“I know at least half of my advertising budget works; I just don’t know which half.” This famous quote by Henry Ford confirms: budgeting has always been a controversial topic. Every year, the necessary funds for the next period need to be negotiated in order to be able to invest sensibly. But how much budget is required in the upcoming year and which channels are most rewarding? In all honesty: During budget planning, one often only takes into consideration the previous year. There is a lack of well-grounded basis for assessment that supports you in finding the right budget size. Additionally, neither efficiency nor effectiveness of the used marketing budget is measurable. The success of implemented marketing efforts is often hard to prove, even though this would serve as compelling argument during the next budget negotiations.
What we offer
By taking the strategic goals of the company and the communication objectives into consideration, statistical calculations are used to derive the optimal budget size and therefore recommendations for the allocation of the budget.
The aim is to link the achieved marketing success with the investment made and on this basis determine the necessary funds for the next planning horizon. Based on a target group analysis, the communicative touch points along the whole customer relationship process are examined: when and where does the target group get in touch with your brand – what does the customer journey look like? And what are the crucial moments where the potential customer becomes a buyer? These Moments of Truth are of high importance when measuring the perception and effect of your marketing measures. Specifically, this means that the real influence of various measures is uncovered. This is contrasted with the respective invested budget in order to demonstrate the success of your measures. By means of benchmarking, your own success will become transparent and interpretable in comparison with the competition.
As a result, you receive recommendations for the ideal budget size and budget allocation that give you enough scope for making the actual decisions.
This way, a sound base for undertaking objective budget decisions is available that systematically minimises the risk of misallocations and ensures the efficiency and effectiveness of your marketing budget. This “munition“ for the next budget negotiation as well as the transparency gained regarding the success of the measures can be used for your marketing planning. Moreover, you have advanced knowledge of the efficiency and market success of individual marketing measures in your sector. This helps you to act in a confident manner.