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Budgeting 101: A Marketer's Guide


Hey. Welcome back to the program. My name is David Lewis, and here on DemandGen TV. We teach you guys the methods and technologies for driving growth.

Today on the program, I'm gonna walk you through the entire process of creating a marketing budget from scratch. I've designed a template for you guys, and I'm gonna show you where you can get that template, towards the end of the episode. But first, I'm gonna start off with explaining to you my methodology for how I create and set up the spreadsheet in Microsoft Excel. I'm gonna cover with you guys how I created all the categories and the various rows for the various expenses.

I'm also gonna talk about how much you should be spending or might be spending on your staff as a percentage of the total budget. And then at the end of that, I'm going to talk about how much you're spending as a percentage of revenue and give you guys some benchmarks. Because, I remember earlier on in my career as I was building marketing budgets, I always kinda wondered what percent of revenue should my total market budget be? Should it be thirty percent, twenty percent, ten percent, less than that?

And I'm gonna answer that for you. And then finally, what I'm gonna do is since we are in the age of AI, I'm gonna show you how now I can use Chat GPT for building out some of the ideas for my categories and various expenses.

Alright. So let's dive in and take a look. So the first thing I'm gonna do is explain to you how I've set up this template. And you can see over here on the left, I've got all the different various categories put into the templates.

Things like, again, at the top marketing expenses, underneath that, my salaries and compensation, both for the marketing team, And probably a lot of you have a BDR or SDR team that reports up into marketing. And I've broken out the expenses for the core marketing team as well as the BDR team. And, of course, totaled up there. Partner marketing, marketing contractors and agencies, marketing technology, as well as display advertising, event marketing, print, direct mail, and various other expenses.

Well, how did I come up with those categories, or how can you come up with categories. And I thought one of the really good ways to do that is using AI. And I wanna show you that in just a moment. Two other things that I wanna point out to you, a out the budget template is if you'll notice up in the top right corner in column w, it has these divide errors right now.

But as you build out the template, and you put in your expenses for your staff, it will show how much is that as a percent of your total marketing budget. And then if we scroll down here to the bottom, you'll notice that I've got a formula for how much your marketing budget is as a percent of revenue. And I put in a hundred and sixty million, in the template, but you put in what your company's annual revenue is, and this will help you take a look at, again, how much you're spending on marketing as a percent of that total budget.

The budget template itself is broken out into two tabs. The first tab is your marketing budget, and the second is your staff budget. So when you start to build out the template, what I suggest you do is you come here to the very first column. And, you know, if this is you, if you're the head of marketing, that's putting this budget together.

Let's give yourself twenty thousand dollars a month, two hundred and forty thousand dollar annual salary. And you can see that carries across. So the very first cell in column c will prepopulate that expense across the year, and then you'll see in column p what the total salary is. Let's say your head of demand generation is making slightly less.

$15,000 a month. Total of a $180. We got $420. Let's give your BDR manager.

Why don't we put them in at twelve thousand a month and your BDRs at, let's say, $8,000 a month. Again, your costs are gonna vary, but I'm just showing you how the template works. So now we've got $600 and $60,000. If we come over to the marketing budget tab, you'll see as we scroll all the way up, we've got those percentages in there. And now if you take a look at the bottom, even though we haven't ad$60,000 is as a percent of revenue. And it's 0 right now because it's actually such a small rounded number.

Now I'm gonna switch over to one that's fully built out so you can see that.

Gonna zoom in a little bit for you. And you can see now that the marketing team budget comes all the way across for all the months that have been added. And then you can see the cost for partner marketing. Again, these are all placeholder numbers. Your mileage your expenses are definitely going to be different than these numbers, but these are some ballpark numbers that you have in here.

And as you build all of this out, you'll have your total budget for every single month. If you want, of course, you can put the month names at the top of the template.

But I have labeled them now month one through twelve because I don't know what your fiscal year is. And now we can see that at a total marketing budget of seven million, that that is four percent as a cost of revenue. So what I'd like to do in the final part of this video is show you how to use AI specifically GPT for helping you identify what expenses. Again, your business is gonna be different than this template. But this is a really helpful way to start figuring out all the different categories that you might have in addition to what I have here in the template. And I also wanna answer the question. How much should you be spending on marketing?

So I asked GPT. I said, what is the average percent of revenue spent on marketing? Now this right now, is using GPT 3. If you use GPT 4, you're gonna get a much more extensive answer, but I thought this was a very good summary answer.

And the answer is about 7% to 12% of marketing. So as you saw in the example where I had about four percent, that's typically under what the average person is spending. Now b to b spending versus b to c spending is going to range differently. But in general, anywhere from on the low side, four percent, up to twenty percent of your annual revenue spent on marketing budget.

