It’s a new year and you need to budget for your digital marketing strategy. Unfortunately, you feel as though there isn’t enough to budget for. Guess what… Everyone feels that way. Every marketing manager or business owner feels as if they’re working with limited funds. Budgeting is one of the most prominent yet overlooked tasks in digital marketing. It’s not just about the large sum of money you have to spend by the end of the year. It’s about how much will go into which platform and strategy. In this article, we break it all down. These are simple factors to consider when allocating funds to different strategies and platforms.
Having a marketing strategy comes before budgeting. A marketing strategy defines which tools you intend to use to achieve a clearly defined goal, within a specified time frame. Your strategy also needs to establish goal metrics. Such an expansive strategy will enable you to measure whether the funds have achieved their intended purpose or not. If you do not have a marketing strategy yet, you can start by researching how to come up with one.
After creating your marketing strategy, you need to decide which channels/platforms to use in order to achieve your strategy. Here are a few things that affect the success of campaigns and billing on various platforms.
Keywords are significant to those who intend to advertise on search networks like Google. It’s always a battle for keywords when it comes to Google advertising. People bid for keywords and the highest bidder gets to be at the top of a Google page. If you pay more than your competitors, you get to appear at the top. Competition is often so stiff that people use their competitors’ business names as keywords in a bid to overshadow their online presence. When budgeting for your campaigns, consider the most important keywords in your niche and their popularity. Some fields are more competitive than others, while others have no competition. Fields such as real estate, web design, and digital marketing are extremely competitive and you might have to part with more money in order to achieve meaningful publicity. If you’re limited by a small budget and you work in a highly competitive field, it would be advisable to avoid using Google AdWords as a marketing tool, especially if you’re sure you can’t match other bidders’ heavy pockets. Competing with deeply pocketed bidders whose bids you can’t match is a waste of time since your advert will barely be seen by anyone.
Peak and Off-peak seasons
Each industry has a peak and an off-peak season. For some, peak season has just ended and for others, it has just begun. The festive season, for instance, is considered as a time to harvest for clothes or fashion stores, gift shops, food stores and general retailers. The first quarter and second quarters, on the other hand, are favorable to B2B businesses while the third quarter ushers in the wedding and events seasons.
In a nutshell, you have to understand your industry’s calendar before budgeting, because you need to spend more during the peak season. This is at a time when potential customers are actively seeking products and services. You should try to stand out as much as possible by increasing your visibility in a creative manner. During the peak season, try to spread your budget across multiple platforms and allocate more funds to tools that have been proven to convert with ease. Witty marketers spend 70% of their budgets during the peak season while the rest is allocated to the off-peak season. It’s all about maximizing on open opportunities.
Meet David, a marketing executive at X bank. He has 5 million to spend on marketing and advertising for the year. He is an old school guy and prefers to inject most of the funds in traditional media, but he has had of the powerful nature of digital marketing. He therefore, spares a million for paid advertising on various platforms. He has hired a budding freelance graphics designer, who is also his nephew to create a simple advert. He intends to rotate this advert on various digital platforms all year round. As for the accompanying content, he will piece together a few sentences explaining various packages and their prices.
What is David doing? He is wasting his time and the company’s money. Paid advertising relies heavily on quality content and businesses are going out of their way to capture consumers’ attention. Even small businesses budget for photo shoots and pay professional content creators to engage their followers. When you create campaigns that are not at par with today’s standards, consumers will automatically dismiss your brand. Bear in mind that most people are online looking for content. They’re not waiting for companies to tell them what to buy.
While budgeting for your campaigns think everything through and figure out what kind of message you want to communicate. Content creation is part of branding. 21st-century internet users have high standards and expectations. They want to be engaged rather than be informed about products and services. They also want to be entertained and challenged. Therefore, if you go into digital marketing, you have to go all in. Hire professional photographers and experienced content creators in order to elevate your brand’s image.
Conclusively, budgeting for digital marketing is highly dependent on the platform you intend to use. Various platforms have different billing systems and some are more affordable than others. It is however ill-advised to rely on one platform unless you’re working with an extremely constricted budget. Rotate your content and see what works for you and try as much as possible to invest in quality content.