Marketing Budget Allocation

Six years ago, I took over marketing at a company that went to 40 trade shows per year, and I cut that to 4. When I joined CoLab to lead marketing, we had zero conferences planned. I booked 2 the first year, and increased it to 6 the following year. What happened? Did my opinion on trade shows do a 180? Nope - the black and white pro - trade show vs. anti - trade show narrative is just an oversimplification. Most companies can go to at least a couple shows per year and get a positive ROI. Problem is - most companies are going to way more than a couple of shows per year and they have no idea which ones produce a positive ROI. You actually need a decent amount of rigor and discipline to figure this out. If you scale your conference spend too fast, you'll skip important retrospectives. It's easy to end up in the first scenario I described, where I had to cut trade shows by 90% in a year. Here's what you should do instead: 1) Start with a manageable number of conferences (no more than 1-2 per quarter, unless you have someone working on it full time) 2) Define success criteria going in: - You should have a qualified pipeline target - You should have tight definitions for what constitutes qualified pipeline, in the context of a conference - If you want to measure success based on other things (like establishing partnerships, moving in pipeline opps forward, etc.), figure those things out ahead of time too 3) After each show, do a retro and understand whether you achieved or missed your success criteria 4) If you missed, figure out why: - Is it a bad show for you? (e.g. not enough good fit ICP attendees) - Or could you make something of it, with some tweaks to your own execution? If it's the latter, you can go back again next year and test the new approach. Just like your email list, your trade show portfolio is something you should be constantly managing and "pruning" Most companies don't apply this level of rigor, which is why most trade show + conference programs are really, really wasteful. #b2bmarketing

4,000 jobs cut and iconic agencies DDB, FCB, and MullenLowe retired. All in the name of "efficiency." And some holding companies still don't understand why they're losing. The two most valuable but overlooked metrics in marketing are: → Brand affinity: "This is a brand for people like me" → Brand advocacy: "This is a brand I would recommend to my friends and family" Media drives awareness but doesn't in and of itself make people feel. Message does. When I look at the top ten advertisers in the U.S. (Amazon, Apple, GEICO, Progressive Insurance, Walmart, Verizon, T-Mobile, Allstate, Target, AT&T) at least half of them are overspending because they haven't cracked long-term brand strategy or a Core Creative Idea that endures. This is especially true of Verizon and T-Mobile. For both brands, media and awareness are king. But the message is generic. The return on shareholder value is highly questionable. People remember stories and how those stories made them feel. They don't remember frequency (although important for awareness) or channel. Neither do they truly care about the celebrity du jour. To maximize marketing ROI, the answer is simple: Rigorous brand strategy + an enduring Core Creative Idea + outstanding creative work = SPEND LESS ON MEDIA OVERALL. Just Do It. Open Happiness. Belong Anywhere. Own the Dream. These are not taglines. They are strategic platforms that compound in value over decades. This is how you build disproportionate shareholder return. And it's precisely what's been lost as holding companies like Omnicom retire DDB, FCB Global, and MullenLowe UK in favor of "efficiency" and cost cutting. I spent three years at Lowe early in my career. We ran the biggest and most creatively awarded account in the UK. That agency understood that great creative was the strategy, not a cost center. Now they're optimizing agencies like that out of existence. The math is backwards. Remember this: Great creative reduces the need for frequency. Weak creative demands it. Community, what do you think?

