These are the reasons why a good budget for digital ads is an excellent leverage. Such as. allowing companies to reach more target audiences.
Digital marketing has been on the rise over the past few years, and with good reason. Aside from allowing companies to reach more target audiences, it also allows higher engagement, conversions, and overall success. These are the reasons why a good budget for digital ads is an excellent leverage.
However, the challenge of properly allocating your budget is always present. So in this article, we’ll help you understand why a budget matters and what to consider before setting your budget. We will also tackle the budget should you start with and how to apply it before implementing digital ads.
Why is a budget for digital ads important?
Having a budget is essential for any successful digital marketing campaign. Without one, it’s impossible to know how much you’ll need to reach your desired audience and achieve your desired results.
A budget allows you to plan out where to spend your funds and rein them in when necessary. It also forces you to make decisions and prioritize activities that align with your goals and objectives. With this, you can always keep track of your campaigns.
A well-thought-out budget gives you clarity and direction in promoting your brand online. This is especially when competing against other businesses’ campaigns.
What should you include in your budget for digital ads?
When planning your digital marketing budget, consider what activities you’re going to focus on.
- Are you advertising on social media?
- Creating content and optimizing it for SEO?
- Developing Email campaigns?
It is also important to determine which platforms you plan on utilizing and what goals these platforms should help achieve. This way, you can appropriately allocate resources in order to
maximize the impact of your campaigns.
What digital ads budget should you start with?
Research shows that most companies should plan to allocate between 7-10% of their total annual revenue toward overall marketing activities. And of this percentage, making sure at least half of it goes towards digital marketing strategies is key. This is a great way to make sure your message reaches far and wide and maximizes ROI.
Setting up your budget for digital ads
Here are the things you should focus on when setting up your digital ads.
Utilize a budget tracker
A structured budget tracker helps you properly track expenses and analyze how much of your marketing budget should be allocated. It also helps you assess how much your business is performing. Furthermore, a tracker provides an easily understandable graphical representation of your data. This allows you to identify spending trends and make sure you are not overlooking any key metrics.
Review your marketing plans
When it comes to any marketing plan, reviewing your goals beforehand is key. It’s important to step back and ask yourself some questions.
- What are you hoping to achieve by using different marketing channels?
- Are you looking to build more brand loyalty with existing customers?
- Do you plan to increase your number of followers for email campaigns?
The answers to the above will help determine the type of budget you should allocate for each marketing activity.
Reevaluating your goals and strategies from the previous year can also help. Because it can give insight into how those strategies worked so you can adjust accordingly for the next budget period.
The bottom line when allocating a marketing budget:
Make sure that your objectives are clear and that you’re making decisions based on accurate data from prior campaigns.
Budget for digital ads operational costs
When putting together your digital marketing budget, consider all activities related to it and the possible costs, such as;
- Social Media Marketing
- Influencer costs
- Website Costs
- Marketing Salaries
- Agency and Consultant Fees
- Advertising expenses
- Membership fees
- Software costs
Factoring these expenses can help you to better come up with the right budget before creating digital ads.
Focus on your budget for digital ads
Today, more and more Filipino consumers are getting online to shop. This resulted in the continuous booming of digital marketing in the Philippines. Because of this, Digital marketing solutions for small businesses in this country have become more and more essential.
So if you are planning to boost your marketing efforts, make sure to allot the right budget for digital ads. And if you are unsure where to start, book a free digital marketing consultation with Eight Media and get ahead of your game today!