A couple decades ago, you simply needed to take out an ad in Yellow Pages. Maybe send out a few brochures. That was your marketing budget.
Now, when marketing online, there’s dozens of channels and tactics you can use. How much do you budget for each?
Which don’t you use? How do you know if you’re overspending, underspending, or spending the right amount?
…And then Google changes how the game works! How do you account for that in your budget?
Those are hard judgments to make. You don’t have any easy answers.
Realistically, you have to understand your own business’s needs and budget accordingly. Here are some things you might think about as you do:
Most digital marketing tactics don’t have a quick return. Yes, we’re a digital marketing company. But, that’s the truth.
Social media, SEO, content marketing, website redesign…they typically take at least 6-12 months before you see any benefit. And often, longer than that to realize the full benefit.
PPC can get you qualified leads in your doors within a month. But it’s not as cost-efficient. So, it’s something you may want to hit aggressively at first, and then allocate less budget towards in the future.
Public companies spend anywhere from 5-15% of their total annual revenue to increase their growth. About 10% is the average. Public companies who spend less than 5% of their annual revenue experience slow growth, if any at all.
Further, the company who wrote that report found that even for mediocre marketing programs, companies got $10 in revenue for every $1 spent. So now you have guidelines on the gross amount to spend.
Get Response, one of the leading email marketing tools available, asked Gartner, a leading tech research firm, to survey SMBs and share the results. Here’s what they found:
Another online survey by Gartner (and again requested by Get Response), found high return-on-investment in online marketing, regardless of industry.
Online Marketing Simply Works…You Have to Decide Your Budget
Just like anything else, you get what you pay for. Online marketing offers high ROI. At the same time, you have to be willing to budget for it to make it happen.
Only you can decide exactly what your budget should be. And now, you have perspective and information so you can make the most sensible decision for your business.