If I was the Head of Events at a $100M ARR SaaS, and had a $1,000,000 event budget, here’s the exact playbook I’d run (with budget): BACKGROUND: Replicating SaaS is only getting easier. Building moats is not. The best moat you can build is your community. That should be the #1 focus of every GTM team. Here’s the event program: 1. Flagship Event 60% of budget is going here. Pair on the back of a major product announcement. Use sponsorship and ticket sales to generate another $500k - $1m Attendance: 50% customers, 20% BoFu, 10% partners, 10% MoFu Invest in niche influencers. Make your event the “it” event. 2. Field Marketing Target 15-20 cities Bring in 1-3 partners. Total cost per city should be < $10k including travel Attendance: 20% Customers, 20% BoFu, 40% MoFu, 20% ToFu Get your SDR team onboard. Watch response rates go from <1% for cold outbound to >18% with dinner invites 3. Webinars / Virtual Full time role + $1,000 per event for promotion & speaker gifts 3 objectives here Build relationships with speakers Generate content You can’t be in every city every month. Use this to maintain mindshare throughout the year Attendance: 10% Customers, 10% BoFu, 40% MoFu, 40% ToFu (I'd use Accelevents to manage 1 through 3) 4. 3rd Party Events Only invest in the top 3-5 industry events Spend $50k - $100k per event Host a micro event at each You can’t build a moat from 3rd party events so I’d focus on our owned event program. 5. Content distribution Any remaining budget goes to content distribution. You’re building a brand around your events. Allocate 90% of budget to creating and distributing short form video. Not lengthy sessions. Look, it’s a lot of work. But it can define your brand. And your brand will be the only thing that matters when products get commoditized. P.S. Your CEO and CMO need to believe in events. What would you change? How would you allocate your budget? One platform can run all your owned events. Check out Accelevents --> https://hubs.la/Q03d3MZ70

"We don't have a marketing budget - we're open to your ideas!" Often, this statement translates to, "I don't know how to value our goals, so I'm unsure about what to spend to achieve them." Yet, 99% of agencies respond with, "No worries! We'll draft a proposal with various cost options." This approach is as ineffective as a chocolate fireguard. Instead, here's a more productive approach: ask the right questions upfront. When a brand says they don't have a budget, you might respond with: "Could you share the results you're aiming for?" They might say: "My boss wants us to gain 15,000 new customers in the next 12 months. Our average order value is about £90." You can then say: "Great! So, £90 x 15,000 new customers equals £1.35M in additional revenue. What do you think would be a realistic spend to achieve this in the next 12 months? Typically, investing 10-15% of the desired outcome is a good benchmark. So, a budget of £135,000 - £200,000 should give us a strong chance of hitting your targets. Does that sound fair?" If they reply: "That's more than we're willing to spend right now," You might respond with: "Our priority is your success. Would you be open to adjusting your targets? Spending 10-15% of the desired outcome is a realistic approach for potential returns." They might say: "I can get approval for £100,000, but I'll need to discuss lowering our target with my boss." And voilà! You've established a marketing budget. It might not be the ideal budget for the desired outcome, but at least you've had a mature discussion about expectations versus budget. Now, you can decide whether to work within that budget or help them understand the need for a larger investment. If you can't align, it's okay to walk away. But if they're open to discussing budget and setting achievable KPIs, proceed. This process doesn’t have to be complicated. Keep it simple and straightforward.

80 % of marketing budgets are still doing cartwheels in the wrong part of the funnel. Here’s a quick sanity check I use when clients ask why their “awareness” ads don’t move revenue.👇 1. Start where the money is (literally). If you’re not retargeting → CRM contacts, open opportunities, and past proposals first, you’re burning cash. Warm dollars convert 3–5× faster than any cold campaign, yet they get the leftovers. 2. “High‑intent” is code for “ready to buy.” Exact‑match search queries and branded terms deserve their own budget and landing page. No fluff, no blogs—just proof, pricing, and a form. Paid search has to be a foundational layer for most orgs. After warm near-bound prospects and before you think about ice cold targeting..paid search is where you go. 3. Middle‑funnel is your trust factory. Website lurkers, LinkedIn page visitors, newsletter readers—feed them testimonials, analyst quotes, ungated checklists. The goal: move them one click deeper, not straight to a wedding proposal. 4. Cold prospecting ≠ spray & pray. ABM lists with technographic or intent data beat look‑alike audiences every day of the week. Speak to the pain you know they have. Then cap your spend until retargeting pools are healthy. 5. Measurement > mythology. Weekly: pacing and cost per lead. Monthly: SQLs and win‑rate lift. Quarterly: cost‑to‑revenue by funnel stage. Most of the rest is dashboard glitter. TL;DR Shift budget down the funnel first, earn the right to scale up, and track every dollar like a bloodhound. Your CFO—and pipeline—will thank you. What’s the one funnel tweak that moved the needle most for you this year? Drop it below ⬇️ Website LinkedIn Ads Agency: https://lnkd.in/guEafPKk B2B Strategies and Guides: https://lnkd.in/gB-WQ82f Impactable YouTube Channel: https://lnkd.in/emYVDn_T

