Determine the ideal online marketing budget for your business:

By Shan Balasuriya Posted Date: 2016-07-11

How much should you spend on online marketing?

So you have an amazing new business website but you have no clue how to get it in front of your target audience and increase website traffic.  This is where digital marketing (online marketing) comes into play. For any business that has a presence online, digital marketing is what allows you to promote your business on the internet and improve brand recognition and awareness. This can ultimately lead to improved conversions and sales.

A common question we tend to hear is “How much should I spend on marketing?”- unfortunately there is no way to define a fixed amount since there is no ‘one-size-fits-all’ budget or strategy for online marketing because every business is unique. However if you carefully plan exactly what you want to do with online marketing and promoting your business, this can help you determine an idea of what sort of marketing budget to set. Below are some tips to help gauge your marketing budget:

  1. Focus your budget on your audience: It is important to understand exactly where your target audience is. This means know where they hangout online (social media, forums, news websites, various other websites) as well as knowing more about the demographic you hope to target (such as age group, location, interests). This information can help you streamline your marketing so it impacts your specific target audience.

  2. Maintain consistency and track goals: This means allocating a fixed amount for different avenues of online marketing then tracking the success or failure of these campaigns using various analytics. Generally a monthly budget of $750 to $1500 is a good place to start for small businesses.

  3. What to allocate your budget for: The marketing budget you decide on must then be allocated to the different online marketing options available to you. This will generally depend on your business goals and where you target audience is (which forms of media they engage with online). Some of the things your marketing budget can be allocated for include:

    • SEO (Search Engine Optmization) – very effective over time as your website will start appearing amongst the top search results for target keywords.
    • Email Marketing – Can be highly effective if the content is well thought out and you have an established database that is carefully filtered (database contacts must be relevant to marketing material being sent)
    • Social Media Marketing – another highly effective marketing strategy if you target audience tends to use social media. Generally good to use visually appealing content also provides the possibility of going viral and creating a surge in interest. Relatively low cost, but careful design of posts and maintenance is required (as you can interact and have conversations directly with customers)
    • Pay-per-click Advertising (PPC) – This is especially a great way to generate initial traffic to your website during the launching stages as you pay to get your website to appear amongst the top search results for a certain target keyword. PPC can be costly if not planned carefully, target keywords must be well thought out and regular updates done based on the analytics.

  4. The Cost per Month: Expect to pay a little more for the first month or two because the digital marketing agency is performing initial set-up tasks. But from this point on you should have a consistent fixed monthly spend

If you need help deciding on your marketing budget or creating an online marketing strategy for your business contact the team at Web Choice Online today!