Advertising Budget Mistakes to Avoid in Your 2025 Plan
It’s hard to believe that 2025 is just around the corner, which means it’s time to start thinking about your advertising budget and strategy for the new year. However, as you walk through this process remember that advertising budget mistakes are more common than you might think, and they can cost your business big time. From overlooking hidden fees to underestimating the importance of strategy, these missteps can throw your marketing efforts off track before you even get started.
The good news? With a little planning and the right approach, you can avoid these pitfalls and set yourself up for success. Let’s look into the most common advertising budget mistakes we see businesses make—and, more importantly, how you can avoid them to make 2025 your best year yet.
Not Investing Enough in Your Advertising Budget
One of the biggest mistakes businesses make is not setting aside enough money to reach their marketing goals. Sure, it’s easy to go with a smaller “starter budget” of 5-7% of your yearly revenue, but that’s usually not enough for steady growth. If you really want to see results, aim for 10-14%. And if you’re rolling out a new product or opening up new locations, you might need to bump that up to 15-20%. The key is to match your budget to what you’re trying to achieve—bigger goals need bigger investments.
Skipping Strategy Sessions That Help Maximize Your Budget
Some businesses skip the planning step and jump straight into running campaigns to save money—but this often backfires. Without a solid strategy, your campaigns can end up all over the place, wasting time and money. Even if you’re managing your ads in-house, make sure you set aside time and resources for proper planning. Or, consider hiring a pro to create a clear, data-backed strategy your team can follow. It might seem like extra work, but a good strategy is key to getting the most out of your advertising budget.
Ignoring Historical Data As An Advertising Budget Guide
So, you think that a shiny new campaign is a great idea for 2025. Meanwhile, last year’s performance analytics are right there, practically calling, “Don’t forget what happened last year!”. Ignoring those numbers is like driving blind—it’s a surefire way to waste your hard-earned dollars.
Businesses that use data-driven strategies see a whopping 60% higher ROI on their marketing spend, according to HubSpot. It can make the difference between just scraping by and watching your business thrive. How do you make data your best friend?
Forgetting to Allow For HST and DST Taxes in Your Advertising Budget
Canada’s Digital Services Tax (DST) is relatively new, and many businesses will forget to account for it when budgeting. This 3% fee, applied to digital advertising with platforms like Google, is in addition to the HST, and can significantly inflate your ad spend, especially if you're running high-budget campaigns. Be sure to factor these fees into your planning to avoid sticker shock when invoices roll in.
Relying on Boosted Posts Instead of Real Campaigns When You Have Lofty Goals
Boosting posts on Facebook or Instagram might seem like a quick and easy win, but it’s not the best use of your budget. Boosts often come with extra fees, especially if they’re running on Apple devices, where platform cuts take a bite out of your spend. A smarter move? Put your money into professionally managed ad campaigns. They give you better targeting, deeper insights, and a much higher return on your investment (ROI).
Expecting One Internal Person to Handle All Your Advertising And Social Media
Thinking of hiring one person to handle all your social media and advertising? It might seem like a budget-friendly idea, but it could end up costing you more. Social media managers are awesome at creating content, but they might not be experts in strategy, ad optimization, or analytics. Plus, managing multiple platforms, running ad campaigns, engaging with your audience, and keeping up with trends is a lot for one person to handle. Working with an agency means you get a whole team of specialists who take care of everything – plus it’s a great support system for that superhero who has to manage it all.?
Not Creating A Buffer To Fall Back On In Your Advertising Budget
Let’s be honest—who hasn’t had a marketing campaign blow right past the budget? It always starts with the best intentions, but then there are unexpected expenses—maybe you need to boost an ad last minute, jump on a hot new social media trend, or completely shift gears halfway through. Without a backup plan, those surprises can really throw you off track.
To stay ahead of the curve, plan for the unexpected: Reserve about 10% of your total budget as a “just in case” fund. This little cushion lets you handle surprises without panicking or cutting into other campaigns.
Having a buffer also lets you jump on unplanned opportunities: Whether it’s a new platform like Threads or a partnership with a trending influencer, having that extra wiggle room ensures you’re ready to take advantage of opportunities that can level up your strategy.
Failing to Monitor and Adjust Campaigns
Advertising isn’t something you can just set up and leave to run on its own. Many businesses forget to keep an eye on how their campaigns are performing and make changes along the way, which can lead to wasted money and missed opportunities. Whether you’re handling campaigns yourself or working with an agency, it’s important to schedule regular check-ins to see what’s working, what’s not, and how to improve.
Not Being Open To Trying New Formats And Formulas
It’s easy to stick with what’s worked in the past, whether that’s email marketing or social media ads. But relying too heavily on just one channel is risky. If algorithms change or people’s habits shift (which, let’s face it, they will), your whole strategy could fall apart.
Be sure to spread your efforts: Put your budget into a mix of channels—email, social media, paid ads, and traditional marketing. Balance your budgets to focus on the one that’s getting the best results and be prepared to switch things up in case a popular channel disappears tomorrow (which is not as crazy as it sounds).
Marketing isn’t one-size-fits-all. What works for one business might not work for you. Keep experimenting to find the right fit.
How to Start Building a Successful Advertising Budget
We get it—budgeting is probably not your favourite task, but it’s one of the most important things you’ll do for your business in 2025. Here are some simple tips to help you get started:
Skip The Advertising Budget Mistakes. We Can Make The Process Easier For You. Ask For Our Help.
Avoiding these budgeting mistakes can make a world of difference in your advertising outcomes. Whether you’re working with an agency, an in-house team, or managing your own campaigns, thoughtful planning is key. Account for taxes, invest in expertise, and give your campaigns the time and resources they need to thrive.?
At 3SIXTY Marketing Solutions, our goal is to help you plan out an advertising strategy for 2025 and make sure the budget is aligned properly to make it a roaring success. Plus, we can manage the whole thing for you, too. A plan is fabulous but, it doesn’t get you anywhere if you don’t execute it effectively.?
Are you ready to make 2025 your most successful year yet? Call 647-250-1494, or book a free consultation today and let’s start planning together. It will not only eliminate the guesswork but a lot of your stressors as well.