The year 2024 is just around the corner, and you all know what that means. While Santa Claus is preparing presents, you’re preparing your marketing budgets for the next year.

Deciding where to allocate your marketing budget is often the trickiest but most crucial decision of the year. Despite its significance, it’s frequently overlooked because companies don’t always see direct ROI from various marketing initiatives, even if they are effective. We’ll guide you on how to make the right decisions for your marketing budget, sharing tips from our recent podcast, “Planning Your Marketing Budget for 2024.”

Budgeting Foundations

1. Find the Right Partner

Hiring your friends or family may seem cost-effective, but it often leads to trouble. We’re not saying don’t hire your cousin but we are saying that if you are looking for an SEO expert you probably don’t just want to hire someone who “writes well.” Choosing someone without the right qualifications can end up wasting the marketing budget on fixing mistakes. The solution is simple: prioritize qualifications and trust when selecting a partner to ensure a successful marketing strategy without unnecessary expenses.

2. Make Data-Driven Decisions

Always remember: let data guide your marketing plans. This means that you should start looking at your analytics. If you’re just starting and feeling unsure, begin with social media data and then move to your website and so on. Eliminate anything ineffective and retain what works because, if it’s not yielding results, why invest time and money in it? Once you actually know what is working for your company, you can use this data to shape your strategies for 2024.

3. Adapt to Change

I think we all need to hear this in our businesses: it’s alright to make changes! If the plans you made in January aren’t serving you mid-year, changing them doesn’t mean you’re quitting; it means you’re paying attention to your data and your business. That’s a positive thing! So, if something isn’t working or needs adjusting, have a meeting with your team and figure out ways to change and reach the goal. Instead of sticking to what worked before, focus on building for the future. This means being open to trying new things, questioning the usual way of doing things, and embracing change.

4. Empowering the Team

Working with your team to find solutions is crucial because your employees likely have ideas to improve the business. The more you utilize your team’s strengths and provide the necessary support and resources, the better your business outcomes will be.

These 4 elements will help you set the stage for a successful marketing budget. Before you even hop into the next section where we talk about actual dollars and cents make sure you have found the right partner, you are watching the data, you are adapting to change and you are empowering your team. Once you’ve got those things in place, you can look at your budget and make choices!

Creating a Video Marketing Budget

Now onto the part that you have been eagerly waiting for, creating a marketing budget. In this section we are going to show you some things you should think about before deciding on your budget and how to allocate your budget and resources once you have found your magic number. 

Marketing Budget Breakdown

Many companies allocate around 10-11% of their overall revenue to their marketing efforts. Here’s a breakdown of how you might consider dividing your marketing budget:

• 70% of the budget should be directed towards proven strategies that are geared towards conversion. This includes investments in your website, video production, paid advertising, and paid social media campaigns, all of which contribute to brand awareness and have a track record of converting customers.
• 20% of your budget to explore new strategies for growth. This might involve launching a new product or service, experimenting with different distribution methods like video or podcasts, and investing in content creation and testing.
• Reserve 10% of your budget for experimental efforts. This could encompass sponsorships, participation in speaking engagements, trade show events, and unique content initiatives. These events may carry some uncertainty but can lead to exciting opportunities.

Regardless of your budget allocation, content, resources, and data are essential components of a successful marketing strategy. Since most of your budget will be allocated to proven strategies (or the 70% strategies), this section is designed to help you navigate planning your budget, specifically your video marketing budget. 

When seeking assistance from a video marketing agency, they will likely inquire about specific details to formulate your budget effectively. These questions may include:

• • What is the primary business objective of your project?
  • What will each video target for audience engagement?
  • Does the video project include live action filing or animation? 
  • How many shooting locations are required? 
  • How many cameras, equipment, and accessories are necessary?
  • How many videos can we accomplish during one filming day?
  • Will the video projects require employees or higher talent?
  • What design and branding elements need to be included? 
  • Will the video need  animation or motion graphics?
  • How many video deliverables are expected?

The responses to these questions will ultimately shape your video production budget.

Every video we create is crafted with a spend-smart approach. This means helping you maximize your budget based on your strategy. Do you need social videos? Great! We can put the majority of your budget into getting as many social videos as possible while still getting you a brand video that you wanted. Do you need multiple videos but you have a small budget? We can help you build a content library for the rest of your year so you can use one video shoot to capture multiple videos. Whatever you are searching for we will ensure that we maximize your budget as much as possible so that you can get the most value out of your money.

We have worked with many companies like Red Thinking Agency to create videos for their clients… we are trusted content creators for organizations seeking external partners to enhance their marketing efforts. If you haven’t begun planning for your 2024 marketing strategy and budget, it’s time to get started! Make this year the one where, whether you face budget constraints or not, you break out of the routine marketing tactics and explore new horizons.