How To Create a Digital Marketing Budget for Your Business

How To Create a Digital Marketing Budget for Your Business
Hey everyone welcome back here. Today I'm gonna share with you six steps to greatness or How To Create a Digital Marketing Budget. There are basically four types of digital marketing that produced the best results and they are email marketing, social media marketing, SEO optimization, and content marketing.

The first thing you have to do is you have to decide what social channels you want to invest in. Here are some statistics on social media user penetration by 2022. Facebook is on an upswing. It's going to have 90% user penetration by 2022. Instagram is going to have 46% Twitter, 27%, Pinterest 32% Tumblr 14%.

Creating a digital marketing budget is setting your goal.

There are basically two kinds of goals, their sales and there's awareness for awareness that tracks things like traffic and social follower growth, and social engagement. So that's comments and participation there are content downloads, and there are content shares.

 Sales, on the other hand, tracks things like first-time buyers and repeat sales and conversions, and upsells.  

So here are some statistics from Forbes on how companies use social marketing and the types of goals that they have.

  • 46% of companies use social marketing to improve brand awareness. 
  • 31% of companies use it for customer acquisition.
  •  29% use it to introduce new products or services.
  •  20% use it to improve employee engagement.

Evaluate Prior campaigns

The second thing you want to do in creating a digital marketing budget is you want to evaluate previous campaigns want to evaluate previous budgets, how much you spent, where you spend it, how successful they were, and then figure out  If there was any money that was really well spent, or in worst case money that was really wasted and had no impact.

 Do your research 

You want to analyze your competition. So where is your competition putting their money? Where are they doing their marketing? You want to do some research into keywords.

  • what keywords have performed for you? 
  • What keywords do others use? 
  • Are there any keywords that are underutilized 
  • Do you know you can check outbids? 
  • Word phrases that you haven't used before. You want to do some research into a social community
  • where is your audience showing up? 
  • Where is your competition showing up to try to get that audience?

Do some research into social influencers so you can look at the social blue book, which is a great site, and find out how much money people are charging. Influences are charging for them to sponsor you or to get reviews or to do partnerships.

 So do some research into content costs to have anyone on staff or in your group. Can produce content for you and if you don't, who can you pay to produce content for your brand. 

You also want to research your email audience. So how big is your list? How engaged are the people on your list do you want to pay to grow that list? Is that going to be money well spent?

How much can you spend on advertising

There is no one size fits all answer for this. I have one client who has a $10 million a year travel company and they advertise on Facebook and spend $2 million a year on Facebook ads to produce that $10 million in revenue.

There are all sorts of factors that go into helping you figure out how much money. You can spend one is your company's revenue. One is your customer churn. So what is the retention rate you have for customers and how much does it cost to get more?

There are also things to take into consideration in terms of your business objectives. So do you have new products to launch? You have new services to launch, do you have old products that you need to? Invigorate there you need to put something on sale on promotion. You also want to check out industry benchmarks. So what are other people paying for in your category?

Google Display ads, for instance, if you're in the education category, education generally gets a .22% click-through rate technology, on the other hand, gets a .884% click-through rate. So depending on your industry, depending on your category, click-through rates, and cost per click are very different.
Allocate your funds

So one way to do this is to make a list of all the different channels that you could possibly use. Things like content marketing, social media marketing, email marketing, paid search, display, advertising, mobile marketing, online PR, and things like that.

Then you decide which one of those Is going to have the biggest impact on your goals. You want to spend most on those channels and make sure that you don't spread your budget too thin and that you put yourself on too many channels because it's very difficult to support and more importantly, it's very difficult to track the success if you're on in across way too many channels.

Don't have the support staff to support really tracking all of the feedback from the response to those channels well and then you always want to hold a little money in reserve so you can react to wins. You can react to losses and you can double down on things that are working for you.
 Tracking your success 

Tracking your success in your failures, so using Google Analytics and Facebook Analytics, and email platform analytics also checking social engagements so share and comments on social you want to set a calendar and then you want to make sure you're checking those analytics religiously. You want to make sure that.

You know something is not working that you admit your failures and you cut your losses because there's nothing worse than throwing good money after bad.

So that's it. I hope you enjoyed this article on the six steps to creating Digital Marketing Budget and if you did, please hit the subscribe below so you can read my article when they come out.

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