How Big Should Your Marketing Budget Be?

 Deciding on the size of your marketing budget for an event can be a complex task, as there are several factors which impact on that decision. Understanding these factors will help you allocate your resources more effectively and ensure the success of your event.

Attractiveness of the Concept

The attractiveness of your event concept plays a significant role in determining your marketing budget. If you are introducing a new concept or bringing something exciting to a region for the first time, there’s a higher chance you will have more organic demand. This means you may not need to spend as much on marketing to sell tickets, as the novelty and excitement can drive word-of-mouth and organic interest.

Competition on the Day

The level of competition on the day of your event is another crucial factor. If your event is in a big city with lots of competing events, you may have to spend more on marketing to break through the noise. Additionally, advertising costs can be higher in densely populated areas, further increasing your budget needs.

Price of Your Tickets

The price of your tickets directly impacts your marketing budget. The more expensive the ticket, the smaller your potential audience, which means you will need to budget higher to reach and convert your target attendees. For more expensive events, a higher marketing budget is necessary to ensure you attract enough attendees to meet your revenue goals.

Size of Your Loyal Customer Base

If you have a large mailing list and a loyal customer base, you can spend less on marketing. Announcing the event and creating awareness through organic channels will likely result in sales, saving you money on paid advertising. Leveraging your existing customer base can significantly reduce your marketing expenses.

Your Profit and Loss

Ultimately, your marketing budget needs to align with your profit and loss goals. It’s essential to ensure that your marketing expenses do not outweigh the potential revenue from ticket sales. Keeping a close eye on your financials will help you allocate an appropriate budget that maximises your return on investment.

Estimating Your Marketing Budget

A good formula for estimating your marketing budget is 15% of the average ticket price multiplied by the capacity of the event. This can provide a rough estimate of how much you should allocate to marketing. For example, if the average ticket price is £20 and the capacity is 300, your marketing budget would be £900.

By considering these factors and using the formula as a guideline, you can make a more informed decision about the size of your marketing budget for your event, ensuring that you allocate your resources effectively to achieve your goals.

You can see more budget scaling examples below

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