We are the experts in digital marketing for the health & wellbeing industry, specialising in personal and business transformation.
How Much Shall I Spend On Digital Marketing?
In simple terms, digital marketing can be defined as an online advertising and marketing strategy. Some popular digital marketing tools include the following:
Digital Marketing has taken over a prominent market share from traditional marketing in the field of business advertising. Hence, businesses have been forced to answer the important question -"how much should we allocate to digital marketing out of our total advertising budget?" This decision requires careful consideration of several factors. On average, companies look to spend 10-14 per cent of their total budget on marketing. Of course, the budget might vary from company to company and how long they have been in business. Still, 10- to 14 per cent would be a reasonable amount to allocate to marketing.
If a company does not create a comprehensive marketing budget based on proper data, then its money can go to waste without it getting the desired results. Therefore, it would be prudential to spend 45-50 per cent of the overall advertising budget on digital marketing taking the following factors into consideration:
1. Company Size:
A smaller budget would be more prudential for a company that has recently started out as compared to a well-established business with huge revenues. But, a company that wants to increase its market share should be looking at an expenditure of 7-15 per cent on digital marketing. On the other hand, a company that is well established and is only looking to retain its market position should aim at digital marketing expenditure of 5-7 per cent of its revenue.
2. Digital Marketing Strategy:
The complexity of your digital marketing strategy will depend on the amount you allocate to it. Greater time and effort is required by your digital marketing team if you choose to go for a more aggressive policy. An aggressive policy would surely achieve better results. Paid advertising will involve larger spending from your advertising budget.
3. Advertising Agency:
An experienced agency will charge more for its services because you are paying for their expertise. It is desirable to have an experienced agency if you aim to achieve your goals in a short time.
4. Marketing Strategy:
A company can achieve its marketing goals through various strategies. Some strategies require more time than others to reach the desired goal. For example, web redesign will help achieve goals faster than SEO, which cannot be hastened. Faster strategies will mean incurring an increased cost.
This brings us to the question of "where to invest the allocated budget."
1. Local Search:
Listing on relevant websites would help lay an excellent foundation for your business.
2. Managing Your Reputation:
This means to keep reviewing your marketing activities. Your reputation would surely increase manifold if a customer leaves a good review on a search engine. It will encourage prospective customers to give your business a chance.
3. Social Media:
Social Media cannot be overlooked. Customers these days are often likely to look out for you on your Facebook page. To create customers for your business, it is prudent to remain active on social media. This will help build a relationship with potential and existing customers.
4. Hiring Advertising Agencies:
Social media can get free word of mouth publicity but hiring a professional agency can also help boost business significantly.
5. Email Marketing:
Investing in email marketing is a great idea because it helps create very engaging online campaigns. If you feel you're not creative enough, you could simply pick up a ready-to-use template from a website for email marketing.
Therefore, how much you end up spending on digital marketing will depend on the approach you take. A minimalistic approach will provide results which are basic. In today's competitive world, a more aggressive approach is desirable. Remember, digital marketing is an investment and not a cost.