How Businesses Should Allocate their Digital Marketing Budget

The main reason why digital marketing is taking over the traditional marketing channels is that the internet enables businesses to interact with targeted audiences in real time. Today, people have access to the internet and they have grown accustomed to participating and interacting with various brands and businesses. So, businesses with the assistance of a digital marketing service Long Island must implement digital marketing strategies to be an active part of the exceptionally pervasive and equally lucrative online market place. 

According to a 2018 survey, organizations have reported that their returns have risen above 30% by marketing digitally. In addition to this, as many as 80% of promoters have shared that traditional promotions alone do not suffice when it comes to rapid business growth. This shows that businesses and brands are now concentrating more on digital marketing and spending hugely on it. 

As per  20/20 Vision: A Marketing Leader’s View of Digital’s Future report, 95% of organizations have increased their digital marketing budget in recent years, and 9 in 10 marketers expect their budget to continue to grow by 2020. The digital marketing budget is expected to rise to 45% in 2020 compared to 42% in 2019, with the biggest share of 25 percent for social media and video marketing. 

• Find gross revenue: Gross revenue is the revenue before any expenses or allowances or deductions. If your business is new or the market has changed, estimated revenues can be used. 

• Find out your ideal marketing budget: If your business is younger than five years old then your budget should be in the 12 percent to 20 percent range. Spending a huge sum of money helps to build brand recognition. Older companies should set aside 6 to 12 percent of their budget unless establishing a new brand.

 

Once you have your budget ready, the next step is to allocate your budget to various tactics. It is better to spend a bulk of your budget to any tactics that have proven successful in the past. Each business is different and recommendations will vary depending on your industry and niche, your business goals and your actual budget. You can also begin with 5 to 10 most successful marketing strategies of 2019 that have improved leads and sales.  The following are some of the areas where you should spend your digital marketing budget.

• Email

• Branding

• Public relations

• Events

• Print ads

• SEO

• Social media 

• Training

• Website

The quality of your marketing data helps to find out how much value you can extract from this exercise.  It is best to spend money on those strategies that ensure the highest marketing ROI. 

Marketing requires help from software too. You need tools for a variety of marketing tactics and it’s something that you should look into in great detail, every time you plan a new budget or strategy. Similarly, it is important to consider trying out new marketing strategies too. For example, in 2020 you can try the following strategies:

• Video marketing: If you have not considered video in your marketing strategies then it is time to start doing so. Use video on your landing pages, on social media, on your blog or even build a YouTube channel.

• Personalized marketing: Create personalized content, and install personalization software on your website to show personalized content automatically. You can set up automation to deliver personalized emails to prospective buyers at the right time. 

• Around 90 percent of customers depend on influencers for making purchase decisions. So, allocating money for influencer fee is essential. 

• Convert website visitors to leads by making your website more interactive. You can include live chats, quizzes and games.

• Create streaming or live video for a modest cost. Check your community resources for companies that can handle video for you.

• Provide value by including timely articles and blogs, tools, help desks, links to valuable resources on websites and apps.

• Focus on marketing on social media platforms like Instagram, Twitter, Facebook, YouTube etc. as you can get more leads from it.

• Make sure to focus on content marketing also and allocate sufficient budget to pay for high-quality, authoritative, and timely articles employing SEO features to drive an organic presence in search results.

The above-mentioned trends will help you allocate your marketing budget efficiently. Digital Marketing practices like importance of SEO in digital marketing, Paid Advertising, Search Engine Marketing (SEM), Content Marketing, e-Commerce SEO, Automation Marketing, Social Media Marketing, etc are regular practices of B2B and B2C organizations. With the assistance of a digital marketing service Long Island, businesses can implement strategic digital marketing plans at affordable rates.  

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