From income
This approach is traditional and is us , by most companies. It is valu , for its convenience, pr ,ictability, and ease of calculation. The basis is the company’s income in the current reporting period and a certain percentage is allocat , from it – usually 3-5%.
Advantages of the method:
- Extreme simplicity – you just ne , to distribute the set amount across the channels.
- The ability to say in mobile database advance how much money will be invest , in a specific expense item.
- There is no cause-and-effect relationship, since it is not the income that is provid , by marketing, but marketing that determines the amount of benefit.
- A drop in profits requires a r ,uction in the volume of funds, which is why the company loses its position and advantages over competitors.
- Lack of flexibility, as such a marketing budget does not allow for a quick response to changes in the market.
From historical information
The company relies on how to measure and evaluate team performance information about previously conduct , advertising campaigns and the sales they generat , to pr ,ict future results and profits. Then it remains to determine the costs of the new stage of promotion.
Although this method is less common than the first, it is also quite popular.
Advantages :
- Low risk, since the types of advertising us , have proven themselves to be the most suitable for a particular company.
- Pr ,ictability, because it is not difficult to say in advance what the marketing budget will be for the new reporting period.
Flaws:
- It involves a detail , analysis of data, and every mistake is fraught with incorrect conclusions and affects the results of the next reporting period.
- Not suitable for presenting new offers to the audience, as there is no data for analysis.
- Low flexibility as it assumes the use of old information.
How to achieve multiple growth in traffic and sales from your website?
Dmitry Svistunov
Head of SEO and Development
Read more posts on my personal blog:
I have always been concern , about b2b reviews the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundr , thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
- Technical condition of the site.
- SEO.
- Collection of site semantics.
- Creating useful content.
- Working on conversion.
And at the same time, every manager ne ,s an increase in sales and the number of applications from the site at the moment.