Will Roberts | 28 November 2024

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Planning your marketing budget for 2025 can feel like navigating uncharted waters. With evolving trends, new technologies, and changing consumer behaviours, ensuring every pound you spend works hard to deliver results is essential. This guide will help you plan your marketing budget strategically, ensuring it aligns with your business goals and sets you up for success.

1. Analyse Last Year’s Performance

Start by reviewing how your marketing budget performed last year. Identify which campaigns and channels delivered strong results and which underperformed. Were there missed opportunities that could have been leveraged? Look beyond surface-level metrics like clicks and impressions; focus on conversions, customer lifetime value, and how campaigns contributed to overarching business goals.

If you can’t measure last year’s performance, this should be a top priority for 2025. Implement tools and processes to track key metrics, as most areas of digital marketing—from paid media to email campaigns—should be trackable. Data-driven insights are essential for making informed decisions.

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2. Don’t Rinse and Repeat — Unless There’s a Good Reason

Marketing isn’t static, and neither should your budget be. While it may seem easy to replicate last year’s strategy, consider how much has changed in the marketing landscape. Are your target customers using new platforms? Have algorithms or ad formats evolved? Is AI presenting opportunities to enhance personalisation or efficiency?

Instead of copying and pasting your 2024 plan, adapt it to align with current trends and customer expectations. Retain what worked well but experiment with new channels or tactics to remain competitive. Flexibility and forward-thinking will keep your strategy fresh and impactful.

Taking this one step further, we encourage you to allocate a small portion of your budget to testing new channels or strategies. Experimenting with emerging platforms, tools, or campaign types can uncover untapped opportunities and give you a competitive edge. Even a modest investment in experimentation can provide valuable insights, helping you discover what resonates with your audience and refine your strategy for maximum impact.

3. Strike the Right Balance Between Brand and Acquisition

Allocating budget between brand awareness and acquisition campaigns is often challenging. While acquisition delivers quicker, measurable results, brand awareness builds long-term trust and future sales. A common recommendation is the 60/40 split between brand-building and performance marketing, as suggested by industry experts Binet and Field.

Brand awareness should be seen as an investment, not a cost. Strong branding supports your acquisition efforts by making campaigns more effective. For example, a customer familiar with your brand is more likely to convert when served a paid ad or email campaign.

4. Prioritise Trackable Activities

To demonstrate ROI, focus on activities that can be tracked and measured. Digital channels like paid media, email marketing, and SEO offer clear metrics, such as click-through rates, conversions, and revenue impact. These insights help you optimise campaigns and justify budget allocation.

If traditional channels like billboards or print ads are part of your strategy, integrate tracking mechanisms like QR codes, unique URLs, or dedicated phone numbers. The more visibility you have over your results, the better you’ll understand your campaign’s success—and the more informed your future decisions will be.

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5. Prepare for Contingencies

Even the most well-planned budgets can face unexpected challenges. Market conditions, competitor activity, and emerging trends can quickly shift priorities. Setting aside 5–15% of your budget as a contingency fund allows you to adapt without derailing your strategy.

This flexibility is especially important in today’s fast-paced environment, where digital platforms and consumer behaviours change rapidly. A contingency fund isn’t just for emergencies—it can also allow you to seize opportunities, such as testing a new ad platform or responding to a viral trend. Agility is key to staying ahead.

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How WebBox Can Help You Plan Your 2025 Marketing Budget

At WebBox, we understand the challenges marketing directors and managers face when planning budgets. Our team has years of experience helping businesses in sectors like Health, Sport, and Leisure shape their strategies to maximise ROI.

Whether you’re looking to refine your paid media campaigns, build a website that converts, or create a balanced marketing strategy, we’re here to help.