Selling your Marketing Budget to your CFO

Using a Marketing Budget Ratio is the most common way to set and justify marketing spend. It is an easy approach, and it is certainly better than just taking last year’s budget and subjectively adding or cutting based on what you think worked. A better way to justify your marketing budget is to think of it as an investment that incurs costs today but delivers benefits for many years. By using benchmarks from similar companies, you can help make the case that marketing is a revenue driver, not a liability.

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