If you don’t spend enough, your message won’t reach your target audience. If you spend too much, you are wasting money…
- How much money should I spend on digital marketing?
- How much for each channel – social, SEM, SEO, etc.?
- Do I need other tools, and how much do they cost?
Let’s try to start. Do you want to build brand awareness? Do you want to increase your customer base by 2% each month? Do you want to build customer loyalty? You need to set your goals before to decide your marketing budget. Otherwise, you won’t know what your budget can cover. For example, you can’t set up a Facebook campaign if you don’t know how much can you spend, because the engagement of your target customers in the area you want to advertise has a precise cost range. Can you afford it?
And what about your advertising strategy? What have you done last year? Which channels were most successful? Which ones failed? Which ones seemed promise for future tests?
If (as we hope) you have measured CTR, email subscribers, or leads generated, for any stage of the marketing funnel, conduct an analysis! If something delivered well in the recent past you must understand why, and if you need that result invest more on it. If it didn’t, think about why as well, and use it to do corrective actions.
Spend money on different strategies based on their success, it’s an investment, not a cost. Even though posting to Facebook is technically free, if Facebook advertising is working well for your activity, you’d better invest on it.
And don’t forget to set aside some money for testing new strategies – marketers keep up to 20% reserved for experimenting and trying new things.
You must build your own digital strategy. Have you invested your budget on radio advertising or flyers while your competitors have been connecting with customers online?
Well, you can easily “spy” your competitors online, whether it’s through SEM or social. If something is working well for your competitors, make it work also for you. But if they are wrong, use their mistakes to understand how to be better. You mustn’t copy your competitors’ digital strategy, but you have to know what they’re doing. And you also need to be up to date on industry trends.
When you’ve set your goals, analysed your past campaigns, and researched your industry trends, it’s time to define the numbers.
Your total marketing budget should usually be between 5% and 15% of your total revenue, digital marketing should be a substantial portion of your overall marketing budget: about 30%-60%, and maybe more for small enterprises.
Now you have decided your budget, but you still need to make sure that each euro will be well spent. First of all the budget must be divided into 4 areas: PPC (Pay Per Click), social media, content marketing and SEO (Search Engine Optimization). It’s possible that in your own digital strategy the budget for one (or more) of these areas will be “0”. It depends on your potential customers: who are them? Who is the target consumer? Who is interested in purchasing your product or service, and what are the specific demographics of this consumer (age, employment, sex, attitudes, etc.)? Often it is useful to compose a consumer profile to give the abstract idea of a "target consumer" a face and a personality that can then be used to shape the advertising message and to decide the correct channels. Last but not least remember that your marketing content represents your brand and your web marketing needs to be amazing to engage your potential customers. To be sure that these aspects, that represent quality, will be perfect, it’s necessary to invest in the help you need.
Choose the web agency that challenges you more, not the cheapest. They will be able to reach your target audience and, knowing your audience, they will determine not only what you have to share, but how to share it.