How to Guide for Marketers

How to determine the size of your brand’s media budget

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In my chapter on how to make media decisions to break through the cluttered media world, we use six questions help you frame your media plan. We start with your brand’s budget size. Then, look at your brand’s core strength and how tightly connected your brand is with consumers. From there, identify which point on the consumer journey you wish to impact, where your consumers are most willing to engage your message and what media choices best fit with your creative execution.media

Always balance your media choices by looking at media efficiency, quality, impact, and fit with the brand. The efficiency of the media math starts with reach and frequency. Reach is the number or percentage of different households or people exposed to the ad at least once, over a specific period. Frequency is the number of times that household or person will be exposed to the ad within a particular period. Be careful to avoid relying on efficiency alone. You need to balance it with the quality of the media choices. As a guiding principle, I always set aside about 10 percent of my media budget to create a high impact to generate early attention to a new campaign or product innovation.

How strategy drives media choices

Use your strategic thinking to understand how much you can invest. Focus your limited resources on a distinct opportunity point. The reasons you would strategically invest in media include:  

  • Discovery of a new brand message you know will motivate consumers to buy your brand.
  • Identified change in consumer needs, motivations, or behaviors, which will benefit your brand.
  • Shift the competitive dynamic, with an opportunity to make gains or a necessity to defend.
  • Continue to fuel brand growth with a window to drive brand profits. 
  • New distribution channel you can use to move consumers through before competitors do.
  • The launch of a breakthrough product innovation offering a competitive advantage to your brand. 

To make the media investment pay off, you need to be able to drive a performance result that pays back with an  increase in brand power you can use in the future or an immediate increase in brand profit. 

Six factors to help guide you on the size of your media investment:

  1. Brand profit situation, looking at margin rates and the size of the business.
  2. Past media ROI projected forward as a forecast of the potential.
  3. Impact of your current creative advertising tracking results
  4. Future investment opportunities or future threats to battle.
  5. The degree of competitive pressures in the marketplace and their levels of media spend.
  6. The comparative opportunity cost for investing elsewhere.

Media budget levels

Zero-based marketing budgeting starts off each new year assuming all brand budgets are zero and the brand must prove their case to earn its budget level. 

While it makes perfect sense in theory, with 20 years of experience with marketing budgets, this is not an easy concept to implement. One risk I see is that a zero-based budget could lead to short-term and highly transactional advertising.

A brand needs to balance brand-building activities, which add to the long-term connection with consumers with transactional call-to-action messaging intended to trigger purchases. For instance, if you tell me “Buy two, get one free” for five straight years, your consumers will eventually forget why they should buy your product at all, let alone two. There is a degree of uncertainty in making investment decisions. Get comfortable with your instincts to balance the degree of ambiguity to make the smart decision.

Low budget focuses on blowfish type marketing

When you feel the risk/reward of the media investment is unknown, it might be wise to start with a smaller investment level. Use what I call a “blowfish” media plan. Among those you target, you appear to be a large brand. Pick a tight target market with a limited media choice or geographic focus to replicate how a more substantial media investment would appear. When the unknown is very high, get smarter by using test markets with various media spend levels to gain the necessary consumer response data before you make a full investment.

Medium Investment should use selective target choices

You should use a medium investment level when your brand faces only a couple of the media investment factors listed above, yet your brand has the size and margin to invest. With this level of spend, you should use a selective media plan by making smart choices of the target market who you know will respond to those media choices proven to pay back.

High investment level opens you up to mass or always on

You should use a high investment level when your brand faces many of the investment factors, including profitable brand, reliable messaging, product innovation, and an intensely competitive situation. You can afford to take a mass approach. However, just because you have a lot of money does not mean you should waste it. I still recommend using one lead media choice and then use support media to supplement. Figure out your lead paid media and your lead earned media to provide focus and alignment with your strategy.

One important consideration with any investment plan is to balance media spending and the creative production costs. Your brand’s working dollars are those investments that directly reach and influence the consumer. You can directly see the impact and measure the payback. Media is considered working dollars. This costing method is one of the reasons you do not want to spread your brand across too many media choices. If most of your brand’s advertising budget is spent making TV ads, billboards, and radio ads or paying for talent in the ads, then you will not have enough spending left to reach the consumer.  

Media is a business investment that showcases your brand story through creative execution to help connect your brand with consumers where consumers are most willing to engage, listen, think, feel, and act in ways that pay back your brand.

 

To learn more about this type of thinking, you should explore my new book, Beloved Brands.

With Beloved Brands, you will learn everything you need to know so you can build a brand that your consumers will love.

You will learn how to think strategically, define your brand with a positioning statement and a brand idea, write a brand plan everyone can follow, inspire smart and creative marketing execution and analyze the performance of your brand through a deep-dive business review.

Beloved Brands book

To order the e-book version or the paperback version from Amazon, click on this link: https://lnkd.in/eF-mYPe

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Beloved Brands: Who are we?

At Beloved Brands, our purpose is to help brands find a new pathway to growth. We believe that the more love your brand can generate with your most cherished consumers, the more power, growth, and profitability you will realize in the future.

We think the best solutions are likely inside you already, but struggle to come out. Our unique playbook tools are the backbone of our workshops. We bring our challenging voice to help you make decisions and refine every potential idea.

We start by defining a brand positioning statement, outlining the desired target, consumer benefits and support points the brand will stand behind. And then, we build a brand idea that is simple and unique enough to stand out in the clutter of the market, motivating enough to get consumers to engage, buy and build a loyal following with your brand.

We will help you write a strategic brand plan for the future, to get everyone in your organization to follow. It starts with an inspiring vision that pushes your team to imagine a brighter future. We use our strategic thinking tools to help you make strategic choices on where to allocate your brand’s limited resources.

Our brand playbook methodology will challenge you to unlock future growth for your brand

  1. Our deep-dive assessment process will give you the knowledge of the issues facing your brand, so you can build a smart plan to unleash future growth.
  2. Find a winning brand positioning statement that motivates consumers to buy, and gives you a competitive advantage to drive future growth.
  3. Create a brand idea to capture the minds and hearts of consumers, while inspiring and focusing your team to deliver greatness on the brand’s behalf.
  4. Build a brand plan to help you make smart focused decisions, so you can organize, steer, and inspire your team towards higher growth.
  5. Advise on advertising, to find creative that drives branded breakthrough and use a motivating messaging to set up long-term brand growth.
  6. Our brand training program will make your brand leaders smarter, so you have added confidence in their performance to drive brand growth.

To learn more about our coaching, click on this link: Beloved Brands Strategic Coaching

To learn more about our training programs, click on this link: Beloved Brands Training

If you need our help, email me at graham@beloved-brands.com or call me at 416 885 3911

You have my personal promise to help you solve your brand building challenges. I will give you new thinking, so you can unlock future growth for your brand.

 

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