Are you spending enough on digital marketing? Is it taking up more of your budget than it should?
These are the kinds of questions business owners and executives tend to struggle with, especially when they are in the process of establishing or reshuffling their Internet marketing campaigns.
There isn’t any one perfect answer that will apply to every company and situation, of course, but here are some good tips you can follow when setting a digital marketing budget:
Start With a Reasonable Figure
Although much will depend on your industry, location, and Internet marketing needs, lots of businesses settle on a figure that falls somewhere around 5% of gross revenue. Even if that seems like too much or too little for what you’re planning, feel free to use that number as a starting point.
Don’t Put All Your Eggs in One Basket
Once you’ve determined what you can afford to devote to Internet marketing, work with your digital agency to decide which strategies and ideas make the most sense for your business. Take care not to put all of your eggs in one basket, though. Things like search engine optimization, pay-per-click advertising, and social networking are all valuable, but you don’t want to devote all of your budget to any of them individually.
Over Time, Follow an 80/20 Strategy
As your campaigns grow your bottom line, the investment you make in digital marketing should grow as well. A good rule of thumb is to follow an 80/20 strategy, where 80% of your digital marketing budget goes toward tactics that are already showing a positive return, and the remaining 20% to new projects or methods you want to try.
Remember, You Need to Budget More Than Money
Obviously, a digital marketing budget is going to entail specific dollar amounts. Don’t forget, though, that time is often required (and is just as important) in order to plan campaigns, review progress, and come up with creative ideas.
Follow these tips for setting a digital marketing budget, and then remember: The more effort, attention, and resources you devote to the job now, the more profits you’ll have to work with in the future.
Could an insightful 15-minute marketing analysis change the way you see the future of your business? Contact Revital Agency in St. Petersburg today at 727.289.6549 to find out!