Most businesses planning marketing through digital modes don’t realize they need for setting up early plans and defining the roadmap for action. This gets the pace and effect of execution unlikely as with time in most cases marketing situations get uncertain and tricky.
Before you even start building a plan for promoting business through different digital modes and online channels, the most crucial thing you need to do is define the functional scope and budgetary outline of digital marketing for your business.
Your primary focus here should be to know your market and define your audience goals. This is how you get a hold of a cohesive marketing strategy to help you with gaining a clear sense of direction and defining numbers well.
As you do this, you have to be sure of the investment budget without which your entire plan may go for a heave. Having the idea of how much it is going to cost you across the line you are going to get a fair idea of executing the marketing plan. And this is going to help you better track, control, and drive outturns to best complement and serve your agenda.
Further, as you move ahead with your marketing plan, you can scale your operations to expand your reach as per your evolved requirements.
So, as you plan to get started with your efforts around digital marketing, you should be looking into devising and allocating a budget that will go into driving the whole process and getting things executed and take them further to meet your digital marketing objectives.
So, How Do You Start This Exercise To Attain an Optimal Digital Marketing Budget??
First things first, you need to identify your needs and calibrate them into marketing efforts with clearly established actionable goals. Here, you need to then identify what all practicing resources are required in the process and how you are going to include them in your digital marketing program.
You need to know the different ways, modes, and practices that you need to adopt to achieve the underlying marketing objectives in your case. Here, you should aim to cover every perspective of digital communication, engagement, and promotional value assuring yourself of an all-inclusive exposure and reach claiming a far-reaching impact across the online spectrum of marketing.
What All Needs To Be Included In Your Plan To Attain an Optimal Digital Marketing Budget?
As per a study on user search behavior, 91% of users are involved in regular and frequent online searches. Google alone has received over 360 billion searches in April 2021 out of which 15% are the keywords and queries entered for the first time. The first 5 results on the first page of Google contribute to over two-thirds of total clicks. An important connected study finds that only 45% of pages have backlinks and these are the ones that get the most proportion of traffic. There’s a lot of opportunity and scope lying ahead of you here.
If you have serious and long-term online plans, you need to understand the importance of SEO to claim reach and visibility on online networks. If you want to keep going far with your game of organic ranking and carve a sustainable presence, you need to provide for and invest in Search Engine Optimization.
If you are a business operating in a particular geographical area serving the local population, you need to build your local prominence in search. As hyper-local business searches and geographical queries are on the rise, you may need to have your business optimized for local keyword rankings responding to native searches, which grew from 1 billion in 2007 to 4 billion in 2013, registering a 300% rise. Today, local searches account for as much as 46% of all Google searches. With advanced mobility and voice search technology growing at an incessant pace, users are more often searching for local businesses and entering ‘nearby’ queries before physically reaching out to the provider or making a purchase. Local SEO is going to gain you an optimum reaching-out edge to the target users in your area.
As per recent data, there are over 4.33 billion social media users currently on different media platforms and messaging networks. In 2019, every online user was spending 145 minutes per day on social media. If you do not have your brand presence on the major social platforms, you are missing out on a huge opportunity to connect with your prospects besides risking your digital brand value that is being probably readily serviced by most of your competitors.
So, when you are planning to build your online presence and reach out to active media users across the internet, you need to be on Facebook, Instagram, Pinterest, YouTube, Twitter, and other leading social networks. And this requires upbeat efforts in keeping your profile managed, word conveyed, and audience engaged continually making your brand served online effectively and incessantly.
As per a study from 2017, about 7 million businesses and advertising professionals invested $10 billion in total in PPC ads. Another report establishes that besides boosting direct sales revenue and conversions, Pay-per-click ads have been a major contributor in enhancing brand awareness and recognition value for businesses, which is measured to be at 80% of all online branding techniques.
PPC campaigns can get you to directly reach targeted users by applying selection filters and tagging specific keywords. This gets you privileged advertising spots on top of the results pages to get you premium visibility over the organic listing in your category. To get results from overall marketing efforts you need to focus on a practical combination of organic and paid efforts and align them with your market research and trend timelines. Here, you get to acquire the best results as you allocate a budgetary milestone and set conversion tracking metrics going with your performance and growth goals.
