Creating a Digital B2C Marketing Budget, Range Rover
Range Rover need to plan the total cost of their digital marketing budget in order
to plan their future advertising campaign
Their monthly target objective is to generate of 4 000 contact forms (leads) per
month coming from their website
This target will be split for each digital support so that each team member knows
what they need to implement and how much they need to spend in order to
reach their objectives
We know the leads objective per digital marketing support (line 23 in the xls
sheet)
You will find all the key performance indicators in the xls sheet as long as the
cost for each marketing leverages
Complete all the grey cells of the xls sheet in order to define what will be the
necessary budget to reach the targets fixed
1- Display Advertising:
Display CPM (cost per 1000 impressions) is 5€
40% of the total numbers of leads are generated by the display campaign
1) What are the leads and visits objectives?
2) Keep in mind that 1 banner click = 1 visit
CTR (Impression/clicks) is 0,80%
What is the number of banners impressions objective?
3) What would be the total variable cost? The variable cost per lead?
All the fixed cost are proportionally shared according to the number of
leads generated by each marketing support
4) What would be the fixed cost? The total cost per lead and the necessary
monthly budget for Display advertising?
2- Adwords, SEO and Social Media:
1) What are the leads and visits objectives? (For Adwords, please keep in
mind that 1 click = 1 visit)
2) For Social Media, keeping in mind you can calculate what is the visit
objectives and you know how many visits generate a post, calculate the
number of posts objective
Jan-Feb 2022 – Paid & Social Ads
Creating a digital marketing budget
3) For SEO what would be the total variable cost? The variable cost per lead?
What would be the fixed cost? The total cost per lead and the necessary monthly
budget?
3- Email marketing Budget:
OBJECTIVES
The newsletter generates 15% of the total numbers of leads
One monthly newsletter is send to all the database
1) What are the leads and visits objectives?
2) What is the number of newsletter openings objective?
3) What is the number of emails sent objectives?
4) In order to refresh the database every month, 1% of the database need to be
recruited every month
How many emails need to be recruited per month?
COST
Range rover pay a CPL (Cost Per Lead) of 2 € per new email recruited
5) What would be the total variable cost associated with the recruitment of
this new emails? What is the variable cost per lead?
6) Keeping in mind lll the fixed cost are proportionally shared according to
the number of leads generated by each marketing support
What would be the fixed cost for email marketing? The total cost per lead? The
necessary monthly budget for email marketing?
4- Digital Budget
1) What is the total budget per marketing support? Overall? and the total
cost per lead?
The average basket value coming from a digital sales is 65 000 euros
2.5% of the digital generated leads are converted in effective sales
What would be the % of digital marketing budget compare to the digital
revenue generated
2) Keeping in mind that 15% of the sales are generated by their digital sales,
what is the total revenue that Land rover generate per month
Jan-Feb 2022 – Paid & Social Ads
Creating a digital marketing budget