One of my good friends in the tech industry, Gen Tiu, asked this question on Twitter:
How do you forecast how much return you can get from a digital campaign because budget has to be justified to be approved?
She was in a digital advertising event and she shared that the panel wasn’t clear on answering it. Took the opportunity to reach out and share my thoughts on the matter based on experience being on the agency side and on client.
Ask Small First and Prove It Works
Here’s the most practical way of how to ask for digital advertising budget: ask small and experiment first. You can’t give specific benchmarks because industry benchmarks are usually misleading. You need to create your own internal benchmarks based on critical revenue-related metrics like ROAS (return on ad spend).
If you want them to show you the money, you have to show them the results first. Once you have your internal benchmarks from your test campaign, you can make a more educated forecast and ask for bigger budgets. It will be easier because you have proof-of-concept and you have confidence of management or the business owners.
Read more about effective digital advertising here.