Planning the marketing budget for 2026: Essential tips

Planning the marketing budget for the coming year is usually an annual challenge. However, 2026 brings specific factors that require more than just a simple inflation adjustment or a percentage increase on last year’s figures. The ever-changing dynamics of the digital landscape, the pressure for transparent ROI, and the rise of artificial intelligence (AI) are forcing marketing managers to rethink the fundamental pillars of their strategies. The goal is no longer simply to ‘have a budget’, but to build a flexible, data-driven model that can be justified to senior management, one that responds effectively to volatile market conditions and ensures sustainable growth.

In the following article, we will examine the key areas that should be at the heart of your budget planning for 2026 and offer practical tools for putting it together.

How digital advertising prices will change in 2026

The expectation that digital advertising prices will continue to rise is realistic, but with important nuances. Whilst demand for users’ attention remains high, three main factors will influence price dynamics:

1. Regulation and privacy (Post-Cookie World): Restrictions on third-party tracking and stricter regulations (GDPR, DMA) are increasing the importance – and therefore the price – of first-party data. Advertisers without a robust first-party data strategy will pay more for less targeted advertising. Platforms with high-quality first-party data (e.g. Google Search, Retail Media networks, certain publishers) may therefore see price increases.
2. Platform saturation and competition: Competition is fierce on the major platforms (Google, Meta, TikTok). However, in the B2B sector, there is strong pressure on LinkedIn and specialised networks. Expect a moderate but steady increase in CPC/CPM on key platforms, particularly in segments with high customer value (e.g. SaaS, financial services, industrial technologies).
3. The Impact of AI on Creatives and Targeting: Whilst AI reduces the costs of generating creatives and copy, it also improves advertisers’ efficiency in reaching their audience. Paradoxically, this may lead to more aggressive competition in auctions, as AI can test and optimise more quickly and effectively, thereby driving prices higher for less sophisticated players.

Budget recommendations: Do not increase spending across the board. Allocate 10–15% of your digital media budget to testing new formats (e.g. AI-generated video creatives, new ad types) and to strengthening your first-party data strategy (e.g. expanding CRM, testing data activation tools).

New approaches to budget allocation (value-based vs. performance-based logic)

Historically, budget allocation has often been driven by performance-based logic: how much do we invest to achieve a certain CPA (Cost Per Acquisition) or ROAS (Return On Ad Spend).

2026 is set to be the year of the transition to value-based allocation, particularly in B2B and e-commerce with repeat purchases. This model focuses on Lifetime Value (LTV) and the profitability of individual channels and campaigns, rather than short-term performance.

• Traditional model (CPA/ROAS): The campaign generates revenue of CZK 1,000,000 with a ROAS of 4:1. The budget is CZK 250,000. Profits are not taken into account.
• Value-based model (LTV/Profit): The campaign generates customers with an average LTV of CZK 50,000. The budget is allocated primarily to channels where customers with the highest LTV come from, even if their initial CPA is slightly higher. Investment in acquisition thus becomes an investment in long-term capital.

Budget recommendation: Include a budget line for analytical tools (or a consultant) in your budget planning, which will enable you to link marketing data with revenue, margin and LTV data from your CRM/ERP. The budget should be divided between short-term performance (direct revenue) and long-term development (LTV and brand building) in a ratio that reflects the maturity of your business.

Budget for AI, automation and data tools – how to determine it

Artificial intelligence is ubiquitous in marketing today. Its costs fall into three main categories:

1. AI as part of existing software (Hidden Cost): Most platforms (Meta Advantage, Google PMax) have AI built in. These costs are included in the price of the ad.
2. Tools for generating content and creatives (Cost of Creation): Tools such as Midjourney, ChatGPT/Copilot, Descript, Runway. These tools dramatically reduce production costs (particularly for video and visuals), but require a monthly/annual subscription. Typically, this represents an investment of less than 5% of the content budget.
3. Automation and data activation tools (Operational Cost): This includes CRM integration with marketing platforms, CDPs (Customer Data Platforms) or specialised tools for automated A/B testing and predictive analytics. This category represents the highest and most important investment.

Budget recommendations:

• Start with data: Before purchasing expensive CDPs, focus on data consolidation (e.g. Google Analytics 4, CRM) and hire an integration specialist to ensure data flows seamlessly.
• The 5–10% rule: Allocate 5–10% of your total marketing budget to the purchase, implementation and maintenance of data and automation tools (excluding basic marketing software such as Mailchimp/Hubspot/Salesforce). In high-value B2B transactions, this percentage should be higher.

Training: Include a budget for training your team to use the new AI tools. Without a skilled user, even the best AI tool is useless.

