How Much Should You Spend
That's a question many business owners face, and there's no easy answer. The amount you allocate depends on various factors, including your industry, target market, and marketing goals. But to ensure you're getting the most for your investment, it's important to understand the different aspects of digital marketing and what each one costs. So read on to learn more about how much you should be spending on digital marketing!
What Is Digital Marketing & What Are Its Objectives
Digital marketing is an increasingly important part of any business's overall marketing strategy. It's the process of using online channels to promote and sell products or services. The objectives of digital marketing can vary depending on the business, but some common goals include increasing brand awareness, generating leads and sales, and building customer loyalty.
Factors To Consider When Allocating Your Budget
Figure Out Your Goals
The first step in deciding how much to spend on digital marketing is to figure out your goals. What are you hoping to achieve with your digital marketing campaign? Are you looking to increase brand awareness, drive traffic to your website, or generate leads? Once you know what your goals are, you can start putting together a budget to help achieve them.
Consider Your Target Audience
Another important factor to consider when deciding your digital marketing budget is your target audience. Who are you trying to reach with your campaign? If you're trying to reach a large audience, you'll need to spend more money on your campaign than if you're only targeting a small group of people.
Look at Your Competition
When putting together a digital marketing budget, it's also important to look at your competition. How much are they spending on their digital marketing campaigns? If they're spending more than you are, you'll need to increase your budget to stay competitive. However, if they're spending less than you are, you may be able to save money by decreasing your budget.
Consider Your Businesses Size
The size of your business is another essential factor to consider when deciding what your marketing spend should be. If you're a small or medium-sized business, you'll likely have a smaller budget than a larger enterprise. However, that doesn't mean you can't compete with larger businesses – you'll just need to be more strategic about how you spend your money.
Choose the Right Channels
There are a variety of digital marketing channels available, and each one has its own cost associated with it. So when you're putting together your budget, be sure to consider what channels your customers are coming from and how that factors into what channels will be most effective for you.
Types of Digital Marketing & Their Associated Costs
Logo & Branding
Your logo is one of the first things potential customers will see, so it's vital to make sure it's high-quality and represents your brand well. Your logo & branding guidelines will set the rules for everything else that will follow for your business marketing; colors, fonts, etc. The cost of creating a logo can vary depending on the complexity of the design and the number of revisions you need. Learn more about what makes a great logo here.
New Website or Website Refresh ($18,000+)
Your website is one of the most important aspects of your digital marketing campaign, so it must be well-designed and function properly. If you don't have a website, you'll need to budget for the cost of having one built. If you already have a website, you may just need to budget for a refresh if it's outdated or not mobile-friendly.
Search Engine Optimization (SEO)
SEO is the process of optimizing your website for Google search to earn higher web traffic levels and improve your visibility. The cost of SEO can vary depending on the size of your website and the complexity of your industry.
Paid Search Advertising & Display Advertising ($750 - $2,000/month)
Paid search advertising, also known as Google Ads, is a form of digital marketing where you pay Google to show your ad when someone searches for certain keywords. Display advertising is a form of online advertising comprising of banner ads, video ads, and other types of rich media.
Social Media Marketing
Social media marketing uses social media channels like Facebook, Twitter, and LinkedIn to promote your business. Social media is an excellent way for small businesses to start their online marketing. Social media lets your build your online reputation while also engaging directly with potential and current customers.
Email Marketing
Email marketing is a form of digital marketing that involves sending out email newsletters, promotional offers, and other types of email content to your subscribers. Learn about the top eight benefits of email marketing here.
Analytics & Reporting
Analytics and reporting are essential for measuring the success of your digital marketing campaign. Without data, you won't be able to track your progress or see what's working and what isn't.
Photography
Photography is not often thought about when thinking about a digital marketing strategy, but one of the most crucial pieces! Investing in a professional photographer can yield a high return on investment, especially since you use the photos for multiple marketing channels. Professional photos can be used for your website, social media, email marketing, and more.
How Can You Measure the ROI of Your Digital Marketing Efforts?
Google Analytics
When considering your digital marketing budget, it's essential to consider how you will measure your campaign's success. Analytics and reporting are necessary for measuring the ROI of your digital marketing efforts.
Conversion Tracking
Conversion tracking is tracking users' actions on your website after they see or click on your ad. This can be anything from filling out a form to making a purchase. They are a really clear way to see if your paid marketing strategies are paying off.
Ask “How did you hear about us?”
If you're not using conversion tracking, then you can always ask your customers how they heard about you. This is a great way to get feedback on the effectiveness of your marketing channels. Another way to measure the ROI of your digital marketing campaign is to send out surveys to your customers. Surveys are a great way to collect feedback on all aspects of your business, not just your marketing.
So What Is The Right Digital Marketing Strategy For Your Business?
As you can see the answer to this question depends on a number of factors, including your budget, your goals, and your target audience. If you're just starting out, you may want to invest in some basic digital marketing strategies like SEO and social media marketing. Once you've established a presence online, you can start to experiment with more expensive tactics such as paid advertising, and email marketing.
We know this is a lot to take in and there is a lot to consider when thinking about your digital marketing budget. If you need help deciding your digital marketing budgets, our team of experts can help! We're here to help assess your goals and budget and work with you to create a customized digital marketing plan for your business. Schedule your consultation today!
