Many small businesses find that determining their marketing budget is an afterthought. Initially, it can seem daunting and futile to spend money on marketing or advertising costs. However, brand exposure and strategic targeting are essential first steps to growth. Therefore, it's best to plan your marketing budget sooner than later.
But where should you begin? How can you make sure you get the most from your marketing dollars? AI tools and processes can help with this.
Artificial intelligence, also known as Artificial Intelligence, is a technology that allows machines to perform the same tasks as humans. AI, or Machine Learning, can help you channel your marketing spend in the right direction to increase your return on investment (ROI).
Let's start with the basics before we how AI tools can help us plan our marketing budget.
Your marketing budget includes all expenses you plan to spend on such activities as:
Simply put, your marketing budget should include everything and everyone that contributes to the promotion of your company.
To make money, you must spend money. High earnings are directly proportional to investment. You can't expect to make more income if you stay in your comfort zone.
Marketing is an investment that helps you acquire more customers and generate more revenue.
Here are the top five reasons you should have a marketing budget.
Marketing budgets influence how you establish goals and key performance indicators (KPIs). You can't measure the success of your business without KPIs.
Marketing can bring in new clients for your business. Marketing can bring new clients to your business if you don't prioritize and set a budget.
Your competitors are already advertising to customers. It makes it necessary to respond accordingly. You can use industry benchmarks to get a good idea of how much your industry is spending.
It will facilitate better coordination between your marketing team and the contracted agency. It makes it easier to share resources and collaborate with other departments within your company by having budgetary goals and guidelines. In addition, higher productivity will be possible with better coordination.
A preliminary budget, just like your operational and sales expenses, can help you plan and achieve your goals for the next month, quarter and year.
You will need to plan your marketing budget and the campaigns and channels to raise funding. It will look like you don't have a plan or a budget for a pitch meeting.
It is essential to ensure that your marketing budget does not go unutilized. You can optimize your marketing budget by using AI to accomplish tasks that directly impact it.
These are just a few of the ways that AI can help with your marketing budget decision making
The key to effective advertising is choosing the right channel. Your marketing campaigns won't succeed if you choose a platform that isn't relevant to your target audience.
Platforms such as Mercato already use AI to provide geo-optimized marketing through multiple digital channels to drive customers towards their online store.
Programmatic ad platforms employ AI and ML to make the best ad choices at the correct time. Automated bids are determined based on many factors, such as the buyer persona, location, buyer intent, purchase history, and previous purchases. AI tools can automatically choose the right advertising channel and allocate budgets for it.
Adam, a complete marketing platform that allows you to run multiple campaigns from one platform, is another option. You can automate all media buying processes on channels based on the personas and locations of your target audience. AI can power features such as autonomous targeting and cross channel execution. AI automatically targets the most preferred channel based on the KPIs set and available performance data.
Do it yourself
You can still do this manually if spending money on an automated advertising platform is not feasible for your business. Although it will require more effort to set up and use, you can still make the most of computerized systems in Google Ads, Facebook and Bing.
Keep in mind that the automation process will require you to pay attention to your ads. It is not as difficult as you might think. It will take some time, some trial and error, and the willingness to veto any underperforming items.
AI can detect which channels are performing best and adjust marketing spend accordingly.
Let's say that Google Ads generate the best ROI between Facebook Ads and Google Ads. Smart AI tools can help increase the budget for AI Ads and reduce the Facebook Ad Spend.
You might also want to reduce your marketing spending. For example, you can run Google Ads with a total budget but reduce your Facebook ad budget by half.
Next allows you to link your campaign advertising accounts with the Adext AI dashboard and predict the conversions. It can pick up to 10 different budgets per day and optimize your campaigns according to your goals. You can also work with the ad dashboards on each platform to determine the most impactful areas of your spending.
Marketing mix modelling, a statistical analysis technique that determines the impact of multiple marketing strategies on different channels to predict sales, is called marketing mix modelling.
Each business has lots of customer data stored in CRMs and other tools to interact with prospects. It is called "Big Data." But AI can't make this big data useful. AI tools can identify the marketing messages that convince your customers to purchase a product. AI platforms can automatically switch between channels and messages to achieve the best advertising ROI.
Pattern89 allows you to simulate your ads campaigns and dry-run them to determine which campaigns are most successful before they go live. It is easy to decide how much money you need to achieve your desired result.
Companies can leverage influencer marketing to increase their brand value. Micro- and macro-influencers can be effective in supporting a brand's appearance.
AI can be beneficial in identifying influencers that are most likely to support your cause. Therefore, you can set your influencer marketing budget to ensure that you aren't spending too much on influencers.
IBM Watson Personality Insights, for example, is a tool that allows you to understand how influencers think and react. This tool can save you time and avoid misaligned relationships. As a result, you will be more likely to find the right person or team to help you build your brand.
It doesn't matter if you don't know what you are doing. Data intelligence allows you to extract valuable information from multiple data sources and make the most of your marketing efforts.
Import.io allows you to compile all dates into spreadsheets to identify areas that need improvement and adjust your marketing budgets. You can also use the tool to gather reviews on the internet to get a better idea of your brand's reputation. You can also extract keywords-based data from competitor pages to help you set a budget.
You can do this using tools you already have, like Google Analytics. Although it will require more work upfront to automate, it is cost-effective to optimize your marketing budget while still gaining valuable insights.
Artificial intelligence is no longer a futuristic term but a necessity. Businesses are now using AI and Machine Learning to boost their marketing campaigns. You can use AI to increase sales and optimize marketing spend, even if your business is small.
It is a great way to market your business. However, it should be something that you think about early on and keep in mind. You can quickly identify the best platforms and processes for your business with a bit of effort and the willingness to test them all. Then, you can start small and build a plan for scaling up as you achieve success. Soon, you will have a strategy and budget that works with your overall business plan.
Disclaimer. The opinions and views expressed in this article are the authors Shalom Lamm.