Research shows that most businesses dedicate around 20-30% of their total budget towards marketing.
However, each business is different, and you may find it challenging to decide how much you need to budget.
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Below you’ll discover some suggestions that’ll help you create a digital marketing budget for your business. Use these tips, and you’ll know how to attract customers, without depriving the other parts of your business.
Let’s begin!
Decide What Your Goals Are
Before you can set a concrete digital marketing budget, you first need to decide what your goals are. This is because your goals will determine the level of competition you will face. And the level of competition you face will determine how much you need to spend.
Suppose you want to acquire more customers with the help of Google AdWords.
You can use the Google Keyword Planner to discover how many existing advertisers are paying to target certain keywords. You can then take these figures, and use them to estimate the amount of money you’d need to spend on your campaigns.
This is just one example of how you can use the competition to determine how much you need to spend on your campaigns.
You can adopt a similar approach for any digital marketing method. All you need to do is look at what the competition is spending, and you then have a rough idea of how much you need to budget.
How Flexible Is Your Approach?
It’s worth remembering that some marketing tactics will cost more than others. For instance, you’ll generally find that LinkedIn Ads are more expensive than Facebook Ads. But if you’re targeting B2C audiences, you might want to invest in Facebook and TikTok ads to reach your desired demographic.
So, if you’re struggling to create an affordable marketing plan, maybe introduce some flexibility to your approach. You may really want to run PPC ads, but if you can’t make the numbers work, then it’s best to go for an alternative option.
Now, if you’re looking for affordable marketing ideas, you’ll have to be creative. You might need to run an influencer marketing campaign, or you may need to host some events that help generate brand awareness.
Now, such approaches might not provide the kind of ROI you’d experience when using traditional marketing methods. But they’re often a good way to help you generate your first set of customers so that you can eventually move onto more expensive methods.
Do You Know What You’re Doing?
If you don’t know much about digital marketing, there’s a good chance that you might end up wasting some of your marketing budgets.
That’s because you might allocate funds to a marketing method that isn’t a good fit for your business. You may also ignore things like ‘conversion rate optimization’ thereby limiting your ability to squeeze a lot out of a small budget.
Thus, if you’re a digital marketing novice, it can be a good idea to hire a digital marketing agency like ignitedigital.com. In doing so, you can put experts in charge of your marketing budget. This can allow you to achieve great results, even if you don’t have much to spend.
Do You Know How to Create a Digital Marketing Budget?
You should now understand how you can create a digital marketing budget for your business.
Developing a marketing budget is hard, and so there’s a good chance you might not get things right the first time around. If this happens, you’ll need to take a step back and determine what went wrong.
Luckily, digital marketing can provide you with a lot of data. You can, therefore, use this data, to determine where your campaigns went wrong, and how you can change things for the better.
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