketing dollars. It boils down to understanding your audience through market research, considering what your potential consumers prefer, and having clear goals for your marketing plan. Generally, the most common channels include social media marketing, influencer marketing, sponsored content, and video marketing.
Adapting Marketing Strategies to Consumer Trends
Consumer habits are always changing, and these changes can affect marketing budgets significantly. With the move from broad marketing to targeted, real-time strategies, consumers—empowered by online shopping’s instant gratification—are reshaping the market. Companies are now customizing their offerings, ensuring products meet consumer desires precisely where and when needed. These trends don’t just shape marketing messages and product development but also drive brands to reevaluate their pricing to stay in step with consumer demand and behavior.
Best Practices for Smarter Budgeting
Creating a budget starts with knowing your benchmarks. Generally, small and midsize businesses are encouraged to allocate around 8% of their gross revenue to marketing budgets; however, gross revenue varies greatly depending on business size, product offering, and industry. Research the averages for your particular industry for guidance, and note how it compares to what your company and competitors have spent in the past.
After determining benchmarks, relay budget data to necessary stakeholders. Everyone on the team is responsible for reporting purchases and staying within the allocated budget for a given channel or campaign. Plan regular check-ins so everyone stays on point and adjustments can be made as needed.
Checking in with stakeholders is especially important if you plan to diversify the channels in your marketing mix. Testing new channels is a good way to locate audiences with untapped potential. But just as marketers shouldn’t go all-in on new technology, make sure you’re testing channels that make sense for your specific product or service — don’t risk spreading your budget too thin on tactics that won’t yield results.
For example, while influencer marketing continues to thrive across certain industries, it isn’t necessarily the right move for every product type. Similarly, a company could pivot from using traditional TV ads to testing CTV ads to reach a different audience while also benefiting from CTV’s better measurability.
Whichever channels you pursue, plan to monitor and measure data regularly. You want to direct funds toward strategies that perform well and drive conversions while diverting funds away from tactics that aren’t going anywhere.
In the world of marketing, planning is second nature. But even a well-designed marketing strategy falls short without a clear budget to guide it. It’s essential to understand your spending limits and pinpoint the tactics that promise the best returns. A well-structured budget is a roadmap that ensures your campaigns remain focused and your investments yield optimal results.
Ready to update your digital marketing strategy and build your business?
Our experts are here to help.
