How to Plan Media Expenditure for Your Business
Media Budget is the expenditure limits of an organization for marketing their products and services via broadcast, print or other kind of media. Media buyers are highly skilled in placing ads of the brands on the right place and in front of the right audience. Media buyers are marketers who take projects from the businesses to promote it effectively with the minimum cost possible and with the right audience on the right time.
These media buyers are skilled in negotiating the advertising costs on various platforms whether it is radio ads, TV ads, and magazine or newspaper ads, or billboard ads. However, as the traditional marketing is no longer that popular, brands need to adapt their media budget with online advertisements. In this article, you are about to learn how to manage and optimize your media budget for digital marketing.
So, without any further delays, let’s dive in!
How to Plan Media Expenditure for Your Business?
Media Spending is the allocated budget for the company’s marketing practices. Most businesses don’t plan their media budget with that much of care and randomly assign an amount to the media buyers. This makes media buyers relaxed about the assets of the company allocated for advertisement. In the result, the company doesn’t get the effective ROI that it should get after spending on professional advertisements.
Other organizations set a maximum advertisement cost for all of their products so that the media buyers don’t go further than the company’s expenditure on marketing.
In some companies, a unique kind of planning is used to determine their media budget. They allocate a particular percentage from their overall income for the marketing expenditure.
On the other hand, some businesses do a thorough research on their competitors and then try to match their media budget with them. Some do the media budget planning according to the type of product they sell, brand’s objectives, and other aspects.
This is how brands determine their media budget for marketing their products and services to the targeted audience.
The Media Mix
Media Mix stands for the communication sources your brand uses to advertise itself to the consumers. This involves various types of traditional marketing methods such as print media, broadcast ads, and out-of-home advertising.
Print media includes newspaper, magazine, publications, and direct mail marketing.
Broadcast involves advertising your brand via TV, radio, or other kind of ads typically using electronic devices excluding internet ads.
Outdoor ads or out-of-home ads includes marketing with billboards, banner ads on cabs, buses or other transport. While travelling in Metro, you might have seen many ad posters on the station as well as on the train itself. It is called outdoor advertisements.
Modern Media Categories
Haven’t heard about digital marketing up until now? You might probably know what it is and how well it is performing these days. It has outplayed every kind of traditional marketing strategies ever created. Online marketing or internet marketing includes advertising via internet media channels such as search engines, social media platforms, in-app ads, etc.
How to Set an Optimized Media Budget
As discussed before, randomly defining the whole media budget can lead to lower return on investment.
You need to ensure that how much you will invest on traditional marketing and its every aspect as stated above. Once you are done with the media mix budget, you need to determine how much you can spend on digital marketing and its every pillar or method. Brands can analyze the performance of their previous marketing campaigns and while analyzing they can focus on the methods that are effectively driving sales or at least leads. Besides that, you can see what are your goals while running media campaigns. For example, if a brand wants to focus more on increasing its online presence and brand awareness, then they might want to spend more on social media marketing and less on sales-driving ads.