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How to Set a Marketing Budget You Can Defend to the Board

A method for sizing marketing investment based on targets, unit economics and channel efficiency.

14 April 2026 · 6 min read · The NOVYXO Team

Work backwards from revenue targets

Start with the revenue goal, apply average order value and close rates, and calculate the leads required. That figure, multiplied by expected cost per lead, is your budget floor.

Separate testing from proven spend

Ring-fence a portion of budget for experimentation. Without it, an account slowly stagnates around whatever worked eighteen months ago.

Review quarterly, not annually

Channel efficiency shifts throughout the year. Quarterly reallocation keeps budget aligned with where returns are strongest.

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