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Optimal Allocation of Marketing Budget: A Practical Guide for Businesses

Optimal Allocation of Marketing Budget: A Practical Guide for Businesses

Optimal Allocation of Marketing Budget: A Practical Guide for Businesses

Effective allocation of the marketing budget is a pivotal factor for the success of any company. The decision regarding how much percentage of revenue should be allocated to advertising and how to distribute this budget across various channels and initiatives can significantly impact the attainment of business objectives. In this concise article, we present a practical guide that will aid businesses in approaching this challenge strategically and efficiently.

Step 1: Determining the Marketing Budget Percentage

While there isn’t a universal magic number, a popular guideline suggests allocating between 5% to 15% of total revenue for marketing endeavors. New businesses or those operating in competitive industries might choose to focus on the higher end of this spectrum to gain visibility and market share. It’s also crucial to monitor investment effectiveness and adjust the budget percentage based on outcomes.

Step 2: Understanding Customer Personas

Before embarking on budget allocation, a comprehensive understanding of the target audience’s personas is essential. What are their preferences, purchasing behaviors, and where do they spend their time online and offline? This insight will assist in selecting suitable channels and marketing strategies.

Step 3: Selecting Appropriate Marketing Channels

When choosing suitable marketing channels, considering the diversity of available options to maximize efficacy in reaching the target audience is imperative. Below, we detail several important marketing channels that can be incorporated into the budget strategy:

  • Television Advertising (TV): Television remains a potent medium, particularly for campaigns aimed at building brand awareness on a significant scale. TV advertising enables reaching a broad audience simultaneously. However, it’s important to remember that TV advertising can be costly, thus careful analysis is advised to ensure alignment with your company’s objectives and target audience.
  • Radio Advertising: Radio advertising can effectively reach a local or specific audience group. Often, it comes with lower costs compared to TV advertising and can serve as an excellent complement to an overarching marketing strategy.
  • Out-of-Home Advertising (OOH): Encompasses advertisements placed in the public space, such as: ads on buses and inside buses, wrapping of trams and other forms of public transportation, parcel lockers, shopping galleries, stores, billboards, large-format screens, bus stop ads, and in the subway. Contemporary strategies also include targeted advertising efforts, such as ads in specific venues like medical facilities or educational institutions, tailoring the message to distinct target groups.

  • OOH Advertising aims to bolster the brand’s position in society’s perception through the strategic placement of ads in spaces traversed by people on a daily basis. A vital aspect is the recognition that modern lifestyles shape the activities of the majority beyond their residential spaces. This results from the dynamic rituals of daily life, during which journeys and outdoor activities take place. As a result, outdoor advertising harnesses this reality, creating desired points of brand contact with potential customers in natural contexts. The approach to OOH advertising is aligned with the significant societal mobility trend, where a substantial portion of time is spent away from home. This is pivotal for marketing strategies, as it facilitates reaching customers when they are active and receptive to new stimuli. OOH advertising thus becomes a quasi-partner in daily situations, forging organic brand touchpoints and yielding benefits in the form of heightened awareness and interaction.

  • Online Advertising: In contemporary times, online advertising plays a pivotal role in marketing. It encompasses paid ads in search engines (Google Ads), social media ads (Facebook Ads, Instagram Ads, LinkedIn Ads), display ads, and more. Online advertising offers precise targeting tools, enabling reaching specific target groups.
  • Content Marketing and Social Media: Crafting valuable content on blogs, social media, and other online platforms can aid in building customer engagement and brand awareness.
  • SEO (Search Engine Optimization): Ensuring your website is well-optimized for search engines is crucial. This assists in organic search ranking and visibility enhancement.
  • Other Channels: Depending on your industry and target audience, considering other channels such as influencer marketing, webinars, trade shows, and industry events may also be worthwhile.

Step 4: Testing and Optimization

Regardless of the chosen channels, continuous monitoring of outcomes is crucial. Analyze which actions yield the best results and focus on them. Conduct A/B tests, experiment with various content and strategies to consistently refine your actions.


Marketing budget allocation is a dynamic process that requires flexibility and continual adaptation to changing market conditions and customer needs. Effective marketing isn’t just about finances, but also about strategy, creativity, and understanding your target audience. The pursuit of constant improvement and innovation is key to achieving success in today’s competitive business environment

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BE Media

We provide comprehensive service and implementation of Out-of-home advertising . Thanks to years of experience we know where to find your potential customers and what means to use to draw the attention to your advertising. The confidence that brands have in us is not unfounded – we simply implement effective campaigns. Despite the multitude of media in various parts of the city, we are not obtrusive. Our adverts are not very invasive – both for the user and for the urban landscape. They do not irritate but intrigue the audience. In our opinion, this is the best way for the campaign to be saved in the memory of a potential client.