While it is easy to set an advertising objective, it is equally difficult to achieve it. Robust advertising campaigns require adequate funds. However, determining the right budget is a tough task. It is even more challenging if you have just established your firm. You can determine your advertising campaign budget through several ways.
Decide the type of media
The type of media you choose — print, electronic or web — determines a major part of the cost of your advertising budget. Each of the above-mentioned medium is different in its own way and is priced accordingly.
Know your target audience
You must know the audience you want to reach. Plan your strategy based on the demographics of your target audience. Compose the profile of your target customers to shape your message. Any campaign is successful only when it reaches its target audience.
Find out about your competitors
While it is vital to stand out in the crowd, it is equally important to find out about your rivals. See how your rivals are advertising. Often the competition determines how much you want to spend. Find out whether your rivals are using print, electronic, web or direct mail for advertising.
Fix a maximum amount you wish to spend
This is particularly useful for firms that have robust cash flows. Determine the maximum amount of money you wish to spend and then divide it. For example, if you want to advertise in the print and electronic media distribute the money according to your need.
Set a small budget initially and then proceed
Do not set a huge budget in the initial stage. It is vital to determine the effectiveness of the advertisement and then set a big budget. You must test the waters before diving. Test the effectiveness of your advertising idea and then set a big budget.
Rely on the judgment
If you are new in the market, rely on your judgment on what the budget should be. Consult a reliable ad agency. Ad agencies will help you plan your campaign at a cost-effective price.
Once you have developed your marketing budget, you need to revisit it time to time and keep it flexible. Even the best advertising campaigns have failed to produce the desired results due to lack of flexibility. Track your return on investment so that you know the effectiveness of your campaign. Compare your tactics and have a plan B, in case the earlier one does not work out. Money spent on advertising is an investment on building up business. You must set clear goals for yourself and set the budget accordingly.
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