Let’s talk about marketing budgets. For something so fundamental, they can feel surprisingly overwhelming. How much should you spend? Where do you allocate funds? What if your CFO side-eyes your proposal like you just asked for their firstborn?

A well-planned marketing budget isn’t just about numbers—it’s about aligning resources with objectives, creating accountability, and setting your team up for success. With marketing budgets trending down in recent years, and a “do more with less” mentality becoming the status quo for many CMOs, all the more reason to ensure your budget is designed to maximize the likelihood of hitting goals and producing ROI.

Building a solid marketing budget is more than slapping numbers into a spreadsheet. It’s about strategy. In this guide, we break down how to build a marketing budget grounded in strategy, easy to explain, and designed to help your team achieve its goals while getting buy-in from the people who sign the checks. Plus, we’ve included a FREE chatbot survey cost calculator to aid in your market research planning.

Ready to plan smarter and stress less? Let’s roll!

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Step 1: Start with expectations and objectives

A great budget starts with clearly understanding what you’re trying to achieve. Before diving into the nitty-gritty of spreadsheets, take a step back and ask yourself:

• What are we trying to accomplish with this budget?
• What outcomes do we want to see?
• How will success be measured? (Spoiler: “Go viral” isn’t a metric.)
• Are our goals realistic for the resources we have?

Set clear expectations

When allocating funds, consider what your team can reasonably deliver and the timeline for seeing results. Be upfront about what certain costs mean for the team. For example:

• Deliverables: Paid ads might bring in clicks, but conversion rates will depend on your landing page quality. Will you need creative assets, analytics support, or ongoing testing?
• Realistic costs: Vendors, software, and campaigns rarely cost precisely what you expect. Make sure to do your homework and research pricing to avoid surprises later. Factor in contingencies!

Identify key objectives‍

Every dollar in your budget should connect to a specific goal and tie back to deliverables and results. Common objectives include:

• Increasing brand awareness
• Generating X% more leads
• Improving customer retention

This step helps prioritize spending. For example, if customer retention is key, allocate more funds towards audience research and loyalty programs versus splashy ads.

Knowing your objectives ensures your budget is focused and effective.

Step 2: Break down the costs

Marketing expenses can vary wildly based on your choices, but here’s how to break it down:

Understand the key cost drivers

1. Scope of work: Bigger projects mean bigger price tags. 
2. Channels: Paid ads, social media, email, and events each have different cost structures. 
3. Team/talent: Decide if you’ll rely on in-house staff, agencies, or freelancers.

Questions to consider

• What’s the average cost per campaign for this objective?
• Are there any recurring costs or fees like software subscriptions or agency retainers?
• Can we cut costs without cutting corners?
• How much should be set aside for unexpected needs?

Don’t forget a financial buffer

Marketing rarely goes perfectly according to plan. Every good budget needs guardrails. Translation: build a buffer for the unexpected. 

Adding a 10-15% contingency fund ensures you’re ready for surprises—whether it’s a hot new trend or a necessary campaign pivot. Review expenses quarterly to spot trends early.

Step 3: Get stakeholder buy-in

Even the best budget won’t fly without approval. Here’s how to present your marketing budget with confidence so that the right people are on board:

1. Focus on ROI: Highlight how each expense supports company goals and contributes to the bottom line. 
2. Highlight metrics: “Numbers people” want numbers, not jargon. Use metrics they care about, like CAC (Customer Acquisition Cost), LTV (Lifetime Value) and ROI (Return On Investment) to make your case.
3. ‍Be transparent: Outline your thought process so decision-makers understand how you arrived at the numbers.

The goal here is to build trust and get everyone on the same page before execution begins.

🌟 Bonus tip: Prepare for pushback with data. Stakeholders love a marketer who’s done their homework.

Step 4: Determine ownership

You’ve got the numbers down—now, who’s driving the plan? Accountability is everything!

Once your budget is approved, assign specific line items to team members or vendors. This creates accountability and ensures everything runs smoothly.

Use your budget as a living document to track spending and monitor progress throughout the year. This can be an excellent framework to establish team KPIs (Key Performance Indicators) and check in on achievements or points of struggle as well.

Take action: Build your market research budget today

Feeling ready to turn all this advice into action and start budgeting like a boss? With hundreds of free templates available online, choose your favorite and get started. Why reinvent the wheel when you don’t have to!

Pro Tip: Make sure to include a line item for market research in your budget. Understanding your audience before introducing a new product, rolling out a new service, or launching a new marketing campaign is essential to maximize every dollar spent thereafter.

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