Every aspect of running a small business can be incredibly challenging, including creating a budget. Most small businesses are on a very tight budget, so you want to make sure that you delegate it in a way that doesn’t neglect any of your business needs. Depending on your digital marketing experience, it can be even harder to figure out how much to budget for this part of your business expenses.
Whether you need to create your first digital marketing budget or need to adjust your existing one, the following tips will make it much easier.
The Rule of Thumb by Percentage
Remember that every single company is different, and your digital marketing budget will depend on a long list of factors. That being said, there are some general rules. B2B companies typically spend about 2-5% of their revenue on marketing as a whole. This figure is about 5-10% for B2C companies.
But there are two things to remember when using these general guidelines. First, there are significant variations within the range, and you may not even fit in the range. As such, use the ranges as a general guideline and don’t feel like you have to stick to the figures. Second, those percentages are for all marketing, not just digital marketing.
So, that 2-10% of your revenue will also include any non-digital marketing you do. For example, do you have radio ads, ads at bus stations, print flyers, or in-store advertising? All of those also need to be accounted for.
List All of the Potential Digital Marketing Expenses
To start figuring out where you fall within the typical range for digital marketing budgets, make a list of all the expenses you have or will have. Be sure to include digital marketing strategies you don’t yet implement but plan on using in the future, such as local influencers. The following are some of the most important potential costs to consider:
- Website
- Social media advertising
- Social media management outsourcing
- Online advertising, including Google ads
- SEO and PPC
- Email marketing
- Video marketing
- Content marketing
- Local influencer marketing
- Brand development
- Training for anyone internal who will handle digital marketing
For each of these categories, remember to think about all of the associated costs. For example, your website cost is not just to design the website in the first place—there are also fees for things like hosting and maintenance.
Figuring out your digital marketing budget doesn’t have to be difficult. Looking for help? Contact a local business consultant today!
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Jan. 7th, 2023