We would like to answer this question directly with an exact figure, but digital marketing does not work like that. It does not have to do so much with how much you have to spend, but with how you have to spend money to get results based on your margin, your ability to convert – that is, to get the actions you propose: sales, contacts … – and your cost of customer acquisition.
Or what is the same: how much you spend has to do, above all, with how much you are able to sell once you manage to bring consumers to your business.
To answer this question we are going to give you the keys so that you can know how much your company should invest in digital marketing actions, to be able to sell more and get all the results you need. But first, we are going to give you some tips that we consider to be the most important to consider before setting a digital marketing budget.
When you start your blog in India or in any other country and also in a business, investment decisions should not be made lightly, including those related to digital marketing. One of the main doubts of many companies is: how much should I invest in digital marketing? Solving this question is not easy, because it will depend on many things that we will explain in detail in this article.
Tips to Make Your Investment in Online Marketing Profitable
Marketing is based on testing strategies according to your company until you find the ones that make the most profit and you sell the most sales, but there are times when we do not have the right people around to carry them out, or we are simply not managing to reach our audience targets. Although digital marketing has many benefits, it can also be an expense and not an investment if these tips are not taken into account:
- Optimize your website before making any strategy, always start at the base of the house, not the roof.
- Plan before you act, always have a well-drawn action plan, and avoid improvisation to avoid making mistakes.
- Segment your audience well in your marketing actions.
- Measure, measure, and measure more. If you don’t measure, you can’t improve and get the most out of it.
- Do not be like Juan Palomo, “I cook it, and I eat it” if you see that it gets out of hand, let yourself be advised by professionals who help you manage your digital marketing.
- Communication between the company and the marketing agency is vital to maximize the benefits of a marketing campaign.
5 Keys to Setting Your Online Marketing Budget to Maximize Results
1. Study the Possibilities of Your Company
Knowing how much you should invest in the digital marketing of your company is not an easy task, since as you already know, it will depend on many elements such as the sector in which you operate or the type of business you have. For example, an industrial machinery company that works on B2B (Business to business) is not the same as an online store for ecological products.
The first step before setting your digital marketing budget is to take out your company’s accounts and see what is the maximum you could spend?
2. Define the Objectives You Want to Achieve
Once you are clear about your investment capacity, you must ask yourself: What is my objective? And no, it is not useful to respond only with “I want to sell or earn more money.” At this point it is vital to define real, measurable and feasible objectives. An example of a real goal: “For the next semester I want to increase my turnover by X Rs by selling X product.
3. Observe Your Competition
Observing closely what your competition is doing is vital to have good results in your marketing actions and to know how much effort and money you should be investing in order to compete with them.
Knowing their strengths and weaknesses you will be able to know the opportunities you have to compete with them and have a differentiated digital communication.
To closely observe the activity of your competition there are several interesting tools to consider:
- Semrush: this tool allows you to monitor the organic positions of your competitors, find relevant keywords, sees your competition’s online advertisements and much more.
- The Search: gives you a complete view of paid and organic positioning and your position compared to your competition.
- Google Alerts: this Google tool establishes an alert so that you always receive the latest news from your competition, every time they talk about it, it will reach your e-mail.
Other ways to closely follow your competition is to follow them on social networks and be aware of their communication by subscribing to their blogs or newsletters, to see what type of content they share and know all their news and launches.
4. It has a Professional Marketing Team with Experience in the Sector
Two heads are better than one, and we don’t even count 10. Having a marketing agency to help you is essential for your marketing actions to achieve the results you hope to have. One of the main advantages of hiring an external marketing agency is that with the cost of a marketing director salary.
5. Maintain Fluid Communication with Your External Marketing Agency
As we have already mentioned before, this is vital so that the marketing agency has all the information about your company. It is important to hold a meeting before setting the budget to evaluate all the possibilities that your business has and to know well the sector, the products, the target audience and all the objectives that your company has.
This communication must continue on a daily or weekly basis so that the marketing actions carried out achieve all the objectives.