Is your event budget setting you up for success? In this guide we'll look at tips, best practices and examples for creating a reliable event marketing budget.
The many moving parts of a live event strategy are bound together by the event budget. Given that an event's financial foundation is directly related to the event outcome, creating a thorough and realistic event budget is a key ingredient to the recipe for event success.
In fact, creating a sound event budget is more important than ever before as more money is being invested into the event space. According to Forrester Research, CMOs of B2B companies spend 24% of their marketing budget on live events. Investing such a significant amount to live events means that CMO’s believe in its ROI and event ROI can only be properly calculated with proper event budgeting. Other event marketing statistics show that growing companies are also looking to invest more dollars into their event strategy.
The Event Success Formula report shows that overperforming organizations plan to increase their event budget by an average of $7,500.
This growth of investment in event marketing strategies marks a vote of confidence in the industry and an indicator that mapping out a detailed budget is necessary for event success. With the dollar amount per event campaign steadily increasing, properly allocating and intelligently spending that dollar is important for a strong event ROI.
The following blog post is meant to serve as a guide as you create your event budget that will reduce stress and increase your ability to focus on the parts that will elevate your event. These tips and best practices should not only assist you in creating a sound event budget but also worth establishing a repeatable process through which an event budget will be successfully mapped out and executed for future event marketing campaigns.How to Approach an Event Budgeting Strategy
Before diving into the components of the event budget and getting neck deep in vendor research, certain best practices should be kept in mind. If you solidify a mindset that is composed of the following tips, your event budgeting process will be much smoother and streamlined than if you did not.1) Establish Your Goals
The main purpose of an event budget should not be to solely keep tabs on spending. Rather, the purpose should be to help the organizer properly allocate funds to the event elements that are of most value. By stating how much you will spend on each component, the budget becomes a reflection of what parts of the event are most important to you. For example, the event marketing manager at ZoomInfo makes sure she allocates her budget based on the most important pieces that will lead to event success.
“Your event budget is a direct reflection of your event vision and what it is you want to achieve. Because the Growth Acceleration Summit is a conference focusing on the impact of aligning marketing and sales, we wanted to make sure to secure a venue that would facilitate communication and collaboration. For that reason, finding the perfect venue was a big part of our budget.”
- Morgan Santapaola, Zoominfo, Event Marketing Manager
2) Use Historical Data
In the case that you’ve executed an event marketing strategy before, make sure to utilize all previous data and templates that either you or a previous team member have used. Doing so will help save a lot of time and help inform decisions you will have to make during the budget planning process.
Let’s say that you’ve recently joined the events team of a company that is putting together their 4th annual digital marketing summit. Before diving into your own research, you’ll want to ask other members on the team for resources and research they had used for the previous three events.
Having this information on file will make the budgeting process much simpler and quicker as you will already have the right people to reach out to, especially if the partnership worked well for previous events. It may be easy to get caught up in the upcoming event and become obsessed with finding the perfect deal for each event element, but doing so may lead to lot of time and energy wasted. Rely on previous research and data to make things simpler for everyone involved.
3) Pay Attention to Detail
When it comes to an event budget, there is no such thing as being too detailed. Every piece of information relevant to that particular budget item should be included in a “description” section within the budget plan. This will help when having to make a decision down the line as well as future event planners who refer to your budget plan.
For example, if you are looking to purchase event “swag” to hand out to attendees, be detailed with each item. If one of the items being ordered are T-shirts, specify how many of each size are being ordered and cost per shirt. Have a description section for any additional notes such as arrival date or design specifications. It would also be helpful to include a screenshot of the T-shirt so you can visualize the end product. The more details, the better.
4) Overcommunicate with Stakeholders
When it comes to financial planning, all relevant stakeholders should always be on the same page. Internally, this means communicating key budget information with the team members who are in charge of financial oversight of the event. For example, if there’s been a budget cut on venue expenses and the person in charge of venue sourcing is unaware, you may end up securing a space you can’t afford.
Similarly when dealing with external communication, you’ll want to be overly communicative and crystal clear with all relevant event vendors. Let’s say that during the early stages of the buying process, you and the venue owner discussed a certain price but after a few more discussions, you’re about to sign the dotted line and you see the price rose by 15%. Assuming there were no ill intentions on the vendor’s part, there were definitely details that were overlooked or not properly communicated. To avoid surprises like these, be transparent and upfront every step of the way. In other words, overcommunicate.
Effective budgeting doesn’t only consist of finding the best deals. It also means knowing what to spend money on. The best way to properly allocate your funds is to be aware of event industry trends and understand what will be good investments for your event overall. Similarly, being knowledgeable of event trends will let you know which solutions are no longer as effective as they were in the past.
For example, if you are attending a tradeshow as an exhibitor, you might be considering to hire an onsite entertainer such as a magician. However, if the tradeshow is heavily focused on technology (which many are), then a magician might seem a bit past the times. A better use of your budget may be to invest in a virtual reality headset that allow people to experience a scenario that relates to your product. By having a good sense of what is gaining traction in the industry and what has become outdated, you’ll end up having a much smarter and effective event budget.
