Marketing Budget Questions
What is a good Marketing Budget?
Typically companies are re-investing 10% of their gross revenue into marketing.
Your marketing budget depends on a variety of variables, including product-market fit and business objectives. If your target is to repidly scale up, consider investing north of 50% of your revenue into marketing.
How do you calculate digital marketing budget?
MARKETING BUDGET = REVENUE TARGET / AOV) x COST TO ACQUIRE
You should reverse engineer your marketing budget based on your revenue objectives, average order value, and cost to acquire your customers.
What is included in a Marketing Budget?
Every marketing expense should be taken into account to create a marketing budget.
A typical marketing budget includes the cost to create advertising collateral, media cost, technology cost, agency, freelancer or marketing-related human resources expenses.
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MARKETING BUDGET FORMULA: (REVENUE TARGET / AOV) x COST TO ACQUIRE
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