How to Prepare Advertising Budget Template
It can’t be denied that advertising has so many facets. From public relations, social media management, to website’s design and content. All those are included in the advertising strategy. As it includes so many tools, expenses, and tasks, it can be difficult to monitor the money. Fortunately, you can always use an advertising budget template to keep an eye on them.
Preparing the Template
Before you go make or search for a template, you should know that there is no absolute formula in managing the advertising budget. Yes, there are general patterns you can take advantage of but when it comes to specifics, it is different from one business to another. Below, we listed several things to consider when you prepare an advertising budget template.
Things to Consider
First and foremost is, of course, the revenue. The total amount of money that businesses created shapes the template. For this, you will need to determine the gross revenue (the amount of money before being deducted by any expense) that your business brings in.
2. Business’ Age
1- to 5-year-old businesses spend more money on average than a 5+-year-old business. Next is the business’s age. How long has your business been in the market? How many customers do you have? If your business is new and doesn’t have any customers yet, you need to spend more on advertising.
3. Fixed Advertising Expenses
When preparing an advertising budget template, you should not only focus on the money that you want to spend. You should also focus on the money that you have to spend. Yes, you should start the template with fixed expenses like maintenance fees for the website, hosting costs, tool subscriptions and so on.
4. Customer Acquisition Cost
Knowing the cost to acquire a new customer will provide you with insight into how much money is needed to bring in customers.
5. Customer Lifetime Value
This is the amount of money that a brand gains from a customer over their period of doing business with the brand. This value is crucial, especially for new businesses as knowing the value helps to decide whether spending to bring in customers and still profit is possible
As you can see, things like revenue, business’ age, fixed advertising expenses, customer acquisition cost as well as customer lifetime value are important to consider when preparing the template for the advertising budget. Having an advertising budget template ready to use will help you tremendously in keeping an eye on various advertising-related tools, expenses, and tasks.