A digital marketing manager knows that their organization has a fixed annual budget for the upcoming year. In order to test new initiatives, they will need some flexibility to create campaign experiments. Which best practice should they follow in order to create budget flexibility within their clearly defined annual budget?

Send a quarterly budget review to their supervisor to request additional budget for testing in the upcoming quarter.

Review industry reports to predict query demand for the coming year and what budget level will be required.

Plan ahead by setting aside a percentage of budget to be used for testing and reacting to market changes.

Set up a monthly or weekly sync with the finance team to share opportunities and results to encourage budget flexibility and collaboration.


Choose an option to see if it’s correct. Check the explanation below. Learn Smarter, not Harder.

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Explanation: A digital marketing manager knows that their organization has a fixed annual budget for the upcoming year. In order to test new initiatives, they will need some flexibility to create campaign experiments. Which best practice should they follow in order to create budget flexibility within their clearly defined annual budget?


Explanation: The selected answer is **Plan ahead by setting aside a percentage of budget to be used for testing and reacting to market changes**. This best practice enables the digital marketing manager to create budget flexibility within the organization's fixed annual budget for the upcoming year. By proactively allocating a percentage of the budget specifically for testing new initiatives and responding to market changes, the manager ensures that there are resources available to explore innovative strategies and adapt to evolving market dynamics without exceeding the overall budget constraints. This approach not only allows for experimentation and agility in campaign management but also demonstrates prudent financial planning and risk management, as it mitigates the potential impact of unsuccessful tests on the organization's overall budget allocation. Therefore, by setting aside a dedicated portion of the budget for testing and market responsiveness, the digital marketing manager can effectively create budget flexibility within the framework of the organization's clearly defined annual budget, enabling them to pursue new initiatives and drive continuous improvement in their marketing efforts.
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