2022-04-20 | 321 Print PDF
Creating a digital marketing budget in this 21st century where everything is going digital is a must, in fact, there is a better chance of your very first sale via digital marketing, why? because of the number of online audiences, you can easily target and reach.
There are so many channels that a digital marketer can use to achieve their goals when it comes to delivering online marketing deliverables which may differ from one business requirement to the other. This is why it is solely important to understand the goals that are required to attain from your digital marketing, prior to planning an online marketing strategy based on budget.
But in most cases, these digital marketing methods are mixed to form an inbound marketing strategy based on a sales funnel map. Yes, you read that right. Prior to establishing a digital marketing budget, you will need to execute your outlined marketing goals.
Now that we have a clear understanding of the need for online marketing we need to understand the mediums and how they are being used by brands and organizations.
From the survey done by Hook agency, we can have the following illustrations highlighting the importance of each digital marketing channel to companies and brands alike. We can see that one of the most predominant online marketing strategies for brands and businesses alike is to grow their SEO and organic presence, this only points to digital marketers are more interested in building organic reach and visibilities via Search Engine Optimization in contrast to blogging which comes second.
In another survey done by criteo paid display (paid advertisement) got more allocation in terms of marketing budget followed by social media and traditional marketing. It must be understood that these two results are based on a different kind of business model that these brands and organizations practice, ie either a B2B (Business to Business) or B2C (Business to Customers), so your marketing budget for any preferred channel should be based on what works for your type of business. For instance, my nature of business is under the B2B structure meaning I provide services/products for businesses to use and grow their business potential, B2C on the other hand are services/products that are from businesses directly to end-users. There are businesses with the hybrid model where they provide service to vendors who in turn make the business product/services accessible via them.
I have written some sounding articles on such marketing models such as 7 surefire B2B Lead Generation Strategies, Social Media Marketing vs Search Engine Marketing, Facebook Marketing for small business, and B2B Content Marketing Services which all touch on the concept and approach to drive marketing for these types of business models with relevant case studies where necessary.
But we are not here to discuss business models but on how to create a marketing budget, I intentionally branch out a little so that you can understand the right digital marketing strategy you will like to prioritize in your marketing budget setup.
For clarity content marketing and social media marketing are like two sides of the same coin, and why I will like to emphasize this is because a lot of businesses do neglect the inclusion of content marketing especially blogging...which is quite understandable as most brands or companies find it hard to write correlated topics or contents that are being searched and target them or fine-tune them to the context of their organization service/product values.
So most times, blogging or content marketing do fall short of the most marketing budgets...which shouldn't be so. It is best advised to either solicit an ace content creator or professional blogger to aid or JV (joint venture) in partnership with the firms in helping in creating such content that is viral and improves reach with visibility online for the brand or product/services of the organization.
When you are looking at creating a digital marketing budget, you need to consider the cost of the product itself, for you to be able to know your type of target audience in terms of financial capabilities. If your target audience is white-collar, blue-collar, or grey-collar, even the unemployed can be a target audience for sales of products.
It all depends on the underline cost to purchase, the value, and the profit. You need to have an idea of how much you are willing to spend out of your marketing budget that you can get back from your returns in sales.
For instance, we had a job to increase the sales of inverters and solar panels for a company, it is obvious that the target audience for this service/product is white-collar employed individuals.
We had a simple sales funnel which was a mix of digital marketing strategies and outbound marketing, we had to design a landing page that emphasis on the special discount offer (the same language was on every banner display ad and ad network we had placed online).
We drove traffic to this landing page, you might find this article useful How to Make Landing Page That Converts this, in turn, gave us the useful data information we could use to do outreach marketing, we did follow up on these leads by calling them and connecting with them via their emails and phone numbers.
While those that reach out to us via our social media adverts we were able to connect via their social handles, after the entire campaign had ended we were able to pull in a 30% increase in total revenue for that month for the company n respect to them not executing any online marketing at all. The images below showcase the results and the marketing budget we had for these digital marketing mediums.
Google Ads Network displays ads campaign result
Facebook Ads Campaign Results
There is a misconception among advertisers that actually think they can get viable results with their advertisement campaign with a small fraction of their marketing budget. This is so far from the truth, for instance from the advert placement above we were able to raise the monthly revenue for the client by 30%, meaning they were able to gain back their marketing budget and earn some returns from the investment in digital marketing.
In effect what am trying to say is that if you want to execute a digital marketing budget it should be in proportion to your product profit, eg you want to sell some cars for $10,000 it will be silly to project a $100 marketing budget to sell the cars because you need more exposure to run through the campaign to be able to have your advert reach likable prospects that might find the vehicle interesting enough to afford it.