As you enter into Digital Marketing and understand the Importance of paid campaigns your brain is stormed with questions relating to the Budget of Digital Marketing.
How much should you be Spending on Online Marketing?
How much of that Digital Marketing budget should go to individual forms- Social Media, SEO etc?
What all different tools will be required?
First SET clear Goal and Direction.
Do you want to build a brand image?
Or increase sales? Do you just want to help the existing customer base?
Also Read : Role of Digital Marketing for your Brand growth
You need to set your marketing objective before assigning and allocating the resources. Without analysing this your expenses will never be able to cover the campaign objective.
If you have made efforts earlier then learn from your past mistakes. Analyse what worked previously and what failed. Allocate money based on result and success rather than the strategy cost. Also it is commonly said that 10% of your Digital marketing budget should be kept aside for experimentation.
If one of your investments does not work either kill it or make changes in it. Twitter is technically free but in case you get amazing growth from it; it would be nice to invest in it. Keep in mind not to toss away money on platforms that may be working for others but not for you.
And though you shouldn’t replicate your competitors’ strategy do be aware. If something works for them try and understand how. If it doesn’t then be careful to not commit the same mistake. Update yourselves with the latest trends.
Also Read : Social Media Planning and Calendar Creation
There are different calculators which decide the exact figure you should be spending based on demographics, target audience, your product, industry and so on.
Marketing spending according to recent studies based on industries showed:
Banking Finance Institutions: 9.2 %
Consumer Service: 21%
Tech/ Software : 8%
A few established firms however follow that marketing budget should be between 5 to 20% of total revenue. And between 10-50% of the marketing budget should be allocated to digital marketing. Digital Marketing spend should be further divided into SEO, PPC, content writing and social media.
( Source : Marketingcharts )
Keep in mind to Invest in Quality, Maintain Consistency, and Cater Requirements of the Audience.
Breakdown your requirements. While Digital Marketing requires both tools and content, manpower. It becomes your duty to break down your budget to accommodate both. For best results always plan your content creation. Some businesses may flourish from infographics and content based promotion while others may leave impact from video creation and video content. Hence in such a case budgeting would also require to accommodate recording equipment, writers, editors, graphic designers and other professionals.
The normal norm followed under this break-up ranges as:
Direct marketing expense: 40%
Social Media: 20%
Also as pointed earlier choose your platform. This is highly dependable on business and target audience. If you are a B2B organisation, you will be appealing to typically a higher upper management staff. In such a case the target audience and content should both be different. Whereas if you are dealing with a consumer audience probably at the lower end or section of society or appealing to older people; English language barrier may also be present. Hence again portability and platform is dependent on business and budget requirements may change accordingly.
Last but the most important, monitor your results.
Also Read : How to measure Digital marketing ROI?
Sometimes with even minute adjustments you can make major wonders. And all this can be attained only with regular assessment of your expenditure. There are many software tools available to monitor your progress.
Some statistical records and survey show and anticipate that:
Online videos will show the highest growth rate by 2021.
Social media advertising industry will also flourish and continue to grow. Search Engines will have the highest share in terms of expenditure.
Also paid searches, online advertising should account for 46% of entire marketing expenditure by 2022.
Also Youtube has been predicted to dominate as the most viewed social platform. Followed by Facebook and Instagram. Whatsapp and Twitter are expected to fall in public demand by the end of 2022.
Digital Marketing is becoming important with each and every passing day. Don’t be left behind in the race. Determine your Digital Marketing Budget and make it count.