The budget for digital marketing is primarily determined by the elements used in each channel. For example, while SEO and social media may be inexpensive, purchasing email lists or online advertising might be prohibitively expensive. It’s worth noting that while creating videos for marketing can be expensive, it doesn’t have to be. You may quickly cut video creation costs by investing in a program like InVideo, which allows you to edit and generate beautiful films even on its free plan.
To determine how much and where your spending will be, you must establish a step-by-step budget allocation method. Here’s one method for allocating your digital marketing money to the various stages. Begin by stating your goals and breaking them down into smaller sub-goals. This will assist you in determining the priorities of your digital marketing objectives. Quantify your sub-goals by considering your choices for accomplishing them, and then choose the marketing channels you wish to use.
Invest in the channels that are more likely to provide positive outcomes by examining which ones your audience is spending the most money on. Analyzing the target audience will already give you a good sense of where they spend their time and what they are interested in.
To allocate funds, follow the 70-20-10 rule:
– Allocate 70% of the budget to strategies that you are confident will work well.
– Invest another 20% of your money towards newer tactics that will help your company expand.
– Allocate the remaining 10% of cash to emerging technology and the testing of innovative concepts.
While 70-20-10 is a fairly effective technique of allocating finances, the percentages can be adjusted based on your priorities and strategy. Finally, assess your performance to re-allocate cash based on the returns provided by each digital marketing plan. It is critical to monitor your progress on a monthly or quarterly basis.
