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How to create an effective Digital Marketing Budget for your business

Posted by Kevin Fouche on Jan 27, 2016
Kevin Fouche

If you haven’t already realised how important digital marketing is, now is the time to get on board. It is the wave of the future and will only continue to rise in popularity as time passes.

As popular as it is, there are definitely lots of ways you can spend your money on strategies you have put in place. But, it is also easy to get carried away at the same time. This is just one reason that creating an effective digital marketing budget is so critical.How to create an effective Digital Marketing Budget for your business

Why you need a Budget

In order to receive the most value for your money, it is best to set up a digital marketing budget. This is something that will help keep you on pace to being successful with your strategic goals. One of the best things about any type of budget is that it helps you set goals. With these goals, you are able to focus on what matters most and actually accomplish the things that will make a difference.

How to Create a Budget

There are several things you can do to develop a budget for your digital marketing strategy. Start by discovering which methods work best for your industry. This is something that can help you to save money by not placing your efforts into the wrong outlet.

Research shows that it is best to spend 80 percent of your budget on items you are certain will work with your marketing goals. The rest of your budget can be spent in exploratory measures. Following this system will help you make sure that the majority of the money you spend is designated to effective methods.

While you are allocating your budget, it is important not to focus only on one area at a time. Instead, spread out your funds so that several different areas can be covered at once. For example, if your budget is $100 for the month, you shouldn’t focus only on one Facebook ad. Instead, purchase a few smaller ads on multiple social media sites for the most value.

Along with this, make sure you aren’t focusing on digital marketing strategies that you have very little control over. Instead, choose items that you can control how much of your budget is allocated to it and who is targeted. This will help you to make sure you remain in control of your budget and aren’t forced to overspend to keep up with your advertising schedule.

Budget your Time

Along with allocating your money, it is important to spend some time budgeting your time to your digital marketing strategy as well. Remember, you will need to put effort and time into building your strategy, which will mean you are spending less time in other places of your business.

Make a dedicated effort to control the time you put into your digital marketing planning and implementation. This is also an area that can quickly get out of hand. But, by developing a schedule and a budget in regard to your time, you will have a better chance of spending it wisely.

In many instances, it is more cost-effective for companies to hire an employee or a company to focus on implementing their digital marketing strategy for them. This helps to give leaders and owners the time needed to focus on other areas of the business. However, if you decide to complete this process yourself, make sure you are setting time aside to fulfil your digital marketing needs properly.

Getting your budget right is the first step in creating an effective digital marketing campaign. With this in place, you are then free to focus on the areas that will create the most benefit for your company. If you are looking for more ways to get your budget set correctly, contact us today.

More reading: 

What is Inbound Marketing and how does it work?  
Customer Acquisition: How much does it cost to acquire a new customer?

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Topics: Inbound Marketing