Throughout our careers, digital marketing professionals answer one question more than quite another: “How much will it cost?” It doesn't matter if you’re a business owner, marketing manager, independent contractor, or work for a digital marketing agency, your ability to manage your marketing budget effectively plays an outsized part in your success.
There are usually 4 stages which eventually lead to an opportunity to convert into a customer and every stage has its own marketing channel, marketing message, and marketing expenditure.
When people are just starting to know about your brand/ product/ service.
When people start showing interest in your ad, article by clicking and by visiting your website/ landing page.
When people express their desire to understand more about your brand/product/ service.
When people opt-in and pay for your product/ service and have bought your product/ service and you want to keep them engaged to retain them.
To Help You Get Started, here is the Basic Layout of How You Should Start Planning for Your Budget:
1. Set Your Objectives: Think about the precise, measurable goals you’re looking to realize through digital marketing. Are you getting to generate brand awareness, create more brand loyalty, or are you merely looking to drive sales? Different tactics are required to hit these targets; selecting these tactics will have a big effect on your digital marketing plan, not to mention your budget.
2. Analyse Past Performance: If your business has tried digital marketing tactics before, check out them critically to work out what is going to work again. Where were your areas of success? Did your online paid advertising develop positive and meaningful traffic to your website? Did your search marketing efforts cause a better search ranking in Google?
Even if previous digital marketing strategies didn’t get you the results you had hoped for, there's still much insight present. Especially if your competition uses equivalent tactics more effectively, consider how your approaches are often tailored to satisfy your objectives and generate consistent results for your business.
3. Allocate Based on Past Success: Once you've got clearly-defined goals and a solid grasp of what has (and hasn’t) been working, you'll start building your budget to support your organization’s priorities. There is no one-size-fits-all solution in digital marketing; every business will have different needs counting on industry, niche, goals, and budget.
When you have to begin allocating your budget and resources, aim to strike a balance between short and long-term strategies. And when setting your digital marketing budget, make sure that you allocate resources to satisfy both your short and long-term goals.
4. Continually Monitor Results: Tools like Google Analytics will allow you to watch your advertising, website traffic, and more to ascertain what aspects of your strategy are the foremost effective. Further, monitoring tools will enable you to refine your approach to realize consistent results while making any necessary budget adjustments along the way.
Understanding your short and long-term objectives will assist in giving your budget context and permit you to allocate your resources to support your goals.