Why your ad budget is only part of your marketing expenses
Picture a clothing store in Tashkent. A set amount went into Meta Ads this month, and the manager divides it by the number of leads from Instagram. The cost per lead looks great. But the photographer who shot the collection, the SMM specialist, the email tool subscription and the discount in the promotion were never added. The real cost of a customer is higher, and the channel looks better than it is.
That leads to decisions made blind: you scale a channel that does not pay back, or cut one that quietly works. So the first job of tracking is to gather every cost in one place under clear names.
What counts as marketing expenses
The same set of categories works for most companies, from a beauty salon to a wholesaler selling on Uzum or OLX:
- Media: paid social, search, bloggers, Telegram channels, outdoor, radio and TV
- Production: design, photo and video, print, signage
- Contractors: agencies, freelancers, consultants, research
- Salaries and bonuses of marketing staff; if someone splits their time, count their share
- Tools: CRM, email and messaging services, analytics, telephony, website builders
- Events and website: exhibitions, presentations, sponsorship, plus development, hosting and domains
- Promotions and loyalty: discounts, gifts, bonuses and samples
How to slice the numbers so they are useful
A single total is not enough. Look at it from several angles.
By channel: search, social, Telegram, offline, email. Without this you cannot calculate cost per customer or payback for each channel. By goal: acquisition, retention, awareness, sales support. Quite often nearly everything goes to new people while the existing customer base gets nothing, even though a repeat sale usually costs less than the first one.
Fixed versus variable: salaries, subscriptions and website upkeep are paid every month whatever the result, while ads and promotions can be cut or raised quickly. That shows where you actually have room to move. Also separate direct costs, tied to a specific campaign, from indirect ones such as the head of marketing's salary. Spread indirect costs by a simple rule, for example in proportion to staff time.
Discounts, bonuses and barter cost money too
A discount does not feel like an expense because no payment leaves your account. But you gave up revenue you could have earned. If a promotion produced sales at a lower price, the revenue you did not collect is the cost of that promotion. Leave it out and every sale looks free.
Barter works the same way. If you gave a blogger a product or a service voucher, that is a cost even without cash. Record it at cost price, otherwise the blogger channel looks cheaper than it really is.
How to track marketing expenses in practice
A plain spreadsheet is enough to start. What matters is discipline and shared rules.
- One row per expense: date, category, channel or campaign, supplier, amount, note
- Agree a single list of categories with your accountant so invoices land in the right place
- Reconcile the sheet with accounting once a month to check that every bill is included
- Record payments for foreign services made by card in soums at the actual amount charged, so the budget matches reality
- Compare actuals with the plan and note the reasons for gaps
- Keep marketing separate from general administrative costs
Compare spending with results
Costs alone say little. For every channel you need a chain: spend, leads, customers, revenue, profit. From it you get cost per lead, cost per customer and payback. Calculate them using the full cost of the channel, not just the ads.
Also separate running costs from investments in the future. Ads respond fast, while a website, a photo archive and brand awareness work for a long time. Judge them by one month and long-term work will always lose, and you may drop something you need. Once a quarter, compare the shares by goal; it is a good moment to move part of the money elsewhere.
Where to start and how analytics helps
A manual sheet is fine at the start, but tying expenses to real sales from your CRM, phone calls and Telegram requests is harder. This is where end-to-end analytics helps: it follows the customer from ad to payment and gives you the cost of a customer for each channel.
If you want to put your tracking and reporting in order, the markdev team can set up end-to-end analytics and build a clear report for your business. Describe your task and we will discuss where to begin.
FAQ
Is a marketer's salary part of marketing expenses?
Yes. If the person works only on marketing, count the full salary and bonuses. If they combine roles, count the share of their working time.
Should discounts be counted as marketing expenses?
Yes. A discount is revenue you gave up to make a sale. Without it promotions look free and your cost per customer is understated.
How do I record foreign services paid in another currency?
Record the amount in soums at the actual card charge. That way the budget matches real spending and the accounting check.
How often should I review the cost structure?
Track continuously, reconcile with accounting monthly, and review the balance between acquisition and retention once a quarter.
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