By Clint Sanchez · Published · Updated · 4 min read
Quick answer
To maximize a digital marketing budget, map the sales funnel first, set goals each quarter, review which past channels worked, price content creation (HubSpot suggests about 46% of marketing budgets go to content), pick platforms your audience actually uses, then split spend with the 70-20-10 rule: 70% on proven tactics, 20% on new strategies, 10% on experiments. Add website management, paid search, design, and video costs before finalizing.
Key takeaways
- Every business has a different sales cycle, and the budget should cover marketing at each stage of it.
- Marketing goals set each quarter with the team give budget allocation a clear direction.
- According to HubSpot, businesses spend around 46% of their marketing budgets on content creation.
- Freelancers and in-house creatives carry different costs and timelines; compare both before committing.
- The 70-20-10 rule puts 70% on proven strategies, 20% on new ones, and 10% on experiments.
- Website management, paid search, social ads, graphic design, and video are separate line items that are easy to forget.
For a Baton Rouge or Denham Springs business, the 10% experimental slice is where local tests belong: a short Facebook push before a Livingston Parish festival, one landing page for a single city along I-12, or a trial of a new lead source before spring HVAC season. Small, dated tests like that tell you what deserves the 70% next year.
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You want to get the most bang for your buck as a business owner. With so many options, it can be overwhelming to determine how to allocate your resources for the best results. In this article, we’ll provide you with seven key considerations to maximize your digital marketing budget.
1. Understand Your Sales Funnel
Understanding your sales funnel is one of the first considerations when allocating your digital marketing budget. Every business has a different sales cycle, and it’s important to include digital marketing tools throughout the process to retain customers. This can include free materials such as videos and blogs. By understanding the sales funnel, you can determine where to allocate your budget to maximize ROI.
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2. Define Your Marketing Goals
Setting clear marketing goals is important for effective budget allocation. Consider what you want to achieve and what financial resources are required. Working with your team to define marketing goals each quarter will give you a clear picture of your direction. It’s important to remember that marketing goals can look different for every business, so take the time to identify your unique objectives.
3. Assess Your Previous Strategies
Assessing your previous marketing strategies is another critical consideration. Take the time to evaluate what worked in the past and how much capital was available. Which channels were most successful? By understanding what worked before, you can make informed decisions moving forward. Certain tactics that worked in the past can be utilized again to achieve better results.
4. Factor In Content Marketing Costs
Content marketing is essential for keeping customers engaged but comes with a cost. Hubspot suggests businesses spend around 46% of their marketing budgets on content creation.
You’ll also need to factor in the difference between hiring a full-time employee or paying a freelancer to create engaging content regularly. Consider the cost of paying freelancers and creatives to generate new content regularly and if hiring an in-house creative would be more cost-effective.
You’ll also need to consider how much freelancers charge for specific jobs and their delivery timeline.
Every business has a different sales cycle, and the budget should cover marketing at each stage of it.
5. Consider Different Platforms and Tools
With various communication channels available, choosing the ones that will work best for your product or service is important. Consider how each platform will function and how your target audience interacts with content. Not every platform or digital tool out there will work the same, and depending on the type of product or service you’re looking to advertise, it’s not to say that each platform will function the same way every time. You’ll also need to consider the target audience, if they use these platforms, and how they interact with the available content.
6. Allocate According To A Formula
Once you have a marketing strategy, allocate your budget using the 70-20-10 rule.
This rule states that 70% should be allocated to marketing strategies that work for your business and the marketing goals, 20% should be spent on creating new strategies and developing new marketing tactics that can help your business grow, and 10% should be used for experimental digital marketing to test out new strategies for the future.
Giving priority to digital marketing strategies that were successful in the past and allocating less to those that didn’t yield returns will help you maximize your budget.
7. Factor In Additional Expenses
Don’t forget additional expenses such as website management, paid search, social media ads, graphic design, and video creation, research experts in your area to determine the average costs for each. By factoring in these additional expenses, you’ll better understand the overall cost of your digital marketing campaign.
In conclusion, maximizing your digital marketing budget requires careful planning and consideration. By understanding your sales funnel, defining your marketing goals, assessing your previous strategies, factoring in content marketing costs, considering different platforms and tools, allocating according to a formula, and factoring in additional expenses, you can make the most of your budget and achieve your marketing objectives.
FAQs:
These are the questions clients ask most often once the seven considerations are on the table.
What is the 70-20-10 rule?
The 70-20-10 rule is a budget allocation guideline that suggests allocating 70% to marketing strategies that have worked in the past, 20% to developing new strategies, and 10% to experimental marketing.
How can I determine the cost of content marketing?
You’ll need to factor in the difference between hiring a full-time employee or paying a freelancer to create engaging content regularly. Consider the cost of paying freelancers and creatives to generate new content regularly and if hiring an in-house creative would be more cost-effective. You’ll also need to consider how much freelancers charge for specific jobs and their delivery timeline.
How do I choose the right communication channels for my business?
Consider how each platform will function and how your target audience interacts with content. Not every platform or digital tool out there will work the same, and depending on the type of product or service you’re looking to advertise, it’s not to say that each platform will function in the same way every time. You’ll also need to consider the target audience, if they use these sorts of platforms, and how they interact with the content made available to them.
If you still need to figure out how to maximize your digital marketing budget or simply want to save time and effort, BlakSheep Creative is here to help. Our team of experts can provide you with the guidance and support you need to achieve your marketing objectives. Don’t hesitate to contact us today for a consultation and take the first step towards optimizing your digital marketing strategy. Fill out the form below to get started today!
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About the author
Founder & Lead Developer · Denham Springs, LA
Clint has built and marketed websites for 26 years, since founding BlakSheep Creative in 2000. He is also a 29-year firefighter and a 23-year member of IAFF Local 557, which is where the bias toward plain answers over sales copy comes from.
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Common questions about digital marketing
Why does the sales funnel matter when setting a marketing budget?
Should I reuse marketing strategies that worked before?
Is it cheaper to hire a freelancer or an in-house content creator?
What extra expenses do businesses forget in a marketing budget?
How often should a marketing budget be reviewed?
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