Best Practices for Budgeting an Advertising Campaign

  • Updated

When setting up an ad campaign, it's important to budget it accordingly to achieve your account-based objectives. Follow the budgeting recommendations below to ensure that you're extracting the maximum value out of each dollar of ad spend and of the associated ROI. We suggest three different ways to budget: by funnel stage, by account priority, or by business unit/opportunity size.

Tip: Do you know your campaign budget but want a recommendation on how many accounts should be in the campaign? Or do you have a list of accounts and need to understand the recommended campaign budget? Use the Advertising Planning Calculator for a recommendation.

Budgeting Methods

To determine an appropriate budget, you need to know the criteria for your campaigns. The following examples are typical campaign strategies that many successful ABM teams implement:

  • Funnel Stage: Starting with a low monthly budget for top-of-funnel campaigns. Increasing the budget as you progress to mid- and lower-funnel campaigns.
  • Account Priority: Starting with a low monthly budget for Tier 3 accounts. Increasing the budget as you progress to Tier 2 and Tier 1 accounts.
  • Business Unit/Opportunity Size: Starting with a low monthly budget for low average contract value (ACV)  accounts. Increasing the budget as you progress to medium and high ACV accounts.

Funnel-Stage Budgeting

As a best practice, most customers find that the funnel-stage method of budgeting serves as an optimal strategy in their ABM program because it's a simple and effective way of bucketing accounts and tracking their funnel progression. The following table lists budgeting guidelines based on campaign objectives and purposes, which can help you boost effectiveness of your ad spend when you apply a funnel-stage campaign method.

 

Objective Purpose Budget Guideline

Raise awareness

(Top-of-funnel stage)

  • Top-of-funnel prospecting
  • New-market entry

$35-$50 per account per month

Build pipeline

(Middle-of-funnel stage)

  • Generation
  • Acceleration

$35-$60 per account per month

Close pipeline

(Lower funnel stage)

  • Closing
$60-$75 per account per month

Retain/upsell customers

  • Renewal
  • Upsell

$60-$75 per account per month

To further enhance the effectiveness of the campaign, implement Demandbase Personalization to improve visitor engagement on your website. Highlights of the feature include these capabilities:

  • Personalize the landing page and other top entry pages by segment for broad campaigns.
  • Shorten forms pages to optimize conversion rates.

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