Arooj Ishtiaq | Mar 25, 2022 | 0
How to Allocate Budget for Digital Marketing
Review Your Company’s Marketing Goals prior to budget allocation
Prior to planning 2022 marketing budget, make sure your company is aligned on: What are your organization’s top priorities for the upcoming year?, and What marketing initiatives should be supported this year and what are your main objectives for the year??
Having goals in place will allow you to prioritize the tactics that you should focus on the most.
For Instance, if you want to grow your business website and generate more business from it, then you have to invest more on producing high-quality content, leveraging conversion optimization to boost conversions on your website. Alongside, you can invest in better search engine optimization to boost targeted traffic and any other lead generation tactics that will drive targeted traffic.
Your goal of marketing can be to increase sales or grow brand awareness.
To increase sales
Increase website traffic
Improve conversion rate
Retarget lost visitors
Create a sales funnel
To increase brand awareness
Grow social media followers
Engage more customers
Get more content shares
Increase ad impressions
Review Last Year’s or Quarter’s Results | Analyze the past
After knowing what your goals for the upcoming year are, look at your past results and see which channels and tactics performed better in the past, as well as what digital marketing strategy hasn’t worked.Identify channels that drove the most traffic? Which type of advertisements generated the most leads? This will help you make a 2022 digital marketing strategy and budget.
For example, your previous year SEO strategy might not have worked as you planned. Still SEO is important for digital marketing. So instead of not investing your budget in SEO, you should find reasons why it didn’t work and what you can do to improve your results next year.
You can divide your marketing channels into five groups by relevancy.
Search Engine Optimization
If you want to achieve long term free traffic, SEO may take a while to work, but once you rank on Search Engine, you will get “free traffic” daily.
Pay-per-click (PPC) advertising
Pay-per-click campaigns are a good option for driving traffic to your website quickly. A PPC campaign can be set up on one or more ad networks, allowing you to place ads across the globe in minutes. This will require an upfront budget. However, if well-designed and optimized, they can yield impressive results.
Do not miss out on getting new leads and customers with this targeted and cost-effective strategy.
Email marketing makes money. By Spending $1 on email marketing, you can expect an average return of $42. That’s the highest return you can expect than any other form of marketing — digital or traditional.
Even though there are better ways to acquire customers, it’s obvious that email is yet one of the most popular methods of communication.
Social Media Marketing
A well thought social media strategy can earn you much more than you have invested in it. In social A well thought social media strategy can earn you much more than you have invested in it. In social media marketing, your time and expertise are more important than the budget you invested. Many companies provide social media management services, it depends on you to outsource your social media marketing or do it yourself.
According to the CMO Survey, Social media spend on marketing has increased from 10.6% to 23.5% in five years.
Budget allocations to social media marketing have increased over time, as well. Advertising on social media channels was expected to grow at an annual rate of 17% from 2016 to 2021.
The average ad budget for digital media in general has been rising.
The best way to attract organic traffic is content marketing. .But you have to keep your content up to date. Therefore,, you’ll have to invest in content production and keeping up to date.
According to HubSpot, companies spend 46% of their marketing budgets on content creation costs. Since content is typically put online for little or no charge, this cost includes freelance budgets and salaries.
A survey by CMI and MarketingProfs found that 28% of medium-sized company marketers and large-company marketers said they had moved paid advertising budgets to content marketing over the past years.
Previously, the 80/20 rule was considered perfect, for which you’d focus 80% of your budget on promoting content and only 20% on content creation.
Forbes recommend to design an approach according to specific marketing plan and industry niche. It may be more effective to use 60/40 or 50/50 rather than 80/20.
Many freelance writers charge anywhere from 10 cents to a dollar per word, and 60% of expert writers charge more than $1 per word. On average, a team of freelancers producing five 1,000-word posts per week would cost anywhere from $500 to $5,000 per week, or $2,000 to $20,000 per month. In-house, you will pay on average $54,000 for a content marketing specialist.
Factor in Salaries, Agency Costs, and Production Costs
The term “marketing budget” is often confused with “advertising budget.” Due to this short-sightedness, companies miss out on what should be a major component of your marketing budget, such as software fees, salaries, market research costs, website costs, agency fees, payroll, and freelancing fees, among many others.
As of 2022, a well-designed, reliable website that generates new business will be a necessity.
According to WebFX, the average price for building a website, including launching and designing it, is between $12k and $150k. In addition to the costs of website design and development, technical requirements can include UX/UI development and testing, and support and maintenance..
According to WordStream, Online Google ads cost an average of $40 million-$50 million yearly for companies that use Google Ads. Moreover, WordStream reports that Google Ads’ average cost per click on search networks is between $1 and $2. To determine a monthly budget for this expense, you can use your ad clickthrough rates to calculate the number of website visitors or contacts you wish to receive.
According to WebFx, In 2022, the average cost of social media advertising is $15 to $200 per day, $450 to $6000 per month, with monthly spends ranging from $200 to $50,000. According to Hootsuite, LinkedIn ads are used by 80% of B2B content marketers.
Marketing Automation, CRM, and CMS Software Costs
Without tools and software, marketing is almost impossible. Each time you plan a budget, you should look into all of the tools you will need for a variety of marketing tactics. The following are the most important marketing tools and softwares you should consider investing in.
Marketing/management software for social media
Collaboration and project management software
Email marketing software
Marketing automation software
Tools for content creation: video creators, graphic design software, etc.
Graphic Design Costs
Graphics are essential to helping a brand stand out, develop, and grow. This is especially true when User experience and website development are also combined with design. However, The cost of good designs is high.
According to Glassdoor, in-house graphic designers typically cost $32,947 to $81,672, and senior-level designers will require much more salaries. .
Consider the cost of software for an in-house design team, such as Adobe Creative Cloud and Canva Pro.
A freelance artist will cost you $15 to $30 an hour, or you can work with a creative agency.
As your company grows, high-quality video production is essential when building a presence on YouTube, Facebook, or Instagram. Your brand’s reputation is at risk if you settle for anything less
On average, video marketers at companies cost $53,000, and some are paid as much as $145,000. Furthermore, you need to budget for production materials like mics, cameras, backdrops, and lighting, and post-production editing software like Premiere and Final Cut Pro.
Your marketing budget is not set full and final. If you would like to alter the allocation of various activities or your overall budget, you can do so,depending on the response you receive.
But, that would be possible only if you’re keeping an eye on the results. Monitor your performance continuously and regularly review your associates’ performance in a monthly or quarterly meeting. Remember, Measurable results lead to action!