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How to create a budget for an account-based marketing campaign

November 17, 2023 | Jimit Mehta

Account-based marketing (ABM) is a targeted, personalized marketing approach that focuses on specific accounts rather than broad segments of the market. It requires a targeted and customized approach to reach the right people at the right accounts, and budgeting is an important part of the process. In this article, we'll explore how to create a budget for an ABM campaign and discuss key considerations to keep in mind. By following these tips, you can ensure that your ABM campaign is well-funded and able to deliver results.

Setting campaign goals and determining budget

Setting campaign goals and determining budget are important steps in the process of planning and executing a marketing campaign.

Campaign goals are the specific objectives that you want to achieve through your marketing efforts. These goals could be related to brand awareness, lead generation, sales, or any other desired outcome. It is important to have clear, measurable goals for your campaign so that you can track your progress and determine whether the campaign is successful.

To determine your campaign budget, you will need to consider the costs associated with executing the campaign, such as creative development, media buying, production, and distribution. You should also consider any additional resources that may be needed, such as staff time and external contractors.

Once you have a clear understanding of your campaign goals and the resources required to achieve them, you can determine the budget that will be needed to execute the campaign. It is important to allocate your budget wisely and ensure that it is aligned with your goals and the expected return on investment.

It may also be helpful to conduct market research to understand the costs of similar campaigns in your industry, and to benchmark your budget against industry standards. This can help you to make informed decisions about the level of investment required to achieve your campaign goals.

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Identifying target audience and determining budget allocation

Identifying the target audience and determining budget allocation are important steps in the marketing process. Here's a more detailed explanation of each:

  1. Identifying the target audience: A target audience is the group of consumers that a business is trying to reach through its marketing efforts. Identifying the target audience involves understanding who the product or service is most suitable for, and what their needs, interests, and behaviors are. This information helps businesses tailor their marketing strategies to appeal to their target audience more effectively.

  2. Determining budget allocation: Budget allocation refers to the process of deciding how much money to allocate to each marketing activity. This involves considering the overall marketing budget and then deciding how much of it should be spent on each specific activity, such as advertising, promotions, public relations, and market research. Budget allocation is important because it helps businesses prioritize their marketing efforts and allocate resources in a way that maximizes the return on investment.

Overall, identifying the target audience and determining budget allocation are crucial steps in the marketing process because they help businesses focus their efforts on the right group of consumers and allocate resources in a way that is most likely to achieve their marketing goals.

Researching and selecting appropriate marketing channels

Researching and selecting appropriate marketing channels refers to the process of identifying and evaluating various channels that a business can use to reach its target audience and promote its products or services. This involves considering various factors such as the target audience, the type of product or service being marketed, the budget available for marketing, and the goals and objectives of the marketing campaign.

There are many different marketing channels that businesses can choose from, including traditional channels such as television, radio, and print media, as well as digital channels such as social media, email marketing, and search engine marketing.

To research and select appropriate marketing channels, businesses typically follow the following steps:

  1. Define the target audience: The first step in selecting appropriate marketing channels is to identify the target audience for the marketing campaign. This involves considering factors such as age, gender, location, interests, and income level.

  2. Identify the marketing objectives: The next step is to determine the goals and objectives of the marketing campaign. This could include generating leads, increasing brand awareness, driving sales, or building customer loyalty.

  3. Evaluate available marketing channels: Once the target audience and marketing objectives have been identified, businesses can begin evaluating the various marketing channels that are available to them. This involves considering the pros and cons of each channel, as well as the potential reach and effectiveness of each channel for the specific target audience and marketing objectives.

  4. Select the most appropriate marketing channels: Based on the evaluation of the available marketing channels, businesses can select the channels that are most likely to be effective in reaching the target audience and achieving the marketing objectives.

  5. Implement the marketing campaign: Once the marketing channels have been selected, businesses can implement their marketing campaigns by creating marketing materials and messages that are tailored to the selected channels and target audience.

It is important for businesses to continually monitor and evaluate the effectiveness of their marketing campaigns, and to make adjustments as needed to ensure that they are achieving their desired results.

Estimating costs for marketing tactics and materials

Estimating the costs for marketing tactics and materials is an important part of creating a marketing plan and budget. It involves forecasting the expenses that will be incurred in order to implement specific marketing activities and produce marketing materials. This can include the costs of creative development, media buying, production, and distribution of marketing materials.

Here are some steps you can follow to estimate the costs for marketing tactics and materials:

  1. Identify the marketing tactics you want to use: This could include tactics such as social media advertising, email marketing, event sponsorship, or content marketing.

  2. Determine the resources needed for each tactic: Consider the staff, technology, and other resources that will be required to execute each marketing tactic.

  3. Research the costs of the resources: Look into the costs of hiring staff, purchasing software or equipment, or other resources that will be needed.

  4. Calculate the total cost of each tactic: Add up the costs of all the resources needed to execute the tactic to determine the total cost.

