For many companies the fourth quarter makes half of the year. It is also when advertising gets more expensive, because everyone competes for the same holiday money. So the budget should be allocated by a plan, not by habit.
Start with the third quarter results
List the channels that brought leads and sales and calculate the cost of acquiring a customer in each. Do not look only at reach and likes: they are pleasant, but they do not pay the bills. Anything that has produced no result for two or three months in a row is a candidate for cutting.
Account for seasonality
By November and December both demand and cost per click rise. That means part of the budget is better spent earlier, in October, when the audience can be warmed up more cheaply. Creatives, copy and landing pages should be prepared in advance, because at the peak there will be no time left for them.
A simple split
This is not a law but a starting point you can adjust to your business:
- about 60% for what already works and brings money;
- about 30% for scaling the best channels and new segments;
- about 10% for experiments that may fail.
Set aside a separate reserve of 10-15% of the total. It will help if an unexpected opportunity appears or one channel suddenly becomes more expensive.
Do not forget your own customer base
Emails and messages to people who have already bought from you usually cost less than acquiring new ones. In the holiday season this is often the most profitable line of the budget.
Calendar by month
- October: preparing materials, testing messages, warming up the audience.
- November: the main peak, promotions, the largest share of budget.
- December: working with those who did not buy, gift offers, retention.
Check against the plan weekly
A quarterly budget is not a sentence. Once a week look at what was actually spent and what came back, and move money from weak channels to strong ones. It is better to shift 10% in mid-November than to sit until December with a campaign that is clearly failing.
How to measure the result
Pick three or four indicators and follow them weekly: cost per lead, revenue per unit of ad spend, share of repeat purchases. If you want to go deeper into strategy, see the article on digital marketing for small business and the one on setting up an ad campaign.
Frequently asked questions
What percentage of revenue should go to marketing?
There is no universal figure, it depends on the industry and the stage of the business. Rely on your own past results and safety margin.
Should I hand advertising over to an agency?
If you lack time and experience, yes, but agree on target indicators in advance. For example, services in this area are provided by Sharaf Media.