6 Tips to Maximize Your Marketing Budget

As the air becomes a bit more crisp and leaves begin to fall, budgeting season for marketers begins. 

Being a CMO is not an easy gig - average tenure continues to be the shortest of any C-suite role. With economic uncertainty, shifting consumer expectations, and evolving digital trends (AI, anyone?), it has become more of a challenge to sort budgets. Last year’s numbers may not be a great indicator of future success. One thing is certain: demonstrating the ROI from marketing efforts is crucial for brands to stay competitive. 

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Below are key budgeting challenges that marketers often face and practical solutions to help marketing leaders craft a stronger, more agile budget. 

Challenge #1 | Difficulty Tracking ROI Across Channels

With marketing strategies becoming increasingly multi-channel, understanding and articulating which touchpoints generate real value can be difficult. According to Gartner’s 2024 CMO Spend Survey, many marketing leaders struggle with fragmented analytics, making it hard to track ROI accurately across channels. Measuring marketing is tricky because vanity metrics always take a toll which makes it hard to relay the effectiveness to the CFO. 

Solution: Invest in Advanced Attribution Models

Implementing multi-touch attribution models can show which customer interactions across the buyer's journey contribute the most to conversions. Platforms like Hubspot and Google Analytics have evolved significantly and now offer sophisticated attribution tools that can streamline ROI analysis.

With this data-driven approach, marketing can better prove value to the C-Suite. 

Tip: Dedicate a portion of your budget to upgrading or acquiring new analytics tools. Having comprehensive data will allow you to make informed decisions on budget allocation and optimize ROI. Basically, the tools help you identify what is working and where your energy should be. 

Resource: For further reading on how to overcome budgeting fears and get the most out of your investments, check out Setup’s blog on Overcoming the Fear of Planning a Marketing Budget. It breaks down why careful planning is critical for success.

Challenge #2 | Overspending on Low-Impact Channels

It’s easy to default to spending large sums on channels that used to work well but no longer yield high returns. With the saturation of major platforms like Google and Facebook, the cost per acquisition (CPA) has risen dramatically, which may lead CMOs to overinvest in underperforming campaigns. Rather than having the mindset that marketing should be everywhere, not every channel is effective for every Brand and different social media platforms serve different purposes. For example, at Setup, we are targeting marketing business leaders who are most likely engaging with us on LinkedIn. Although we like to create fun, approachable content on other channels like Instagram and TikTok, our audience is primarily on LinkedIn, so that’s where our focus is as well. 

Solution: Conduct Quarterly Channel Audits

By auditing the performance of each channel every quarter, you can identify which ones are underperforming and reallocate funds to more effective platforms. For example, while traditional channels may be losing impact, newer platforms like TikTok and Reddit may provide more targeted and affordable options for reaching specific audiences.

Tip: Stay nimble and stay diligent. You don’t have to be everywhere on every platform. Identify your target audience and their behaviors, and meet them where they are at, investing in your energy where it matters most.

Challenge #3 | Underfunding Content Marketing

Content marketing is a long-term investment, and its returns aren’t always immediate. Personalized content is a driver of customer loyalty and engagement. Underinvesting in this area could lead to missed opportunities, especially as the importance of search engine optimization (SEO) and thought leadership increases. Since younger generations look to micro-influencers and reviews for opinions, sharing your expertise could resonate with your audience. 

Solution: Prioritize Evergreen Content

Focus on creating high-quality, evergreen content that can be repurposed across multiple channels. Whitepapers, case studies, videos, and long-form blogs can be broken down into social media snippets, email campaigns, and even sales collateral. This repurposing amplifies content’s ROI.

Tip: Allocate a significant portion of your budget to content marketing and make sure your strategy includes high-value assets that can be reused throughout the year.

Resource: To simplify the planning and allocation process, download the Setup Marketing Budget Template. This free resource is designed to help CMOs and other marketing leaders organize, forecast, and allocate their marketing spend effectively in 2025 and beyond.

Challenge #4 | Rising Digital Advertising Costs

The increasing cost of digital advertising is another challenge marketers must navigate. With the cost-per-click (CPC) and cost-per-impression (CPM) on major platforms like Google Ads continuing to rise, maintaining profitability from paid media is more difficult than ever.

Solution: Explore Emerging Platforms and Programmatic Buying

Diversifying your paid media strategy to include emerging platforms such as TikTok or Pinterest, where CPC is still relatively low, can help manage costs. Additionally, programmatic ad buying allows for more efficient spending by automating the ad placement process based on performance data.

Tip: Keep 10-15% of your paid media budget flexible to test emerging platforms and refine your paid media strategy as new trends develop. Make sure to lean into A/B testing and, if you need an expert to manage this process since throwing money at a problem never leads to results, consider hiring a marketing Agency proficient in paid media. 

Challenge #5 | Misaligned Budget Priorities Across Teams

When different marketing teams (such as brand, product, and performance marketing) aren’t aligned on goals, it can lead to fragmented efforts and inefficiencies. Budgeting across teams without a unified strategy often results in overlapping or contradictory campaigns that fail to meet business objectives.

Solution: Centralize Budget Planning with Cross-Departmental Collaboration

Ensure that all marketing teams are aligned on overarching goals before setting the budget. Identify your Purpose across the organization and how your goals work together to enact that Purpose. Regular cross-departmental meetings can help bring focus to which campaigns are driving growth and ensuring resources are allocated effectively. Marketing Resource Management (MRM) platforms like Monday.com and Wrike can help centralize budget planning and create visibility into spend across departments.

Tip: Allocate budget based on performance and strategic alignment with company objectives, ensuring that each team is pulling in the same direction.

Challenge #6 | Unpredictable Trends and Market Changes

No one can predict the future with certainty, and marketing trends are constantly shifting. Whether it’s a new technology or a viral moment, unexpected changes can leave marketers scrambling to adjust their budgets mid-year.

Solution: Build Flexibility into Your Budget

To navigate unforeseen trends, leave a portion of your budget unallocated so you can pivot as needed. This "contingency fund" will allow you to capitalize on emerging trends or deal with market shifts without reallocating from existing campaigns.

Tip: Keep 10-15% of your overall marketing budget in reserve. This will provide a cushion for responding to sudden opportunities or market shifts.

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Navigating the challenges of the ever-changing marketing landscape requires foresight, flexibility, and a data-driven approach. By addressing these common budgeting hurdles and implementing the solutions outlined above, marketing leaders and CMOs can develop strong, adaptable marketing budgets that drive both growth and efficiency.

To streamline your planning process, make sure to download the free Setup Marketing Budget Template. This valuable resource will help you organize your budget, track ROI, and allocate resources efficiently as you prepare for the year ahead.