Your Media Budget: It’s Not Just What You Spend; It’s How You Spend

Marketing

April 24, 2024

Your Media Budget: It’s Not Just What You Spend; It’s How You Spend

By Ty Heath, Director at The B2B Institute, LinkedIn.

This blog post is part of the INBOUND Speaker Insights series: where industry leaders share their expertise, actionable tips, and innovative strategies for success in sales, marketing, leadership, and more.

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Let's face it, every marketer dreams of a bottomless budget. Alas, we have to face reality. The good news is that it isn't just what you spend; it's how you spend when it comes to your brand budget. In the competitive world of marketing, understanding three key principles: effectiveness, evenness, and efficiency—can be your brand's secret weapon.

Think of it like a three-legged stool:

Effectiveness: Imagine your ad reaching as many potential customers as possible. That's effectiveness! The more people who see your message, the better chance you have of being remembered and, ultimately, driving sales.
Evenness: Consistent brand presence throughout the year is key. Consistent advertising keeps your brand top-of-mind and helps you reach more people over time. Imagine if you only saw your favorite store during the holidays—wouldn't you forget about them most of the year?
Efficiency: Every marketer wants to stretch their budget as far as it can go. Here's where efficiency shines. It's about getting the most bang for your buck, ensuring each dollar spent contributes meaningfully to your goals. Think of it as the wise older sibling of effectiveness—making sure your spending is smart!

Let's explore each principle.

EFFECTIVENESS: SPEAK LOUDER THAN YOUR COMPETITORS

Imagine a crowded room where everyone's vying for attention. To be heard, you need to raise your voice! In marketing terms, this translates to share of voice (SOV). The more people hear your brand message, the higher your SOV, and the more likely you are to win over customers.

Here's the secret sauce: Brands that invest in a higher SOV tend to see a bigger share of the market (SOM). So, how do you measure up? Look at how many potential customers you're reaching compared to your competitors. By strategically increasing your SOV, you'll grab attention and influence more people to choose you.

EVENNESS: CONSISTENCY IS KEY

Unless you're selling Halloween costumes (we see you, Spirit Halloween!), your sales likely happen year-round. Spreading your advertising budget evenly ensures a steady stream of outreach to potential customers, keeping your brand fresh in their minds. This consistent approach is way more effective than sporadic bursts of advertising that leave gaps for competitors to swoop in.

Here's a tip: For bigger brands, analyze your sales data alongside ad costs to find areas for savings. During peak seasons, adjust your spending to maximize engagement. Smaller brands? Focus on steady growth by gradually increasing your budget and maintaining a consistent presence. A good rule of thumb is to allocate a small portion of your budget each week for year-round brand awareness.

EFFICIENCY: EVERY DOLLAR COUNTS

Effectiveness might be the rockstar, but efficiency is the savvy sidekick that ensures your marketing dollars are working hard. Just because you can blast out a ton of ads doesn't mean you should! The goal is to achieve your goals while spending wisely; that's the sweet spot.

Here's where cost per reach (CPR) comes in. This metric helps you understand how efficiently your budget is being used to reach the right audience. Think of it like a price tag for showing your ad to a single person. By analyzing your CPR, you can fine-tune your targeting to maximize efficiency. Super-specific targeting might seem great, but it can be expensive! Often, focusing on broader categories can be more effective in the long run.

THE KEY TAKEAWAY?

By embracing all three principles—effectiveness, evenness, and efficiency—you'll set your brand on a path to sustained growth. Remember, it's not just what you spend, it's how you spend.

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Ty Heath is Director at the B2B Institute, a think tank at LinkedIn that studies the laws of growth in B2B. You can follow Ty on LinkedIn.