For more in-depth analysis of upcoming event industry trends, check out the 2018 Event Trends ebook.
Capturing the proper mindset before diving into the budget planning process is just as important as the budget itself. Clearly state your objectives and be disciplined in how you approach the process. Doing so will save you much time, energy, and headache down the line.
Event Budget Expenses
There are plenty of ways disassemble the elements of an event budget. However you wish to do so depends on your personal preference and the flow of your planning process. For most cases, you’ll find the following breakdown to be similar across budget plans. Here’s a basic breakdown of the most important expenses of an event budget.
The majority of your budget will most likely consist of onsite expenditures. After all, an event is about the live experience so you will want to invest as much that is necessary to ensure a memorable a rewarding experience. The following items will be the main elements of your onsite spending.
For larger events, the venue will incur the largest cost from the entire budget. Because this will be such a large spend, you will want to be carry out all budgeting best practices for this process.
First, make sure that the venue aligns with your overarching event goals. If the objective is to facilitate as much networking and creative collaboration as possible, book a venue that provides ample space and a natural flowing walkway for attendees to easily converse with one another.
When it comes to the actual reaching out process, use the information you have on file. If there are venues you’ve worked with or considered working with in the past, use those contacts as a starting point.
Once the negotiations are underway, this is when you will want to gather as many details as much as possible. Make sure to overcommunicate your specific needs, your goals for the event, and the amount of support you’ll want from the venue which may be onsite staff and catering. Because this will be a larger expenditure, be sure to have multiple venues in the running.
Having options to choose from will give you a better idea of what you ultimately want as well as provide leverage when negotiating with each vendor. Choosing a venue is an important decision so make sure to allocate enough time and funds to the process.
To learn more about perfecting the venue search process, read the ebook below.
The speakers will also be a very important and significant part of the event budget. This is an area that will require a high willingness to spend because having a strong speaking panel will be a main way to attract attendees. In many ways your speakers will be the “face” of the event as you will use their personal brands to elevate your own event brand.
But also make sure to choose speakers who align with your event vision and will add an interesting angle to your event content. If your conference is focusing on the future of smartphones, it would make more sense to book a senior engineer from Apple as opposed to a social media thought leader. Though the latter may be more well known, choosing an Apple engineer would align more closely to the event content and actually offer value to attendees.
3) Staffing Costs
One expense that can sneak up on you on the day of the event is the cost of onsite event staffing. The team that will help you with registration, directing attendees to their relevant rooms, and greeting them upon arrival will prove to be a vital part of your event experience. Thus, you will want to keep them happy and energized for the duration of the event. Meal costs, travel plans, and accommodations should be things to consider for your event staff. If it is communicated beforehand that these costs will be covered, you will want to include them on your budget sheet as they can easily add up to a significant sum.
4) Signage and Event Branding
Creating a memorable event experience requires you to bring your event brand to life. Discuss and strategize what this might look like and make sure to set aside sufficient funds to purchase enough visual elements that will make for an amazing onsite experience.
Below you’ll see how HubSpot uses ample branding all across their annual INBOUND event. From large banners to massive 3D signs, the INBOUND conference becomes its own universe due to the strong event brand throughout. Having a vision like this in mind when planning the event budget will help you better understand what is needed and how much should be dedicated to creating the event brand.
5) Unique Attendee Experiences
With interactive technology becoming more advanced each year, having specific areas dedicated to enhanced attendee experiences will make your event more memorable. The rise of artificial intelligence and virtual/augmented reality makes it easy for attendees to engage in onsite activities that expand their imagination. Look into technologies that align with your event content and will be a unique experience for attendees.
Companies like VNTANA are transforming how consumers are engaging with products. Their patented interactive hologram technology allows people to see themselves next to or inside a physical product they are demoing. VNTANA is currently building a hologram car configurator that will allow customers to actually see themselves inside their dream car.
Technology like these are what will take the attendee experience to the next level. Make sure to do research on the gadgets and devices that would align with your specific event content and have the potential to be the “wow” factor at the event.
Though this part may not only be relevant to onsite needs, it is definitely a fund you will want to set aside early on in the planning process. Event organizing is an unpredictable journey and there will surely be situations in which you will need to tap into your emergency fund.
Perhaps a keynote speaker cancels a week before the event and you need to find an equally impressive replacement. Chances are the new speaker will cost more than the original speaker because he or she is being asked to present on such short notice. Having an emergency fund for scenarios like these will ease the chaos of the situation and allow you to still have enough focus and energy to execute a successful event.
Event Technology Expenses
You’ll want to allocate your budget towards the event elements and marketing tools that will be of most value to both you as the organizer and to your attendees. Given today’s tech-centric industry, investing in different forms of event technology will be a smart way to use your budget.
1) Event Success Platform - An all-in-one event success platform that fits your event goals will likely be the best investment you can make with your event budget. This is because the right management software will be the gift that keeps on giving. The amount of organization, streamlining, and insights that you will gain from this technology will help inform decisions for not only the event you are currently planning but for all future event strategies as well.
