Breaking down the world of digital marketing into tangible figures has never been an easy task. We strive to make revenue increase at a steady rate whilst acquiring new leads or generating sales. There comes a question attached to the entire world of digital marketing though. How much should you be spending on it?
It’s possibly one of the things that most companies struggle to associate a cost with because most of the time they struggle to see the potential returns. Here are a few pointers on getting the most out of your budget.
Understand that data can drive digital
The days of circulatory newsletters are a thing of the past. In this new world of data, everything can be tracked. So when you ask the question of how much you should be spending, think about it like this.
If you can track the return on investment for each and every activity then would you feel better investing more money?
Thanks to data there is this awesome world of trackability that can really help you to understand how a budget is performing, but the interesting thing is you can scale your budget so long as it shows promise and aligns well with your business.
Digital can scale beyond belief
The rule of digital is a little different to the conventional formats of advertising. Almost every activity can be scaled, meaning that you can always expand until every little facet of your business is visible.
Understanding that a budget can decrease or increase based on the returns is an important thing to understand when talking with an agency or pushing forwards with an in-house marketing team.
Try new things!
Another problem that is common is a desire to fixate on particular channels when it comes to marketing. Going back to that point about data, everything can be tracked.
Don’t be afraid to jump ship when things aren’t going to plan. You can reduce wasting expenditure if a particular avenue isn’t leading to a positive ROI.
If social media isn’t working for you, don’t continue to invest your marketing budget into it. Keep trying to find things that work well for your business.
Don’t attempt to conquer everything at once
The final pitfall for most small businesses is their inability to break down their marketing efforts based on the device that people are using. In reality, you should be focusing on mobile marketing and desktop marketing in different ways.
A huge mistake for most businesses is putting their eggs all in one basket when they should be diversifying and finding what actually works for their business, whether that be a mobile app, a flashy new website, or a slick PPC campaign.
So how much should you spend?
A quick article sharing some of the reasons why I love digital marketing, but after reading this article I’m hoping you’ll understand that no budget is the right budget. The only thing that you can do is to test and ever evolve your digital marketing strategy so long as the return is in your favor.
And don’t forget that in the world of digital everything can change in a heartbeat. Don’t be afraid to be proactive and flexible with your budget if you think that there is money to be made.
One of the best ways to plan your marketing budget is to create a set amount that is something that you are willing to lose, whether that be £200, or £500. All forms of marketing are a gamble until you find something that works, even with a lot of expertise in creating marketing campaigns that are formidable.
Measuring success is a relatively easy task too. If you work out an acceptable price you would be willing to pay for a lead or sale this can be put against all marketing expenditure to work out the ROAS.
Digital is really cool right?
Jamie Fuller is a digital marketing executive at AppInstitute. He spends his days building links, creating content, and drinking far too much coffee at one of the world’s leading DIY App Builders (over 70,000 apps built).
AppInstitute regularly provides leading publications with app analytics, business data, case studies, white papers and statistics for established publishers across the world. They were named in the top 50 creative companies in England by Creative England.
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