“We’ve already got a budget – why bother with a forecast?”
It’s a common question, but in marcoms, where project scopes shift and client demand fluctuates, relying on just a budget is like flying blind. Both tools are essential – but they serve different purposes.
What’s the Difference?
Think of your budget as your agency’s financial plan – it outlines how you expect to spend money across the year on things like campaign costs, tools, freelancers, and team overhead. It sets limits, helps manage cash, and defines goals.
But marcoms rarely follow a straight line. That’s where forecasting comes in. Forecasts adjust with your reality – accounting for new client wins, delayed approvals, seasonal shifts, or unexpected expenses.
In short:
- Budget = the plan
- Forecast = the real-time GPS
You need both to stay agile and profitable.
Why Forecasting Matters in Marcoms
A forecast gives you a live view of your financial health. Say a client signs a big retainer early in the quarter, or campaign spending slows unexpectedly. A good forecast lets you react quickly – whether that means scaling your team, reallocating media spend, or holding off on new hires.
Budgets are static. Forecasts are dynamic. Together, they help you lead with confidence.
How to Use Budgeting and Forecasting Together
- Start with a Clear Budget
Plan your year based on expected retainers, project work, and overheads. - Layer in a Forecast
Update it monthly (or more often) to reflect pipeline changes, actual spend, and resourcing shifts. - Review and Adapt
Use the forecast to guide decisions – do you need to invest in new tools, hire faster, or pause spending?
Tips for Better Forecasting in Agencies
- Model different scenarios
Create best-, worst-, and likely-case forecasts. This gives you room to plan for client churn, project delays, or fast growth. - Make it collaborative
Involve account leads and sales teams. They know the pipeline and potential shifts better than anyone. - Learn from the misses
If your numbers fall short, investigate why. Was it a delayed launch? Underestimated scope creep? Use that insight to improve your next forecast.
Need help building out your finance team? At Simply360Search, we specialise in recruiting top finance talent for the marcoms industry – whether you’re growing fast or need strategic support. Lets connect!