As you plan to spare your marketing budget and come up with a plan to bring your operations on the floor, you should do your part of competitor and market research.
Here, you need to first focus on defining your scope of marketing. Get your target numbers and growth indicators in place. Define a marketing objective that is practically achievable against a realistic timeline and conversion goal.
This should then follow a proper plan of events that are curated, validated, and appointed to deliver measurable results.
Here, laying out the initial practicing schedule for your digital marketing program can get you to achieve a better understanding of what’s going to work in your situation and how. You will be able to identify and establish the right amount and combination of efforts around SEO, local promotions, social media management, digital branding, and pay-per-click marketing going with a properly laid functional agenda and execution plan building a task framework. The practices and tasks related to all these functions can be comprehensively assigned with proper implementation slots and application approach to follow a coordinated structure and methodical plan defined by a project-specific budgetary goal and ROI plan.
The ever-trickiest question that most businesses face with a planning marketing budget is what proportion of their revenue they should invest towards the digital forefront. Experts suggest that if you are primarily into an online venture or have an e-commerce store or on-demand solution, you should recurringly invest 30% of your total revenue in promoting your business through digital modes of promotions.
This should scale further with an incremental investment growth value of 5-10% across performance timelines based on your augmentation and growth plan. If you are performing against high competition and have vast and aggressive acquisition plans, this number can be proliferated with an added trial budget and investment outlay.
If it is just an extension to your established physical setup and your plans are more around building an added digital brand extension and getting a parallel audience exposure, you may play around with a budget of 2-5%.
These are just the standards set to serve the ideal market and business conditions and it always needs your own decision based on your situation, developments, results, and turnarounds. You can set your customized phased-based budgetary goal or adopt a dynamic response-based investment mechanism or simply go with a static interval budget allocation plan as it may seem apt in your situation as per the results you get with your digital marketing efforts.
As you can identify all elements and methods of marketing you are going to implement and execute, you are halfway through with your job. Now, as you have the line of efforts defined and have a fair idea of what to do (and most importantly how much to do) in a close and relative coordination of planned efforts, you get a fair idea of outlining your budget.
If you know you have a long plan with promoting your product and there’s a lot of worth coming in by steadily moving ahead with your organic marketing plan, keep aside a dedicated budget for Search Engine Optimization and Local Search Promotions. This takes patience and you need to invest a small amount in setting a monthly budget for SEO to get results. Do that by keeping your tracking lens on and adjust your budget as you see some visible turnarounds or feel any requirement to change the intensity and frequency of search engine results.
If you think you have a product or service that needs to build its audience base by connecting and interacting with them on social media, you should have a plan to invest in social media management and the digital branding of your offerings. This should be calibrated across media channels and you should pick the social platforms where you find your audiences mostly. So, even if you are planning to do organic promotions and find your slots on SERP rankings, you should set out a maximum budget for profile management and promotions on social media. To get your product promoted aggressively you should also provide for options to promote your products to your target audiences through Facebook and YouTube Ads.
If you are in a high competition business or your average product ticket size is high, you should go for paid advertisements on Google and Microsoft Ads networks. This is going to open you up directly to users who are searching for your keywords and this will get you to immediately tap the opportunity to sell to the high-intent active prospects who have a high chance to convert. This will of course involve a higher budget and added cost, but this is where you can expect assured and immediate results for your investment.
Doing this, you should always create a service matrix and execution chart where you put weights and values on different digital marketing activities to position your events and prioritize your objectives. Once you do this, you can define your action plan bringing together an optimum combination of marketing activities, execution plan, action items, and performance metrics across all the digital marketing practices you would like to engage and follow.
Once this is done, assign them individual budget scores and put them into a collective combination representing a quantifiable value objectively. Further, combinedly measure, analyze, and validate these marketing tasks for results and responses across different stages over the course of application to optimize your marketing plans. This is how you can get to figure out an optimum digital marketing budget by trying the most lucrative combinations, assessing results, and reevaluating your marketing budget models across the line of execution. All this can collectively contribute to achieving an optimum digital marketing budget for your project.
If you think you are not able to do that by yourself (which is a common scenario with 90% of businesses), it is always wise to hire digital marketing services to help you with gaining a better perspective of budget allocation and investment followed by professional consulting support.