Your digital marketing budget is a key component of your effective business strategy. It helps you outline how much money you will spend on various digital marketing activities and how those investments will help you achieve your business goals. Setting an appropriate budget for digital marketing budget is not easy. It requires thorough planning, research, and understanding of your target audience and the market in general. Read on to learn more.
How Much Should You Allocate Towards Digital Marketing Efforts?
Your digital marketing budget will vary depending on your specific business goals, size, funding available, etc. For a general idea regarding how much you should allocate, here are some statistics:
- According to CMO Survey, the average business allocates 9.5% of their gross revenue on online and offline marketing.
- In the digital marketing realm, video marketing is the leading channel.
- A survey by HubSpot suggests that content creation takes up to 46% of an average company’s marketing budget.
- Over half of digital marketing budget is allocated to paid channels, such as video, display, search, social advertising, etc.
How to Create an Effective Digital Marketing Budget
No matter how small or large your funding is, you can create an effective digital marketing budget and get the most out of your digital marketing efforts by following these guidelines:
Know Your Revenues and Costs
Assess your current situation. What are the costs of operating your business? What kind of value your digital marketing strategies generate? What are the expenses of converting a customer? Once you have the answers of such questions, you can then begin preparing for the future.
Establish Your Sales Funnel
Your sales funnel is one of the most important components of your digital marketing budget as it determines where you will be allocating your funds. So, establish it after thorough research and planning. Proper understanding of your sales funnel will help you determine where you may need to implement a digital marketing strategy to maximize results.
Set Your Goals
Set your business and digital marketing goals so you can allocate a budget to achieve those specific goals. You can set goals that focus on:
- Increasing subscribers
- Increasing leads
- Increasing brand recognition
- Increasing revenue and so on
Make sure that all the objectives of your company are planned and clear.
Determine What Strategies You Wish to Implement
Choosing the digital marketing strategies that best align with your goals is an important part of creating a digital marketing budget. According to statistics, the best strategies to allocate your budget in include:
- Search engine optimization
- PPC ads
- Social media advertising
- Content marketing
- Email marketing
Research Strategy Costs
Learn how much it costs to run your digital marketing campaigns in-house, with the help of freelancers, or by a digital marketing agency. Here are some details of these options:
- In-house: The costs when it comes to running in-house campaigns would incur in the form of supplies and wages.
- Freelancers: Freelancers typically change by the hour or per job.
- Digital Marketing Agency: If you hire the services of a digital marketing agency, you will get everything from people to software. These agencies work on a one-time project or they can provide recurring services for which they charge on monthly basis.
Finalize the Budget
Once you have performed all the above steps, you can finalize your digital marketing budget. It is recommended that you include all the details and specifics collected from your research when finalizing the budget.
The budget for digital marketing is never truly finalized. This is because priorities of such a budget shift when the trends change and the tools evolve. Analyzing your strategies and optimizing them after careful analysis is crucial to ensure the greatest returns. The help of a seasoned digital marketing firm is valuable in this regard.
Whether you need help creating a digital marketing budget, analyzing and optimizing strategies, designing innovative solutions, or more, get in touch with Universally Found. We provide the services you need to build an impressive online presence. Contact us today to get started.
References
https://www.molestreet.com/blog/allocate-digital-marketing-budget
https://www.webstrategiesinc.com/blog/how-much-budget-for-online-marketing