Best practices for Digital marketing budgeting – From Identifying, Analyzing to Evaluating
Digital marketing is probably the greatest marketing tool today leaving behind traditional forms of marketing like advertisements, tele-calling, fliers, etc. Most companies today are dependent on various digital marketing methods to improve their reach and eventually increase sales. It has been observed that almost 95% of the organizations have increased their budget for digital marketing in the last few years. The influence and impact of various digital marketing methods like email marketing, SEO, social media marketing, etc are only going to grow in the coming years. Therefore, it is important for organizations now to plan an effective digital marketing budget to get the best results.
- Identify your objectives and set a goal:
The first step towards devising a plan for the digital marketing budget is to identify the objectives and set a goal. It is very important to be clear about the goals for the coming year and allocate the budget accordingly. There should be a concrete plan in place so that all the resources can be used well and no funds go to waste. Different companies have different goals that require different approaches. So before beginning planning, set the goals you want to achieve in the upcoming year and allocate the funds accordingly.
- Analyzing and auditing past results:
Looking at past results helps a lot in strategizing and budgeting for the upcoming year. Looking at the methods you had used last year and the results obtained can give a better idea about the things you should do this year. Auditing your past results allows you to see the channels and tactics that performed well in the past. Analyzing past results help in identifying the best performing channels and the channels that weren’t able to deliver results. It can help you see the ROI for each tactic used in the past and decide whether they were fruitful enough or not. By doing all this, you can plan the tactics and strategies for this term and set the budget accordingly.
- Evaluating the various options:
Now there are various digital marketing tools with varying levels of impact. It needs to be seen and assessed which option yields the best results and budgeting should be done accordingly. Recent studies and trends have shown that most companies are relying heavily on search engine optimization and content marketing to spread their business. There are several digital marketing strategies that can be used today like SEO, Video marketing, social media marketing, email marketing, business blogging, influencer marketing, personalized marketing, etc. So whenever you are evaluating your options while budget allocation, keep in mind the marketing goals and business objectives you have set and the past results you have received from different tactics. A proper evaluation leads to a good digital marketing plan without going overboard on the budget.
- Keeping in mind the future:
Just because some techniques have worked great for your business in the past doesn’t mean it will continue to do so in the future as well. It is always important to explore new opportunities and keep aside some of the budgets for newer avenues. So always strategize your digital marketing plan keeping some space and money available for new ideas and methods just in case the ones already in use somehow fail. Experimenting is very important when it comes to marketing so setting aside some money always makes a lot more sense and yields better results.
- Keep in mind the marketing software:
Just choosing the methods and content won’t suffice. Marketing today is almost impossible without the right tools and software. Different tactics require different software and this is a very important point that should be kept in mind while allocating your digital marketing budget. Some of the important tools and software that you may need to invest in include project management and collaboration tools, email marketing tools, social media marketing tools, outreach tools, personalized marketing software, content creation tools and so on. With the right tools and software, a great deal can be achieved so be sure to keep a sufficient amount of the budget available for them.
- Content creation:
Good content is a key to improve the online presence and reach of the business. The type of content varies from business to business according to their needs and goals. So it is important to keep a part of the budget aside to create and upgrade the content regularly to get the best results. The budgeting would need to account for editing equipment, writers, designers, etc and needs to be planned as well.
- Monitoring the results:
With the help of various analytics software, you can monitor the results of your digital marketing methods or tactics and make changes if necessary. This is also something that needs to kept in mind while allocating a budget for your digital marketing needs.
- Choosing the platforms:
Choosing the right platforms for the marketing of your business is important. Different kinds of products and services receive different kinds of responses depending on the platform and the type of consumers using them. Hence the budget should be planned to give priority to the platforms that bring in more business followed by the rest. Research and analysis need to be by constantly monitoring the results to get the statistics about which platform is helping the business more.
Planning the digital marketing budget can be a lot of work but doing it right can give you great results and take your business to higher levels. These are just some of the things that need to be done while allocating a digital marketing budget. Following the tips mentioned here and studying industry trends and patterns can help a lot with the digital marketing budget allocation and planning.
Keep in mind the goals you want to achieve and assess the best methods of doing so and plan the budget accordingly.
Spending according to a good plan will do wonders for your business.
Nimesh is the founder and CEO of WebCaliper, a full-service digital agency. Being a digital business enthusiast, He focuses on providing the advice and solutions that empower people to successfully grow their businesses through TECHNOLOGY & DIGITAL MARKETING.