Digital marketing helps brands get a firm footing in their respective niches by giving them alternative ways of communicate with clients effectively and efficiently. According to a recent poll, 66% of internet marketers anticipate more intense competition for customers in the next year.
As an online business owner, you need to robustly use the various digital marketing channels to retain existing customers and attract new ones. Some of the top digital marketing channels you can leverage include:
- Video Marketing
- Content Marketing
- Email Marketing
- Social Media Marketing
The cost of marketing on these platforms varies greatly, so make sure that you budget for each independently. Here are expert tips on how to budget for the four primary digital marketing channels.
- How to Budget for Video Marketing
YouTube is estimated to get more than 30 million visitors per day. 3000 hours of video content is uploaded on this platform every minute. Based on these facts, it’s recommendable to incorporating video content in your marketing effort.
Don’t limit yourself to YouTube only; distribute the videos across other social media platforms such as Facebook, Twitter, and Instagram to get as many views as possible.
The first thing that you should do when budgeting for video marketing is set goals for the campaign. The goal can be anything from getting 100 more subscribers to generating 20% more sales. With the goals in place, you will determine the amount of money you should allocate to this channel.
There are also video content creation tools that you can use to create stellar videos for your marketing campaigns. Compare the pricing and features to find that they are affordable and suitable for your business. But if you are starting, you can try out the free video editing software to hone your skills.
More importantly, determine the number of videos you will post on YouTube and other preferred platforms per week. In your quest to keep the audience engaged and interested in your brand, strike a balance between providing fresh video content and bombarding them with too many videos.
Most successful digital marketers post new videos at least three times per week. The frequency is dependent on the goals and your budget. Too many videos mean that you will spend more time and money on the creation processes.
- How to Budget for Content Marketing
Content marketing should be the pillar of your digital marketing campaigns. Without quality content, you won’t succeed in getting customers to visit your website and convert. On average, most businesses allocate 25 – 30% of their total marketing budget to content marketing. Companies whose total revenue is below $5 million per year invest 7-8% of their revenue in content.
It’s essential to look at the cost holistically to avoid plunging your business into financial turmoil. We recommend setting a small budget and leveraging free blogging platforms such as Medium.com to get the word out there about the products and services for small businesses that are just starting.
The rule of thumb is not to test the waters with both feet. Benchmark the results achieved in organic traffic and sales to know which type of content you should focus on more. Below is an overview of the cost of different forms of content.
- Blogging – Free to $2,000 per post
- Ebooks – Free to $4,500 + per book
- Slideshows – Free – $500 +
- Infographics, media assets and charts – Free – $5,000+
- Video – Free – $2,000+
- Promotion – Free – $500 +
Use the above figures as a blueprint when creating your content marketing budget. Be on the lookout for deals such as free guest posting opportunities to reduce your expenditure further.
- How to Budget for Email Marketing?
Millions of digital marketers prefer email marketing due to the high ROI it offers. For every dollar you spend on it, expect to get an ROI of $42 on average. Experts recommend setting aside 16% of the entire digital marketing budget for email marketing.
However, before launching the campaign, build an accurate mailing list to avoid sending emails to people interested in your brand. There are free, and premium email templates that you can use to create resounding email copy.
Choose between the one-off and re-usable templates based on the amount of money you can afford to spend. While at it, compare and contrast the different email marketing service providers to find one whose tools match your budget.
- How to Budget for Social Media Marketing
Social media platforms offer excellent opportunities for brands to market their products and services. Most of them don’t charge a penny to open a page. You will only be prompted to pay if you decide to run paid ads such as Facebook ads and sponsored posts on Instagram.
There are no set rules or guide on exactly how much you should spend on this digital marketing channel. However, the profits should be more than the amount spent on the campaigns. Here is an overview of the percentages different businesses allocate to social media marketing.
- B2B Services – 18.3% of the total revenue
- B2B Products – 14.7% of the total revenue
- B2C Services – 18.7% of the total revenue
- B2C Product: 21.8% of the total revenue
On average, the social media marketing budget for consumer services is 28.5% of the revenue, media and communication products/services is 25.6%, while banking and finance services/products stand at 24.5%.
Use the above statistics to decide the amount of funds that you should spend on the various platforms. Check how each platform performs to know if you should continue channelling money to it. For instance, if Facebook delivers more sales and organic traffic than Twitter, allocate more resources to it and check the Twitter campaign to identify the friction points or loopholes.
Creating a digital marketing budget will safeguard the profitability of your business and help it grow. Be sure to consult widely, be open to new ideas, and test each channel or strategy to know if it’s worth the amount of time and money you spend on it. Remember, cheap is expensive. You are better of paying $100 for a custom email template than using a generic template used by thousands of digital marketers. Good luck!