From event registration to contact management, choosing the right event management software will be a foundational piece to your event planning process as well as the attendee experience. So make sure to allocate sufficient funds and decision-making time for the particular part of your budget. It could make all the difference.
For more information on how to choose the right platform for you, check out the Event Software Buyers Guide.
2) Event App - An equally important aspect of the event planning process and the overall attendee experience will be your event app. Often times your event management software provider will have an event app that they offer as part of the package. You’ll want to allocate sufficient funds for the event app as it will be a great source of data from the backend as well as a pivotal portion of the attendee experience.
Once the event technology has been chosen, another significant chunk of the budget should be dedicated to your overall marketing strategy for the event. Of course there are countless channels and methods that you could put your money towards, but here are a few popular event promotional strategies that event organizers take.
1) Paid Search - If you anticipate that many potential attendees will be using online search to find events similar to yours, consider dedicating some of your promotional budget towards SEO and paid search. The most popular platform used to paid search strategy is Google AdWords.
To give a brief breakdown of its functionality, Google AdWords allows advertisers to bid on certain keywords that they wish to rank for. For example, if you are organizing a low scale startup event in San Francisco, below are a few keywords you may want to bid for.
Based on information such as monthly search volume and overall demand for that keyword, you’ll want to decide on a price that keeps you competitive among others who are also bidding for that keyword. Also keep in mind that for Google AdWords, you will only be charged when someone clicks on your link. Take these factors into consideration as you strategize how much of your budget you should allocate to paid search.
2) Public Relations - Investing in more traditional forms of event promotion could be a worthwhile investment. In today’s digital age, public relations largely consists of having your event information be published on all relevant outlets. This is where investing in PR can come in handy. A PR team or agency will have both the knowledge and the network to make sure that your event information and all articles surrounding your event will be published on the relevant outlets and publications that will maximize event exposure.Instead of using an agent, you can also do the PR yourself by being a part of a PR network or using specific platform that is designed to help you with PR. Below is a list of PR networks you can explore. Note that each comes with different price tiers and analytics functions:
3) Paid Social Media - Another popular form of digital advertising, putting money behind social media campaigns could prove to be a great use of your event budget. All major social media platforms have an ad offering and thus the main task would be to come up with the right balance of funds for each platform to ensure a wide yet still targeted reach.
As illustrated in the Guide to Facebook Event Promotion, the platform has one of the more robust advertising platforms out there—giving advertisers the ability to achieve massive reach with minimal effort. Ads can be served based on specific demographic information such as age and geographical location. They can also be served to those who have visited your event website which is a form of retargeting.
Ads can also be served on a “connections” basis which means the ads will be seen by those whose friends have already registered for your event. This is just a brief summary of what Facebook ads are capable of. For more tips on this form of event promotion and overall best practices, you can take a look at what the social media experts had to say on the topic.
Event Budgeting Template
Putting together the key elements of an event budget, below you can find a simple event budgeting template that provides an overview of the main expenses.
|Category||Description||Contact||Estimated Cost||Actual Cost|
|Venue||5 day email@example.com||$50,000||$45,000|
|Event Staffing||12 member team - all expenses firstname.lastname@example.org||$6,000||$5,400|
|Speakers||1 speaking email@example.com||$10,000||$12,000|
|Paid Search||Google AdWordsfirstname.lastname@example.org||$6,000||$5,000|
|PR||3rd Party Agency||agent@PRagency.com||$5,000||$4,000|
Balancing Event Budget and Event ROI
Of course you can add more columns as you see fit. This example is The above template can be organized into a spreadsheet either through Google Sheets or Excel. Wherever you choose to store your budget plan, make sure that this data is made available to only those who need this information as you’ll want to keep finances as confidential as possible.
Now that we’ve discussed the basics of event budgeting and the standard costs that go into the budget plan, it would be worthwhile to explain the relationship between event budget and event ROI. The main reason for an event budget is not only to keep tabs on your spending. Understanding the bigger picture, organizing a comprehensive event budget is a crucial step in properly calculating your return on investment.
By definition, everything that is spent within your event budget is an investment. You are hoping that these expenditures will lead to favorable business outcomes such as greater pipeline value, increased sales opportunities, or, more simply, a profit from event ticket sales. Similar to how we discussed the importance of articulating your event goals, establishing event ROI is a related process. Outlining the event ROI is simply the act of making your goals more measurable.
For more in-depth information on event ROI, read through the Event ROI and Marketing Attribution Guide. Combining this guide on event budgeting with the event ROI guide will help paint the bigger picture that encapsulates event success.
Meticulous planning is an imperative ingredient to putting together a successful event. And as an event professional, there are few forms of planning that are more important than event budgeting. A detailed, organized, and comprehensive event budget will help you allocate your funds intelligently as well as provide the necessary data to calculate accurate event ROI. As you put together your own event budget, we hope this guide will help you get a bit closer to your definition of event success.