Like I said, most companies 7% to 12% percent.

Now let me show you how you can come up with all the various categories of expenses and the individual rows. I like to use Microsoft Word with dictation turned on and then take the dictation for the prompt and bring that into GPT. So let's go ahead and do that.

With Microsoft Word open, I'm gonna click on the dictate button up here at the top.

I am building a b to b marketing budget and would like your help.

Listing all the various marketing categories and rows that I could include in my marketing budget that I will create in Microsoft Excel.

Turned off dictation. And now I'm gonna take that, and I'm gonna hit control c to copy it and come back over to our in house GPT solution. I'll start a new chat, and I'm going to paste my prompt into the dialogue box and get it going.

And very quickly, you'll see a nice comprehensive list that has been put together starting off with advertising, content marketing, and all of those little bullet points represent the various rows that you might include in your budget. And again, you're gonna tailor this for your specific needs. But I think this is a phenomenal way to take all the knowledge that is out there in the world on marketing budgeting and help you with ideation about what categories and what rows of expenses you can include in the template. Now if you wanted to, you certainly could create a CSV file of this. For you to import into Excel. So I will go ahead and do that. And this time, I'll just type it in.

So I asked it both to create one for me and tell me how to do it in case you don't know. And then, we'll get that process starting.

So now Chat GPT is going to produce that CSV file, and then give me the instructions of what to put in there.

Alright. Well, that is gonna do it for this episode on how to create a marketing budget from scratch. If you have any questions, of course, you can always reach out. And be sure to open up the description for this episode below because I've got a link to this template for you, and that will help you get started. Again, if you have any questions about our in house GPT solution, you can also reach out about that as well. That's gonna do it for this episode. We'll catch you guys on the next one.

Marketo Engagement: Visual Layer Overview


Welcome back to DemandGen TV. I'm your host David Lewis, And here is where we talk about the methods and technologies for driving growth. Today on the program, we're gonna show you the new Marketo Engage canvas. It's a powerful new capability that came out August 1, 2023.

And I'm gonna be joined by Nova Kopator, who leads our Adobe practice here at BDO Digital. She is a tremendous wealth of knowledge and phenomenal member of our team. And you guys are, you know, never met Nova before. You guys are in for a treat because if there's anyone who knows anything about Marketo, it is Nova.

So without further ado, let's take a look. Thanks, Dave. I'm really excited to talk about this new functionality today as a longtime Marketo user managing a lot of different complex programs and processes within this system, living in that previous linear world where all the programs of smart campaign structure really didn't provide that easy way to connect how those things are working together.

Has been one of the things that has been really lacking in the platform that I am so excited that they have now brought in here. You know, we've been resolving these challenges outside of the system for years doing things like flow charts and lucidchart or whatever your system of choice may be. In system we've been utilizing naming and numbering to create some sense of order, but we've never had that in system visual helps us easily bring all the things together, not just for ourselves, but for other people that really are trying to understand how the platform is set up. So that's why I am super excited about this new engagement canvas in this first iteration of the a visual layer that they are adding on top of smart campaigns within programs. It's really gonna help us do a number of things. Really help us understand how things are interconnected.

There's some great functionality that I'll give you a little sneak peek into. To really make sure that errors and troubleshooting and the QA process runs very smoothly. And all of these things are retroactive if you have programs and things built within Marketo today, this functionality is going to be available for you. And, you know, I'll talk a little bit about how doing some setup will really make the most of this. But, really, again, this functionality, in my opinion, is a game changer for those marketing folks that have been for years struggling with really trying to make sure that all the things that are connected in a very complex process are firing all cylinders within Marketo.

So with that, I actually wanna go into the system and show you an example of how this can be applied to existing programs and processes today. Let's take a look at how this new to engagement canvas functionality can all come together, especially in a very common use case that us marketing ops managers and leaders are having to really get set up and fine tune precisely in our system. And that the use case of a new lead is being created. We all have this happening in our systems.

It's why we're using Marketo. It's why we do marketing. But typically when a new lead is coming into a system, there are a number of processes that that person is going to go through. They may go through something first like data normalization and enrichment.

And within that program, you may have a number of different things that are important to you for That's why you're first going through and you're normalizing and enriching your data, which then would also, you know, lead into your scoring because you wanna make sure especially on qualification scoring when you are scoring someone that you are using the most accurate data. And then finally, of course, based on that information, that's usually where, things like status management and things like that may come into play. Now I don't have a full blown lead management program in this particular demo because I didn't want to muddy the view, if you will, because there's a lot that can go into those.

But let's just, for purposes of this use case we're talking about, go into the first program that most of these or smart campaign most of these programs will have, which is triggering off when the person is created.