🌟 The Frustrations of Working with Indian Companies on Performance Marketing Ads 🌟 Working with Indian companies on performance marketing ads can be both rewarding and challenging. But one recurring frustration? Founders often expect to see results before they’re willing to increase the budget. 🚨 While it’s natural to want proof of ROI before committing more resources, this approach fundamentally misunderstands how performance marketing works—and it’s holding businesses back. 📉 💡 Here’s why this “results-first” mindset is flawed: Performance marketing isn’t a magic wand. It’s a data-driven process that demands an upfront investment to collect insights, test strategies, and optimize for success. Expecting big results from a tiny budget is like planting a single seed and hoping for a thriving garden—it just doesn’t happen. 🔍 Let’s break it down: A common scenario: a founder allocates a small budget to a campaign, sees modest returns, and decides performance marketing “doesn’t work” for their business. But the truth is, that limited budget crippled the campaign’s potential from the start. Platforms like Google Ads and Facebook Ads rely on algorithms that need data—impressions, clicks, conversions—to optimize effectively. A small budget starves those algorithms, leaving you with insufficient data to make smart decisions. It’s like trying to train a machine learning model with a handful of data points: the results won’t be accurate or impressive. 📈 The right way: Testing and Scaling The best campaigns follow a clear two-step process: Testing phase 🧪: A moderate budget lets you experiment with ad creatives, audiences, and bidding strategies to find what works. Scaling phase 🚀: Once you’ve got data-backed winners, you scale the budget to amplify those successes. Skimp on the testing phase, and you’re gambling with suboptimal results—or worse, missing out entirely. 🏆 Don’t forget the competition In crowded industries, competitors are pouring money into performance marketing. If you’re not willing to match or exceed their spend, you’ll likely get outbid and overshadowed. Digital visibility isn’t just about having a great product; it’s about investing to stand out. 🌍 Cultural context matters This “results-first” mindset isn’t unique to India, but it’s especially common here, often tied to cultural or economic priorities like frugality and immediate ROI. While those instincts make sense, they can clash with the long-term growth performance marketing delivers. 🤝 For founders: Shift your perspective. Investing in performance marketing is investing in your business’s future. Start with a realistic budget for testing and optimization, then scale based on what the data tells you. 📣 For marketers: It’s on us to educate and set expectations. Show clients the process—use examples or case studies to bridge the gap between investment and results. Let’s help them understand that performance marketing is a marathon, not a sprint.

Spend more is not a strategy. It is one of the most common traps in performance marketing. A campaign starts to work, the numbers look promising, and the immediate reaction is to push more budget into it. Sometimes that works. Often, it just exposes the weak parts of the system faster. Before you scale, the message has to be clear. The offer has to be strong enough to create action. The funnel has to carry people through without creating friction. The measurement has to be reliable enough to tell you what is really happening. Only then does more budget become useful. I think of it like a ladder. Message at the bottom. Then offer. Then funnel. Then measurement. Scale sits at the top. If the rung below is loose, climbing faster does not make you stronger. It just makes the fall more expensive. The better question is not “how much more can we spend?” It is “which rung is not ready for more weight yet?” Where do you usually see scaling break first? #DigitalMarketing #StartUps #B2B #leadership #saas

