A brand is not only about introducing products and setting up a website but also needs you to adopt approaches that can help promote your brand. Hence, it is important to work on approaches that can lead towards positioning your brand online.
If you interact with an experienced and leading digital marketing company in India, they would recommend you adopt performance marketing approaches. Performance Marketing is all about understanding industry trends and planning your marketing approaches accordingly.
Performance Marketing is all about adopting a specific mix of marketing tools that can help you reach your targeted audience. The essential tools involve a focus towards social media, website marketing, content optimization and several other approaches. Hence, it requires you to partner with a marketing expert to explore in detail more about the right tool for your brand.
However, while deciding on the selection of channels and tools, it is important to rely on a set marketing budget. Such a budget can help you plan your campaign and execute the strategy accordingly to achieve the maximum audience reach.
At this stage, the key concern area is how to decide on an appropriate performance marketing budget for your brand. Interacting with an experienced performance marketer can help you evaluate and decide on a budget. But being an entrepreneur, you need to decide on your brand need, your vision and the specific message that you want to deliver. Based on such factors you need to plan for a marketing budget on your own.
But this is just an overview of what essentials must be included while deciding on a performance marketing budget. Let’s take a deeper dive to understand more in-depth how to decide the final budget.
Factors to be considered
- Brand’s Vision and Goals
The primary focus area must be to decide on your brand’s vision and its goals in the marketplace. The vision is associated with the brand’s aim in the marketplace. For instance; being a startup you must have a term-bound goal. In the short term, you may plan to be a well-known regional brand, might move towards targeting the national market and then plan for international expansion.
Hence based on such a vision, the marketer needs to plan on campaign strategies that can aid in achieving the marketing goals. Such also acts out to be a base for planning a brand’s performance marketing campaign budget.
- Revenue Generation:
A key estimate regarding the revenue generation also needs to be made. At this stage, you need to take into consideration your business’s present revenue, as well as the anticipated revenue generation. Such is important for the brand to determine the proportion of the revenue that can be allocated for marketing activities. Also, conducting relevant industry analysis can help you plan a specific performance marketing strategy and understand how it can contribute towards revenue improvement.
- Fixed Expenses and Liquidity:
Being an entrepreneur, you need to plan intelligently on your business finances. Every business has a fixed investment structure to be followed. It includes the sources of finance from where the brand is generating funds and appropriate sources where it can be utilised. Hence, while planning on such an approach, it is important to consider the fixed expenses. Such fixed expenses are a major part of your investment strategy.
Further based on the fixed expenses, the asset liquidity and other factors, you need to decide on the maximum investment portion that you can allocate for marketing. Such can help you ensure that you can excel in the online market without stressing too much about investment.
- Customer Expectations:
While deciding on your performance marketing budget, you need to consider your customer expectations in the marketplace. Such expectations involve evaluating the market and customers’ attitudes towards the brand and certain essentials to be included in the campaign. For example; customers expect a modern-day fashion brand to have a valid presence on social media channels. A new-age brand is expected to follow the moment marketing strategies to be in trend.
Hence, the brands need to consider such expectations of customers towards the brand. Accordingly, specific elements are to be included and the budget needs to be decided accordingly.
- Consider Market Trends and Competitive Factors:
An essential factor that helps in deciding your performance marketing campaign budget is the existing market trend and competitive factors. The prime aim of performance marketing is to position your brand ahead of your competitors in the marketplace. Hence, to achieve such a goal, it is important to consider market trends and practices being adopted by the competitors.
Experienced performance marketers reflect that to be ahead of their competitors, the brand needs to invest in practices that are ahead of competitors’ practices. Such in the long run actively contributes towards achieving the defined goals.
- Test your Strategy:
The most essential aspect to be focused on before finalizing your marketing budget and campaign strategy is testing them for accurate results. Marketers need to test their marketing strategies before executing them. For instance; if the performance marketer is planning to keep the budget at the lower end, hence it is important to test for the potential success rate of the factor. If not then there is a need to make necessary shifts in the marketing budget and to act towards a higher budget.
Common Marketing Budget Issues and Challenges
Apart from the above-mentioned factors, several other challenges are to be considered while deciding on your brand’s performance marketing budget. These issues not only impact your marketing performance but also result in financial losses. The most common issues as highlighted by the leading performance marketers include:
- Not Conducting Proper Research:
The basic need of any marketing campaign is to conduct market research. Such research is important to ensure that the channels selected can deliver the expected results. You may end up investing in channels where you have a limited or smaller target audience. For instance; certain brands fail to make correct use of moment marketing, as they fail to properly align with the timing of the marketing trends. Such results in the loss of both the potential customers as well as ROAS.
- Focusing only on Acquisitions:
A major mistake that is being made by the brands is spending their budget only on customer acquisitions and neglecting the existing customers. A brand needs to split its marketing budget towards both new acquisitions as well as retaining/retargeting approaches. CAC is always high for a new-age brand, and the only way to lower is to work on word-of-mouth marketing. Hence, it is recommended that you offer benefits and discounts to existing customers. Such can help in effectively managing the performance marketing campaigns.
- Not adopting changes/transformations in performance marketing strategies:
A common error being made by the brands is their lack of approach towards adopting to the shifting market trends. The leading performance marketing company in India reflects that customer needs and interests shift with time. Hence it is significantly important to work on approaches to understand such a shift and to plan your campaigns accordingly.
- Failing to innovate/create:
The brand needs to work on innovative/creative approaches that can help in identifying an explored area of the market. Such is important to stand out from the competition. Hence, certain brands stress more on the marketing budget and aim to stick to more standardized approaches. Such in the long run can deliver results but due to failing to innovate it may not be able to surpass the competition.
- Trying Everything on Your Own:
Brands believe that just because they have cracked a unique product, they also know the social media and online channels well. As a result, they try to save on the cost of performance marketing by planning and executing strategies on their own. But when building a brand, you need to focus on a long-term business orientation, brand growth, and awareness. Hence, such can allow you to focus more on business growth and allocate the budgets accordingly.
The above-mentioned factors are just some of the most common errors or challenges that are being faced by brands or marketers. However, several others need to be considered while defining your marketing strategy. Hence, it is highly recommended to connect with the leading performance marketing company in India, so that they can guide you better.
Wrapping Up
Hope you are now aware of the approaches that can help you decide accurately on your brand’s performance marketing budget. Planning on the budget is a crucial step as it further helps to decide on expected results and ROAS strategy. If you are interested and want to know more, you must connect with the experienced performance marketing experts at Verve Online Marketing. We are the leading Performance Marketing Company in India, having a decade of experience working with brands across the global markets.
We can deliver performance marketing strategies tailored specifically to your brand’s needs and market preferences. Our Performance Marketers follow a unique approach to conducting relevant industry research and identifying an appropriate strategic approach for your brand. So what are you waiting for? Book your Consultation slot with our experienced marketers today.
