In business, you have to spend money to make money. When you’re starting out, you probably have a low budget and are unsure about how you should spend your money. One thing you should be spending your money on is marketing. You have to get the word out somehow.
But how much should you spend on marketing, particularly digital marketing?
In this post, we will dive deeper into this concept.
Digital Marketing Is Important!
Many people realize that in the current age, you must have an Internet presence if you want to get the word out. In the next few years, it’s estimated that around $120 billion will be put into digital marketing. It doesn’t matter who you are. Even if your business is in a one-horse town, having a digital presence can – and will –attract some people.
We should also emphasize that digital marketing is not a monolith. There are many types of digital marketing, as well as different technologies behind each.
Types of Digital Marketing
When marketing, you need to use different types of digital marketing to get the most out of it. Here are a few types. This should help you figure out where your budget is going to go.
- SEO (search engine optimization). This is when you try to get your company to the top of the search results when people try to look for keywords related to your business. SEO is ever changing, and many companies pour money into making sure their company is the top on Google and other search engines. Unlike years ago, when your website ranking is based mainly on keywords and backlinks, several factors affect your website performance—time spent on the page, bounce rate, and other factors influenced by visitor behaviors. With search engines focusing on user experience, you’ll need a UX consulting firm to help improve your page design, enhance user experience and significantly improve your SEO performance.
- Social media marketing. Having a page on Facebook, Instagram, Twitter, and other platforms can make people see your business. Some people pay money to have their business advertised to its users, while others try to make compelling posts that will get shared.
- Email marketing. If you want to retain your customers and want them to come back, having them sign up for an email subscription isn’t a bad idea. They can get updates, offers, new products, and other news related to your business.
- Influencer marketing. This is the new version of celebrity marketing. A company pays someone who has a big following on Instagram, YouTube, or other platforms to showcase their product. Their followers will hopefully want to try the product out because of this.
- Content marketing. These are unique blogs, videos, or pictures that can engage both your regular and your potential customers. Many companies pay big money to have a good content marketer.
- Viral Marketing. These are campaigns, videos, and other content designed to go viral and attract many viewers. Often, they are creative and not just limited to the business itself.
These are just a few examples of digital marketing. To many newcomers, this is overwhelming. Not a lot of people in startups have enough money to implement all forms of digital marketing, so one often has to look at their business and see which form of marketing would benefit their company the most. Or they experiment a little with each form of digital marketing and see if one sticks or not.
How Much To Spend?
With that said, how much should a small business spend on marketing? There is no correct answer for all situations. Every situation is going to be a little different, and depending on what your business is, you may need more or less digital marketing. A business in a small town that spreads by word of mouth may need less digital marketing than a business in a city.
The US Small Business Administration says that around 7-8 percent of your gross should go to marketing. We’re talking about marketing in general, which includes offline marketing such as billboards, mail, and so on. How much your budget should go to digital marketing itself may depend on where you are, but around 40-50% is a good ballpark.
With many people on social media, one should look at social media, viral, and content marketing for answers. These types of marketing intertwine. People share interesting content and viral videos all the time. It makes sense why someone would want to invest their money into this type of marketing compared to other types.
You Need to Plan
Having a budget is a good first start. You don’t want to spend over your budget, but you don’t want to underspend, either. You also need to figure out where your money should go. Spending it on whatever and seeing what sticks doesn’t work for the most part.
There are many ways one can plan. Some business owners just sit down and think about where their budget is going to go, and then they adjust and self-correct their budget over time as they see what works and what doesn’t. Other people may plan their budget with the help of a professional.
While hiring a professional marketing firm can cost more, they can help small businesses out. First, they get the weight of marketing off your back so you can focus on other aspects of your business. Second, they are professionals and know all the tips and tricks to get the most out of your digital marketing.
There are many companies out there to help with your marketing, and they can be centered around a certain business or an aspect of digital marketing. You need to find the business that works with your budget and knows how to stretch every dollar. You may want to find a business local to you as well. For example, SEO Brisbane can help you if you’re in the Brisbane area.
In summary, you should send a small chunk of your budget on marketing, no matter how successful your business is, but don’t spend too much. Experiment with different budgets and find the price that works best for you. Don’t be afraid to contact a pro, either. As a small business, every marketing decision you make can determine your company’s fate. Don’t let it fail.
About the Author
Emily Bartels is a Content Writer and Developer at Constant Clicks, which helps businesses grow using digital marketing practices. She has been in this industry for 5+ years and specializes in writing educative content on SEO, Social Media, businesses. She loves to read trending news to keep her updated!