Digital Marketing – as any marketing strategy – costs money. No ways around it! But this doesn’t needs to cause stress. If you set your budget correctly from the start, you’ll save yourself a lot of headaches along the way. Below are some things you need to consider when building a digital marketing budget:
- Resources: Who’s going to execute the marketing strategy? You? Someone in your department? An agency or outsourced company? You need to have this point clear before starting to estimate your marketing budget. Set a maximum hourly rate you’re willing to pay for this services (let’s say it’s A) and how many hours you’d like people to dedicate to this task (let’s call it B) then just multiply A x B and the result will be your weekly resource allocation budget.
- Campaigns: Are you going to conduct paid search campaigns? If so, you need to include this in your strategy. Start by understanding the average cost per click in your city, country and industry. This can be as low as $0,01 per click up to even $80 or $100. You need to be clear on this to allocate a budget that’s actually going to allow you to see results. Once you have it, just multiply the CPC per the amount of clicks you’re expecting on a weekly basis and add that to the amount you had on point one.
- Others: Do you need graphic design? Copywriters? Any other team member? These “extra” activities may or may not be covered by your social media or digital marketing manager. If they're not, you need to include them in budget. Same process as point one. Estimate a maximum hourly rate and the amount of dedication you need per week. After that, add that number to the ones you got on point one and two!
This is a very basic guideline to start your sample marketing budget. Of courese, there are a lot of other things to consider - e-mail marketing, landing pages, newsletters, etc… but follow the same logic and process and everything will come to life in a few seconds!
Are you ready? Then let’s start!