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.
2. Define Your Marketing Goals
Setting clear marketing goals is crucial 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
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 whether 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.
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, whether 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.
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!