So that's what this smart flow does. So again, we still have our linear view that we are used to, but now we have this great new button called engagement map. Now when we click on engagement map, what's going to happen is it's going to bring up this view. Now the first thing to note is that in the view, the visual layer, not everything is going to be expanded.

So if you want to expand certain sections of your flow, especially if you have, different branches, different choices that might be happening. You're going to go ahead and click on these arrows to those steps. So you click on those, and that's going to expand things out. And now here you can start to see all of the different things that are happening throughout this very simple person is created flow. What's really nice about this is you get to see everything in one view. You don't have to go to the smart list tab, and then the flow tab, everything is here, right, what starts it, then what's happening next, and then, of course, the branches.

Now if you look over here to your right, what you're going to see is when you select a particular part of your flow, it's going have some different information. It's going to tell you what smart campaign this flow step is a part of. If you click any of the edit buttons either here, or up here that will take you back to the current editors. So it is important to note is that this first iteration of the engagement canvas is just a visual layer.

If you are doing any editing, you will still be using the same screens that you used, previously. So for example, if I were to click this, you're going to see what's going to pop up is the standard smart campaign, flow screen that we would then go in and do our edits to. So this isn't yet fully incorporating things like building net new programs from scratch or being able to edit, say, within this particular, box, but it is the first step in a in the right direction and really being able to give us all the tools that we need to effectively manage the order of operations.

So this is all I think pretty straightforward. Let me go ahead and expand this branch again because this is where now you could start to see some more power. Right? Here, we are still in our person is created flow.

But now when I go out here, you can start to see that I'm in the contact Role Smart Campaign. This isn't a completely different program in Marketo, but because I'm using an executable to call something within that, program, it is allowing me to see that flow within here. Now, again, super powerful because I'm not having to go through and taking a look at, okay, this one individual program. Alright.

Now it connects over to here to this program. It's all brought together in this single view. So when you're looking at those connections or if you're someone new, trying to get, onboard and understand how everything is processing, especially in a use case like this very easy to start that information.

Another cool fun feature is you can export this. Now what it's going to export is whatever you have expanded at that point in time. So if you didn't expand everything, it's gonna show you the single view because I have all of these things expanded. It's going to show me that full map section. So again, depending on who you may want to share this with or how you might want to manage your documentation, this is gonna be a huge lifesaver. I know myself personally being able to just export this out and not having to do an accompanying lucidchart is gonna save me a ton of time.

So again, really awesome to be able to make those connections and see how those things flow. The other great thing about this editor is or this view is that you can see where you have potential issues.

Right? So in this particular case, this is actually an issue in that contact role campaign. So it's not the thing that I am automatically working on directly in front of me within that person is created, but what it is allowing me to see is hey, if I'm running people through this flow and they hit this step, guess what? There might be an issue there.

So this is gonna allow me to then go into that other campaign. And correct the issue before, it starts impacting real life people going through. So from a QA standpoint, huge, huge benefit. I can't tell you how many times I've been burned by the red squiggly line in a flow step where I think Market saved it or I think I typed in the right thing, but then when I go back after something failed, I realized it didn't save.

So I can't tell you how excited I am about this functionality and being able to get that view and go straight away correct those issues and not have those out the gate. So, again, another great feature that this visual layer is bringing to us, especially for you know, all of us out there in marketing ops that are managing use cases like this where things are connected. One thing flows into the next. And if it's not done, in the precise order or with correct flow steps here, certainly you're going to run into some global issues.

So, again, really, these are the big, I think things that are going to make an immediate impact with this visual layer. Like I said, think in future iterations once they start continuing to enhance this functionality, it's only gonna get better. But This is something that I think has been really missing in Marketo. So if you can't tell, the excitement that I have here for something as simple as this It's just so powerful and it's just gonna make such a big difference for all of us that are managing really complex campaigns and setups and flows I'm just really excited, and I can't wait to tell all my clients about it.

No. But thanks so much for taking us through that. I mean, I personally am excited like you because as someone who's been using marketing automation going back to, you know, early two thousand three, we've always had visual editors to design our program flows and review them programs like Eloqua and other systems. So it's great that Adobe is definitely catching up and adding that visual layer.

And your takeaway here, right on point, everything from the interconnected programs and identifying the errors. For all of you before you drop off this video, I just wanna make sure you guys know In addition, to what you saw, check the show description below because we have links to other resources for you guys that are associated with the channel. And, before you drop off, don't forget to kick click like and subscribe because we'll be making always more content for you guys and teaching you guys these methods. And technologies for driving growth.

Thank you, Nova. We'll catch you guys on the next episode. Thank you, Dave.

Stay tuned for more episodes coming shortly!