Budgeting for Marketers: Essentials
Get a greater understanding of the numbers that underpin your marketing. This introduction will help you to create the right financial business case and measure outcomes. Use this knowledge to forecast results and build successful marketing campaigns.
You will learn to:
- Gain a greater understanding of direct and digital marketing metrics
- Gauge the success and failure of your marketing activity
- Understand the principles and the terminology
- How to understand and apply results to maximize campaign performance
- Budget and build the financial business case for campaigns
Details
- Duration
- 1 day (7 CPD hours)
- Rating
Course Information
Programme
Principles of budgeting for direct and digital marketing
- How to evaluate the cost-effectiveness of your direct and digital marketing activity
- Evaluate the performance of on and offline marketing channels
- Understand and calculate your Allowable Marketing Cost (AMC)
- Modeling customer Lifetime Value (LTV) by source and customer type
- Understand how recurring revenue models work and affect AMC
The building blocks of direct and digital marketing metrics
- Maths for marketers; percentages, mean, median, mode etc.
- How to calculate your Cost per Mille (CPM), Cost per Response (CPR), and Cost per Action (CPA)
- Calculate your Cost per Sale (CPS) and conversion rates
- Understand and calculate a break-even point
- Evaluate Market Share
Accounting definitions made easy
- Introduction to accounting principals and terminology, including cashflow, yield, contribution, fixed and variable costs, Earnings Before Interest and Tax (EBIT), and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)
- Understand key business finance concepts including risk, opportunity cost, Net Present Value (NPV)
- The importance of budgets and forecasts
- How to calculate your Return on Investment (ROI)
[Participants will be provided with a full glossary of terms to take away]
Performance measurement systems for direct and digital marketing
- Metrics frameworks for assessing the effectiveness of direct and digital marketing
- Identifying Key Performance Indicators (KPIs)
- How to build a Balanced Scorecard (financial and non financial metrics)
- Structured improvement through A/B and multivariate testing
- How to build a test matrix and calculate minimum sample cell sizes and margin of error
Budgeting for digital marketing
- How to build budgets and forecasts
- Typical costs and response measures
- How to monitor and control budgets
- Variance analysis and managing costs
- How annual and departmental budgets are built from campaign budgets
- Budgeting for different growth scenarios
- Marketing maths and working with budget holders – Top tips to get your business case approved
Who Should Attend
Finance for Marketers is for all who need an introduction to the key financial principles that underpin direct and digital marketing – implementers, strategists and those who have any engagement in this activity within their organisation.
You will gain insights into the basic metrics involved with planning and evaluating marketing activity, and learn how to build predictive models that support evidential business cases.
Tutor
Tim Hamill F IDM, Director, Data Ketchup
Tim has over 25 years of marketing experience specialising in helping businesses utilise data to improve their marketing and commercial decision making.
During his career he's held several senior roles at Royal Mail, driving their marketing, market insight product development, and creative services.
He is a founding partner of data-driven creative marketing consultancy Data Ketchup and a Director of Customer Content for 3d Mapping Company.
For the last five years, he's been an IDM tutor teaching qualifications on direct marketing, finance, and data. He was named IDM educator of the year for 2019.
Venue
London (W1W 8SS)
Testimonials
A very enjoyable & informative session. Thank you Tim. Lots to go away and think about.
Tim was super engaging on a potentially dry topic with lots of practical and interesting examples - I am excited to put what I learned into practice.
Laura Johnston,
Global