How to manage budget changes

Budget allocation plays a critical role in determining the efficiency and impact of marketing campaigns. With Lifesight, marketing teams can assess how changes in budget affect key performance metrics and optimize their strategy accordingly.

Facing a budget cut and need to replan your investments

1. Run a MMM model to understand how your current investments influence marketing performance.
2. Use the MMM Scenario Planner and select Optimize for "Budget".
3. Enter your new budget amount in the Target field.
4. Select your forecast period (either month or quarter) and set your constraints according to the budget changes for the model to allocate media spends.
5. Click Run Scenario to view the forecast and media spend allocation.
6. The model predicts and allocates the reduced budget amongst your media mix while optimizing for your outcome KPI (Revenue, etc)
7. The Planner also gives a budget worksheet and pacing sheet that can be downloaded and shared with channel managers to implement.

For example,

If your previous month budget was $100,000 and you want to optimize your budget for next month and have only $70,000. Then you would input select Optimize for "Budget" and enter Target Budget as $70,000. You would then select Forecast for "Next month" and choose Constraints as "Aggressive". This indicates that you the model has to allocate only 70% of the budget to drive maximum business outcomes. Click Run Scenario to view your new budget allocation and predicted outcomes.

Have additional budget and don't know where to invest them

1. Run a MMM model to understand how your current investments influence marketing performance.
2. Use the MMM Scenario Planner and select Optimize for "Budget".
3. Enter your new budget amount in the Target field.
4. Select your forecast period (either month or quarter) and set your constraints according to the budget changes for the model to allocate media spends.
5. Click Run Scenario to view the forecast and media spend allocation.
6. The model predicts and allocates the reduced budget amongst your media mix while optimizing for your outcome KPI (Revenue, etc)
7. The Planner also gives a budget worksheet and pacing sheet that can be downloaded and shared with channel managers to implement.

For example,

If your previous month budget was $100,000 and you want to optimize your budget for next month and have only $120,000. Then you would input select Optimize for "Budget" and enter Target Budget as $120,000. You would then select Forecast for "Next month" and choose Constraints as "Aggressive". This indicates that you the model has to allocate 120% of the budget to drive maximum business outcomes. Click Run Scenario to view your new budget allocation and predicted outcomes.