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It’s funny how most marketing campaigns look like pure creativity in action, but in reality, years of hard work, strategic planning, and whatnot have gone behind its making. One thing is for sure, only good ideas don’t cut the deal; one needs a proper budget to convert those ideas into profits.
Crunching those numbers and calculating ROIs are the report cards of any marketeer, so it’s not only monetary but also acts as a driving force.
**Here’s how we do the math:**
**Step 1: Revenue & Sales**
Goal = $50,000
Price per product/service = $125
No. of sales required to produce the revenue goal = 50,000/125 = 400 units
**Step 2: Lead to Sales (Prediction)**
Let’s suppose,
the conversion rate (Leads to Sales) = 4%
Leads that need to see sales material = 400\*100/4 = 10,000
Now, if the open rate = 30%
How many people you need to visit your sales material?
10,000\*100/30 = 33,333
**Step 3: Lead Price & AD Budget**
If cost per person watching sales material = $0.8
So the required AD budget = 33,333/0.8 = $26,000
**And there you go, you have your Ad Budget right there.**
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