Marketing Budget Analysis

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Marketing Budget Analysis

With every local business there will come a time that you will have to look at budgeting for marketing expenses.  You can go it alone, using a various range of techniques that can produce results.  But if you are paying for advertisement services in various channels, you need to be aware of one important thing. 

Not All Leads Are Created Equal.

Whether you have been told or taught that you should spend x amount on marketing, understand that splitting up those funds equally between different channels may not be getting you the best return on the money that you have invested.  Because each channel will undoubtedly produce a different quantity of leads.   It is a good practice to have something in place so that you can review the returns over any given period of time.  It is powerful knowledge to understand what $1 of marketing funds produces in revenue for you.

The key is to track your Direct Responses and the source that brought them to you.  We often see forms or questions asked as to how we heard about this or where we found that online.  These are tracking forms that are used to give an impression of different channels of advertising to business owners.  We know that there may be returning customers included in the mix but these can be categorized as well on a form.  What you are interested in knowing is the number of leads coming from one of your channels.

As an example of channels, maybe you have television spots, radio spots, Facebook ads, Google ads, and billboards.  It is next to impossible to determine what new lead/customer came from what channel.  Unless you are tracking them.  

If you tracked them and knew that google ads were out-performing radio spots, then you have a decision to make.  We would not recommend stopping any channel just because it doesn't produce the highest return.  But we might recommend you redirect some more funds from your budget to one that produces more leads.  If Radio produced 10 leads and Google Ads produced 30 for the same amount spent; well, we think it is clear that Google Ads may give you a better return on your investment by just shifting a bit of funding out of Radio.


If you are interested in more information on how to analyse these returns, we would love to send you an example in more detail.  Or even information on how to set up tracking for the different channels, we can give you suggestions.

Just give us a call at 780.257.4731 or complete the webform here.  We will get back to you..

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