Changes in the cost of content, video and creative

Content remains king, but the way it is created is changing, which has a direct impact on costs.

Budget recommendation: Allocate 30% of the content budget to tool licences and training, 40% to strategic human-generated content (case studies, brand videos, in-depth e-books) and the remaining 30% to editorial work, optimisation and distribution.

How to build a flexible budget model for an unstable market

In times of economic turbulence and rapid technological change, a fixed annual budget is a recipe for failure. By 2026, it will be necessary to switch to Agile budgeting.

Key elements of an Agile budget:

1. Core vs. Contingency allocation:
   • Core Budget (70–80%): Covers stable, proven channels (SEO, brand building, essential system maintenance) and minimum personnel costs. These funds are allocated for the whole year and are difficult to reallocate.
   • Contingency/Testing Budget (20–30%): These funds are released quarterly based on clearly defined KPIs (e.g. revenue, LTV, MQLs). They are primarily intended for new channels, testing AI tools, or increasing the budget for the highest-performing channels.
2. Quarterly/Monthly Rolling Forecast: The budget is planned for the year, but is recalculated and revised in detail every quarter (Rolling Forecast). This ensures that marketing responds to actual performance and market changes.
3. Scenarios (What-if Analysis): Prepare three budget scenarios and be ready to activate them quickly:
   • Optimistic: Market growth, increase of X%.
   • Realistic: Conservative expectations, maintaining profitability.
   • Pessimistic (Crisis): Sudden drop in demand, where to save 15–20% of the budget without damaging the long-term brand.

Budget recommendations: Use tools (e.g. Google Sheets, BI tools) that allow for dynamic, real-time tracking of expenditure and simple simulation of fund transfers between channels.

How to justify the budget to senior management (realistic arguments)

Budget approval is often a battle for resources. Marketing teams must move away from metrics such as ‘number of likes’ and speak the language of business: Revenue, Margin, Profitability and Risk.

The best arguments for defending the 2026 budget:

1. The LTV and Profitability Argument (Value-based): Instead of: “We need an extra 10% to get more orders,” use: “Every million CZK invested in this channel generates X customers in the long term with an average LTV of 50,000 CZK, representing a 5:1 return on investment after two years. The budget is an investment in future cash flow.“
2. Risk and Brand Protection Argument: Defend the need to invest in SEO, brand building and data security (GA4, CRM, first-party data) as insurance against dependence on paid media and protection against regulation. „Reducing investment in SEO would increase our dependence on paid Google PPC by 20%, which is an unsustainable risk in the event of rising advertising costs.“
3. Argument: Automation and Savings: Investment in AI and automation should not be viewed as a cost, but as a capital expenditure that reduces operational costs (staff). „By investing CZK 300,000 in lead nurturing automation, we will reduce the time required by 1.5 FTE (Full-Time Equivalent), resulting in annual savings of CZK 900,000 and a 300% ROI in the first year.“

Competition and Market Share Argument: Use data from Google Trends, Social Media Listening or external market analysis. „Our top 3 competitors have increased their marketing investment by 15%. To maintain market share, you need to invest at least 8% more. Otherwise, you will lose ground and face a more difficult and costly re-acquisition in the future.“

The most common areas where Czech B2B companies are currently wasting money

Czech B2B companies, particularly those with longer sales cycles and higher prices, often spend in areas that have a low or unmeasurable impact on LTV and revenue. When drawing up the 2026 budget, these areas should be considered for review and cuts:

1. Sponsorship and events without LTV measurement (blind investments):
   • Broad sponsorship of regional events or conferences where there are no clear metrics for the number of conversions, MQLs or subsequent LTV from acquired leads. Solution: Limit to 2–3 key events and invest in high-quality follow-up and conversion tracking.
2. Excessive Number of Agencies and Tools (Vendor Overload):
   • Working with multiple agencies that compete with one another (e.g. SEO, PPC and content agencies that do not communicate). Or paying for numerous software licences with overlapping functions. Solution: Consolidate into a single strong integrated agency or in-house team and audit software licences.
3. Content that nobody reads (Ego-driven Content):
   • Creating content (e.g. incredibly detailed blog posts about technology) that answers internal questions rather than real customer problems at the start of the buying cycle (ToFu – Top of Funnel). Solution: Cut back on volume and increase investment in content focused on ToFu and BoFu (Bottom of Funnel – Case Studies, Price Lists).
4. Poor-quality lead nurturing and CRM data:

Marketing generates leads, but sales does not take them seriously because they are not qualified (insufficient segmentation, scoring). The budget spent on acquisition is then ‘lost’ in the gap between marketing and sales. Solution: Invest in lead qualification (MQL/SQL) and establish an SLA (Service Level Agreement) between marketing and sales.