  5. Repeat the process for each marketing tactic: Do this for every marketing tactic you are considering, so you have a complete picture of the costs involved in your marketing plan.

  6. Consider the length of time the tactic will be in place: If the tactic is a one-time event, the cost will be relatively straightforward to calculate. If it is an ongoing tactic, such as social media advertising, you will need to consider the length of time it will be in place and adjust your cost estimates accordingly.

  7. Don't forget about indirect costs: In addition to direct costs, you should also consider indirect costs such as overhead, insurance, and taxes that may impact the total cost of your marketing efforts.

By carefully estimating the costs for marketing tactics and materials, you can create a realistic marketing budget that helps you achieve your business goals while staying within your financial constraints.

Allocating budget for team resources and tools

Allocating budget for team resources and tools is the process of determining how much money should be set aside to purchase or access resources and tools that will be used by a team in order to complete tasks and projects. These resources and tools can include things like hardware (e.g. computers, laptops, tablets), software (e.g. project management tools, design software), and other supplies (e.g. office supplies, marketing materials).

There are a few key considerations that go into allocating budget for team resources and tools:

  1. The needs of the team: The first step in allocating budget is to determine what resources and tools the team needs in order to be effective. This might include things like new software licenses, hardware upgrades, or specialized equipment.

  2. The availability of budget: The amount of money that is available to be spent on resources and tools will often be limited, so it's important to allocate the budget in a way that maximizes the value it provides to the team.

  3. The potential return on investment: When deciding how to allocate budget, it's important to consider the potential ROI of each resource or tool. This can help to ensure that the budget is being used in a way that will provide the most value to the team and the organization as a whole.

  4. The timing of the purchase: In some cases, it may be more cost-effective to wait to make a purchase until a particular resource or tool is needed, rather than buying it upfront. This can help to ensure that the budget is being used efficiently.

Overall, allocating budget for team resources and tools is an important task that requires careful planning and consideration in order to ensure that the team has the resources it needs to be effective and efficient.

Setting benchmarks and tracking budget performance

Setting benchmarks and tracking budget performance are important activities for managing a budget effectively.

A benchmark is a standard or point of reference against which the performance of a budget can be measured. It can be a target or goal that is set in advance, such as a specific level of revenue or profit that the budget is intended to achieve. Setting benchmarks helps to provide a clear and measurable way to assess the success or failure of the budget, and to identify areas where improvements or adjustments may be needed.

Tracking budget performance involves regularly reviewing and analyzing the actual results of the budget against the benchmarks that have been set. This allows for a comparison of the budget's actual performance against the targets that were set, and can help to identify any deviations or variances between the two. Tracking budget performance also helps to identify trends or patterns in the budget's performance over time, which can be useful for making informed decisions about future budget planning.

Overall, setting benchmarks and tracking budget performance are important for ensuring that a budget is being implemented and managed effectively, and for identifying and addressing any issues or challenges that may arise.

Adjusting budget as needed throughout the campaign.

Adjusting a budget as needed throughout a campaign refers to the process of continually reviewing and modifying the allocated budget for a marketing or advertising campaign based on its performance and the results it is achieving. This can involve increasing or decreasing the budget in order to optimize the campaign and ensure that it is meeting its objectives effectively.

There are several reasons why it may be necessary to adjust the budget during a campaign. For example, if the campaign is not generating the desired results, it may be necessary to increase the budget in order to reach a larger audience or implement additional tactics to improve performance. On the other hand, if the campaign is performing well and exceeding expectations, it may be possible to decrease the budget in order to achieve similar results while spending less.

Adjusting the budget as needed throughout a campaign requires ongoing monitoring and analysis of the campaign's performance and the results it is achieving. This may involve tracking KPIs such as website traffic, conversions, and engagement, and using this data to make informed decisions about how to allocate the budget for maximum impact. It is important to have a clear understanding of the campaign's objectives and a robust plan in place in order to effectively adjust the budget as needed throughout the campaign.

Summary

An ABM campaign is a targeted marketing strategy that focuses on specific accounts or companies, rather than targeting a broader market. Creating a budget for an ABM campaign can be challenging, as it requires careful consideration of several factors.

To create a budget for an ABM campaign, start by setting your goals and objectives. This will help you determine how much you need to allocate to your campaign to achieve your desired results. Next, consider the size and complexity of your target accounts, as well as the resources and efforts required to reach and engage them.

Next, consider the channels and tactics you will use to reach your target accounts. This might include digital advertising, direct mail, events, and content marketing, among others. Determine the costs associated with each of these tactics, and allocate your budget accordingly.

Finally, be sure to allocate a portion of your budget for tracking and measurement. This will help you understand the effectiveness of your campaign and make any necessary adjustments to improve results.

In summary, creating a budget for an ABM campaign requires careful planning and consideration of your goals, target accounts, and marketing tactics. By allocating your budget wisely and tracking your results, you can effectively reach and engage your target accounts and achieve your marketing goals.

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