May 15, 2023

The Manager Says "Give Me Some Money"

Maybe your Social Media Marketing Manager wants to go "all out" in Paid Social in June. S/He thinks there is a huge opportunity - some newsletter says that customers will be receptive and they publish a bunch of charts and graphs illustrating "the opportunity". S/He says "Give Me Some Money!"

You have access to a Marketing Budget Experiment worksheet, so you enter the Budget Tab and you double your June investment in Social.


You click over to the P&L tab to obtain your outcome.


Then you compare this outcome to your Base Case, where business is forecast "as is".


Your Social Media Manager is excited.

You, on the other hand, are not thrilled.

Demand improves not only this year, but in the future as well.

  • $519,000 this year.
  • $251,000 next year (because the customers you inspire to purchase begin paying you back downstream).
  • $236,000 two years from now.
  • $207,000 three years from now.
  • $185,000 four years from now.

Your Social Media Manager says "SEE!!!".

You direct your Social Media Manager to the Variable Operating Profit line.
  • ($419,000) this year (uh oh).
  • $44,000 next year.
  • $46,000 two years from now.
  • $41,000 three years from now.
  • $38,000 four years from now.
  • A five year net loss of $250,000.

You tell your Social Media Manager "No".

As your Social Media Manager leaves your office (virtually or in person), you decide to see what might happen if you cut his/her budget by 50% in June (instead of doubling it). We'll look at that outcome tomorrow.


P.S.:  Intrigued? Contact me now (kevinh@minethatdata.com) for your Marketing Budget Experiment project ... click here for pricing details.

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