Hi Everybody, My Name Is Firoz Ahmad I Am An International Online Marketing Consultant Rated Best Digital Marketing Consultant In Delhi And Awarded Best Digital Marketing Consultant In Mumbai, In This Article, I Am Going To Tell You How To Create A Digital Marketing Budget For Your Business Step By Step.
So There Are Basically Four Types Of Digital Marketing That Produce 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 2020 Facebook Is On An Upswing It’s Gonna Have 90% User Penetration By 2020 Instagram Is Gonna Have 46% Twitter 27% Pinterest 32% In Tumblr 14%
The First Step In 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 Follow Or Growth And Social Engagement, So That’s Comments And Participation There’s Content Downloads There’s 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 The Types Of Goals That They Have
- 46 Percent Of Companies Use Social Marketing To Improve Brand Awareness
- 31 Percent Of Companies Use It For Customer Acquisition.
- 29 Percent Use It To Introduce New Products Or Services
- And 20 Percent Use It To Improve Employee Engagement
The Second Thing that You Have To Do In Creating A Digital Marketing Budget Is You Have To Evaluate Previous Campaigns, You Have To Evaluate Previous Budgets.
- How Much You Spent?
- Where You Spend It?
- 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.
Number Three Is You Have To Do Your Research You Have To Analyze Your Competition.
- So Where’s Your Competition Putting Their Money?
- Where Are They Doing Their Marketing?
- You Have To Do Some Research Into Keywords, So What Keywords Have Performed For You What Keywords Do Others Use.
- Are There Any Keywords That Are Underutilized Or You Know You Can Check Out Bids For Phrases That You Haven’t Used Before.
- You Have To Do Some Research Into Social Community
- So 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 Social Bluebook 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.
Do You Have On Anyone On Staff Or In Your Group Who Can Produce Content For You?
And If You Don’t Who Can You Pay To Produce Content For Your Brand You Also Have To Research Your Email Audience.
So How Big Is Your List ? How Engaged Are The People On Your List? You Want To Pay To Grow That List Is That Going To Be Money Well Spent.
Number Four Is How Much Can You Spend On Advertising
There Is No One-Size-Fits-All Answer For This I Have One Client Who Has A Ten Million Dollar A Year Travel Company And They Advertise On Facebook And Spend Two Million Dollars A Year On Facebook Ads To Produce That Ten Million Dollars 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’s Also Things To Take Into Consideration In Terms Of Your Business Objectives.
- So Do You Have New Products To Launch?
- Do You Have New Services To Launch?
- Do You Have Old Products That You Need To Invigorate?
There Do You Need To Put Something On Sale Or On Promotion. You Also Have 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 Point To Two Percent Click-Through Rate Technology, On The Other Hand, Gets A Point Eight OR Four Percent Click-Through Rate.
So Depending On Your Industry, Depending On Your Category, Click-Through Rates And Cost Per Click Are Very Different.
Number Five Is You Have To 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
- Getting Email Marketing
- Paid Search
- Display Advertising
- Mobile Marketing
Online PR Things Like That And Then You Have To 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’ve 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 A Cross Way Too Many Channels And You 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.
Number Six Is You Want To Make Sure That You’re Tracking Your Success In Your Failures.
Using Google Analytics And Facebook Analytics And Email Platform Analytics Also Checking Social Engagements.
So Shares And Comments On Social You Have To Set A Calendar And Then You Have To Make Sure You’re Checking Those Analytics Religiously.
You Have To Make Sure That You Know If 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.
Now In Closing I Just Have To Say That Digital Marketing Planning Has A Lot Of Moving Parts And It’s A Lot More Complicated Than A Article Of This Length Can Cover.
But These Are Some Of The Major Buckets Of Activity And Every Business Is Different In Every Industry Is Different And The Market Also Never Stands Still So The Market Changes The Platforms Change Trends Change.
You Have To Make Sure That You Test And Explore And Then You’re Doing It In A Smart Way And Make Sure If Something Is Working Don’t Fix What Isn’t Broken.
So That’s It I Hope You Enjoyed This Article On How To Create A Digital Marketing Budget For Business.