𝗛𝗲𝗿𝗲’𝘀 𝘄𝗵𝘆 𝘆𝗼𝘂𝗿 𝗯𝘂𝗱𝗴𝗲𝘁 𝗽𝗹𝗮𝗻𝗻𝗶𝗻𝗴 𝗺𝗶𝗴𝗵𝘁 𝘀𝗹𝗼𝘄 𝗱𝗼𝘄𝗻 𝘆𝗼𝘂𝗿 𝗺𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 💥 Traditionally, companies plan fixed annual budgets, allocate these to existing channels and only make slight changes throughout the year. ⚙ In today’s fast paced world this approach can often be very misleading. 🚨 Agile budgeting refers to continuously reviewing and adjusting budgets based on data to be more responsive and shift focus to best performing channels. ✅ 𝗛𝗼𝘄 𝘁𝗼 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁 𝗮𝗴𝗶𝗹𝗲 𝗯𝘂𝗱𝗴𝗲𝘁𝗶𝗻𝗴 𝗶𝗻 𝘆𝗼𝘂𝗿 𝗺𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆: ♻ Shorter Planning Cycles: Break down annual plans into quarterly or even monthly budgets, giving you more flexibility. 📊 Real-Time Tracking: Set up analytics dashboards and reporting tools to track key performance indicators (KPIs) for each campaign and channel. 🔎 Iterative Reviews: Regularly review budgeting with your team (weekly or bi-weekly). Discuss campaign performance and be ready to shift funds. 🌱 Embrace Flexibility: Be comfortable with the idea that your initial plan might change. Prioritize making adjustments based on data, rather than sticking to a rigid budget. 🔀 Cross-Functional Alignment: Work closely with finance teams to understand any constraints and ensure processes support nimble budget adjustments. What's your approach to budget planning? Let me know in the comments. 💬 - - - 🔔 Want to read more? Follow me Maximilian for regular posts and updates on #digitalmarketing, #lifeatgoogle and #career in tech.

“My CEO ordered me to never use the word ‘brand’ again,” lamented a CMO from a $75mil SaaS brand. “Then he told me to only spend money on things that drive revenue,” the CMO shared. Ah, yes, the double whammy. Everyone in the huddle sympathized with a “been there” nod. I silently stewed. A productive rant to follow. Should CMOs stop using the word “brand?” Yes. It’s toxic. Time to move on, and this is from the guy whose latest book subhead reads, “12 Steps to Building Unbeatable B2B Brands.” If you must venture into brand-like language, use the word “reputation.” It’s much easier to grasp. Even CFOs can understand the difference between a good reputation and a poor one. Does that mean I can have budget items for reputation building? No, unless you want that part to be cut faster than you can say “brand.” If possible, avoid sharing spending buckets beyond people, programs, and tech. If you, like many CMOs, divide your budget into demandgen or growth marketing and everything else, your CFO will assume that everything else is unmeasurable and possibly wasteful. Choose your budget-bucket labels carefully. Events, for example, can drive new logos, accelerate late-stage deals, help with expansion, and reduce churn. If events are funded from your “growth marketing” budget, then that’s how they will be measured, and that may limit this invaluable channel. What about the “only spending on revenue drivers” directive? Live with it. All marketing drives revenue (there, I said it!). It’s just a matter of timeframe and targets. Unless you’re selling an impulse item (Of course, I would buy another penguin hat if it showed up in my Instagram feed), you operate in the world of considered purchases and buyer journeys. Different marketing activities impact different parts of your target at different times in different ways. Let’s take Analyst Relations. It can take 12-18 months to build a quadrant-shifting relationship with an analyst. When that higher rating or new category of your own making suddenly arrives, you’ll be rewarded with higher consideration and close rates. That’s revenue too. Just a bit slower. Could we shift this conversation altogether? Yes. Please. Let’s start at the end and work backward. Right now, every B2B brand has a win rate. If you, for example, compete against three better-known brands, your win rate is likely lower than that of the top three. What would it take to improve your win rate? Most likely, it is a combination of product changes, pricing, positioning, CX, and promotion, including analyst relations. Lead that conversation. The second conversational shift is to pricing power. Conduct a thorough analysis of the discounting required to close deals. Understand how much discounting impacts profit margins. Find out the last time you took a price increase. Reputational strength equals pricing power and higher close rates. Work with your CFO to build the model. Marketing does drive revenue. But it's not about SQLs.