Budget allocation is an important topic across numerous sectors of our world, and digital marketing is no exception. How can you go about allocating the proper resources within your digital marketing budget to ensure maximum return on investment (ROI)?
At BWP Communications, we’re proud to serve as a top marketing agency in Salt Lake City, offering a huge range of digital marketing and other advertising services. We regularly assist clients with important themes like determining and allocating marketing budgets, helping clients organize their entire resource allocation to maximize their returns and success. Here are some tips from our professionals on how to go about this process.
Defining the Marketing Budget
Naturally, the first major task here is defining your digital marketing budget in the first place. This will differ significantly from company to company and even from one budget period to the next, but there are a few general tips that can help you make this determination:
- Historical data: Look at how much you’ve spent in previous years on digital marketing, plus any trends that might be seen during different periods.
- Industry averages: Research what other companies in your industry tend to spend, particularly those of similar size or with similar goals and target markets. This will give you a general range to work within.
- Set ROI goals: Your marketing budget should align with your overall business goals, including desired ROI. Set specific targets and work backwards from them to determine a reasonable budget that could get you there.
- Consider market share: If you’re looking to gain or maintain a certain level of market share, this may also play into how much you need to allocate for digital marketing.
Detailed Marketing Goals
While the budget setting process involves setting general goals for ROI and targets within certain markets, it also involves considering specific objectives and tactics you’ll use to achieve them. Consider goals like:
- Increased website traffic: This is often the starting point for digital marketing campaigns, with specific targets for unique visitors or page views.
- Lead generation: If your business relies on leads from online sources, set a goal for how many you want to generate and what percentage of these should convert into customers.
- Social media engagement: Platforms like Facebook and Twitter can offer important engagement metrics that translate into brand awareness and loyalty.
- Sales or revenue: For e-commerce businesses or any others focused on direct sales, consider setting specific sales or revenue goals through digital marketing efforts.
Consider Diverse Approaches
Depending on the goals you’ve set and the budget available, there are a wide range of tactics you might consider for digital marketing. These include:
- Search engine optimization (SEO): Improving your website’s search rankings to drive more traffic.
- Social media advertising: Buying ads on platforms like Facebook or Twitter to reach new audiences.
- Pay-per-click (PPC) ads: Buying ad space with partners who will charge based on click-through rates.
- Content marketing: Creating engaging content that drives traffic and encourages conversions.
Outline Implementation Plan
Once you have your goals set, you’ll need to allocate resources accordingly. This will involve determining which tactics will be most effective for each goal, then allocating funds for them based on cost and likelihood of success. Popular digital marketing tactics include:
- Search engine optimization (SEO): Done properly, SEO can increase website traffic through higher search rankings.
- Pay-per-click (PPC) advertising: PPC ads are a popular way to gain more visibility online in short periods of time.
- Content marketing: Creating valuable content like blog posts or videos is a great way to engage potential customers and boost brand awareness.
Monitor Progress
One of the most important elements of budget allocation is ongoing monitoring and adjustments. Keep track of how your tactics are performing, and be ready to shift resources if certain strategies are not working as well as others.
For instance, if your PPC ads are generating a lot of clicks but few conversions, you may need to reallocate some of that budget towards a different tactic like content marketing. By constantly evaluating and adjusting your budget allocation, you can ensure maximum ROI and success within your digital marketing efforts.
Effective marketing budget allocation is crucial for any successful digital marketing campaign. By following these tips and working with experienced professionals like those at BWP Communications, you can make the most out of your resources and achieve your desired goals. Contact us today to learn more about our services and how we can help you reach new heights through strategic budget allocation in the world of digital marketing, whether you’re in SLC or any nearby area.
