The digital marketing budget is an important activity to handle the marketing needs of the business organisation. Any business will need to allocate a certain budget for their business dealings. This budget will act as a primary entity to reach the customers. Without a marketing strategy, the business cannot succeed. For a business to grow, the organisation’s products must get into visibility of end-users.
Without proper reach, the products cannot meet the sales target, and hence it is necessary to spend money and effort on marketing.
Percentage of cost for Digital Marketing
Every business will have to make a budget plan for their investment into the business, purchasing raw materials, devising a budget to accommodate employee salaries and many more.
In addition to all these budget items, it is crucial to allocate money for marketing. There is a general myth that spending money on marketing will always be an expense, and it will never have a money-back option.
However, marketing will yield a good return on investment. It has the power to improve the organisation’s profit and revenue growth. Most companies would arrange for a budget of 10 – 15% of their total revenue on marketing.
If a company is allotting 30% of total income to unnecessary expenditures, then at least half of the percentage can be given to digital marketing. Digital marketing has a good dimensional reach among customers.
Digital marketing will help to advertise your business across the globe. For example, if you are planning to launch an organic product, particularly in the health and beauty segment, you would be surprised to see the customers coming in across the globe.
Once the business receives the purchase order across countries, it would become the responsibility of business units to retain such customers. The business unit should attract customers with its list of products and features.
Areas of Digital Marketing
- Social media platforms
- Omni Channels
- Search Marketing
- Video Marketing
- Advertising on retail Apps
Digital marketing can happen traditionally in the online world by sending out emails. Emails are still a powerful option to reach customers. These emails will be more beneficial during festival days and formal events. The emails will be helpful for advertising with a lower-cost investment.
Nowadays, many automation software tools are available to advertise the business. These tools would help to format the email and also can help in creating attractive templates. And the latest trend allows the customers to place orders on your ecommerce website directly through email! Customers can directly make the purchase and complete the process with the same click.
Today, social media platforms act as the main agent in advertising products to the end-users. The media platforms allow the business units to advertise in a predefined space on their website. These advertisements can be restricted to geographic location.
Also, every geographic location on the same social media platform can allow the ad to be displayed according to the specifications. Thus, social media platforms can provide the right information to the end-users.
The platforms could always act as a huge medium to advertise the business content. Every organisation will have to set a certain budget amount for marketing, and a big share of the amount should go to social media marketing to attract young users.
Search Marketing or SEO
It is important to invest money in SEO techniques. When a customer searches for some product, the SEO techniques will help the customer list your business website at the top of a search list.
To bring the web pages on top of search results, the business unit will have first to advertise its product with the search agencies. These search units can try to publish the product and the advertisements before even improvising the SEO.
As the customers start clicking on those business websites, the leads to the website would start to improve and, in turn, improve the website’s SEO.
With proper budgeting, you can also take out a portion of your fund for exercises like video marketing which is beneficial for SEO.
Video Marketing is the process of publishing video content to endorse a product or service. An example of this could be the loading of advertisements in the middle of video play on Youtube.
This model has been very effective because every internet user will have access to YouTube. Hence placing advertisements in the middle of YouTube videos. These YouTube videos will also allow the users to click on the advertisement links, go to their respective websites, and finish the purchase order. Video marketing can be enabled not just on YouTube videos but also on other platforms. With your digital marketing budget, you must try to allocate a dedicated part of your budget for video marketing.
Existing Customers Vs New customers
While making a budget plan, it is necessary to decide which type of customers will be taken up for focus as they are crucial to determining which way of marketing is needed for the current year.
The marketing budget can be decided for the entire year. Still, the budgeting plan should be subjected to on-demand changes at least every month. For instance, the video marketing budget must go high during times like lockdown and must go low during normal days.
The business units need not always spend time and money to retain existing customers. Because in the fast world, they get easily attracted to the offers and discounts from the new bees entering the market. It is risky to invest and focus on existing customers. Rather the organisations can focus more on new customers, trends, and growth targets. With digital marketing, it would be easy to attract new customers.
Focus points for the Digital Marketing budget
The marketing department will be allocated some amount every year. From the allocated cost, the department will have to decide how much will have to be spent on traditional marketing and digital marketing.
Nowadays, certain products or small businesses will not even have a physical location to sell their items in the digital world. Those businesses would fully focus on digital marketing than on other marketing options.
There are categories like email marketing, video marketing, and SEO for which there are different natures of expenditures involved. If a business is planned to get a profit of 30%, then investment into digital marketing will have to have at least 10 to 15% of the cost allocated.