“Creativity is intelligence having fun.” – Albert Einstein
Like a fish out of water is an idiom that describes how you might feel as a business owner when it concerns digital marketing strategies and ideas. The colossal evolution of digital marketing requires companies to allocate a larger percentage of their budget to digital marketing if they want their business’ to grow and to promote their brand. It raises important questions. Typing in Web Design Auckland is a start for most companies but how much should you be forking out on digital marketing in 2017? Is there a yardstick by which you can measure your business against your competitors? How do you keep abreast with the various strategies and ideas in the marketing industry? Essentially, it boils down to effective planning and budget.
Here are a few pointers to consider:
First and foremost, establish whether you know exactly what your budget is for the year. All too often, companies have no idea and are expecting their marketing agencies to come up with an answer.
At present maths is the driver behind modern marketing. It helps clients to measure marketing performance and how much they spend:
Start-up and new businesses: Startups need to jack up before allocating money to marketing. New companies; those who are operating for one to five years, it is recommended that you use 12 to 20 percent of your total revenue or estimated revenue on marketing.
Established businesses: Those firms that have been operating for more than five years, and have a portion of the market as well as brand equity, we recommend allocating 6 to 12 percent of their total revenue or estimated revenue.
Although it may seem to be a large percentage, do bear in mind that new and emerging brands attract new market share and establish brand recognition with a clientele that has no idea whatsoever, who they are. Hence, the high cost. As soon as the brand is determined and a part of the market is brand-conscious, that number decreases notably.
What is it? You have to develop your brand to generate income, but have no money to assist you in doing so. Can you identify with it? It is known as chicken and egg marketing. Rest assured, that to develop a brand you have to crack lots and lots of eggs. It is, therefore, imperative that established brands and startups alike are ably funded. In all likelihood, it might take more time and money than you initially expected. If you don’t have extra funds in your marketing kitty, ensure that you spend carefully and is fixed to particular outcomes. It is counterproductive to spend all your dollars on a project done incorrectly, and then having to redo it again. Nail it down, the first time.
What exactly is ‘fear of missing out marketing?’ It is a marketing phenomenon, whereby, you rely on hype and intensively promote your product/service to drive sales and engagement, namely;
The cost and marketing techniques will vary considerably, depending on the service or product you offer. However, each of the above will take a sizeable chunk out of your budget.
Firstly, take a look at past digital marketing endeavours you may have made. If it were successful then, it would be worth your while to invest in again. Secondly, look at current digital marketing strategies used by many businesses, such as Search Engine Optimisation (SEO), social media and email marketing, as these look to be the most effective areas. Here are some of the investment aspects incorporated into their digital marketing budget.
E-mail – Generating leads can be utilised to produce a database of prospects you can contact via e-mail. E-mail marketing prevails, as it is still one of the most efficient ways of turning prospects into clients.
It is pretty obvious that what remains on a budget is dependent on what is essential for the business. With the ever changing trends and fluidity of data obtained from a study, what is applicable today might be out of date tomorrow.
Having said, that; here is a breakdown of the digital marketing budget of most businesses:
The remaining 63% for the groundwork, which might comprise of appointing a manager, an agency, software, research, digital marketing, in-house training, etc.
Engaging your audience is pivotal in ensuring success in digital marketing.
Do your homework, get to know your targeted audience, your competitors and keep up to speed with the digital marketing world.
Ensure that you follow the steps to establishing your brand, in a quantifiable, strategic manner, so that you get value for your money.
Evaluate what was successful in the past and what was not. Adjust where necessary.
Do you want to get the most from your digital marketing budget? Contact us at Envision Creative