What Should My Digital Marketing Budget Be?

digital marketing on a laptop

Online strategy covers your website, social media presence, digital advertising… the list goes on.

Small, local businesses can no longer afford not to incorporate marketing efforts into their budgets. And even apart from a general marketing strategy, your digital marketing spend needs attention in particular. There are certainly strategies that you can implement on your own as you research the best ways to reach your target audience. And then there’s the money well spent on handing off certain marketing strategies to the experts. Deciding how much money to allocate can be difficult, but it really is up to your company’s unique goals and your ideal customer base.

Pro Tip: To determine your best ROI on digital marketing spend, make sure you are marketing to the right audience online. Then ask yourself where these customers will most likely come across your business to get the most out of your digital marketing dollars.
What to Spend

Every fiscal year, as you do for all other spending, it’s important to allocate money for marketing strategies. If you’re unsure what that should look like, Small Business Trends says between one and two percent of revenue is a good place to start. This can vary by industry. For instance, furniture and jewelry stores report the highest marketing spending. Of course, your spending will vary throughout the months as you test out some campaigns and hone in on what is working for you.

How to Spend It

Once you’ve decided on your annual marketing spend, break it up into rough monthly averages, or depending on how you work with agencies, how much you’ll dedicate there. When it comes to digital marketing, there are many tools to consider. Online strategy covers your website, social media presence, digital advertising… the list goes on.

It’s important to remember, your potential customers’ first impression of your business is what they find online. Make sure it’s a great impression! A powerful website is key, and a responsive website should follow suit (a site that functions well on mobile and smaller screens). Optimizing your website for SEO should come up next – this is how well you show up in a Google search result page. And look into paid advertising on your social media platforms to reach your ideal clients. Those are the foundations, and you can build from there to prioritize what other digital strategies work best for you and your industry.

Because there are so many ways to work a digital marketing strategy, it’s alright to feel a bit overwhelmed. Remember, the key is to know your ideal client and get in front of them. One way BeLocal helps small businesses reach their ideal clients digitally is by promoting the digital flipbook version of our BeLocal magazine to area residents via Facebook and Instagram ads. If you’re looking for a strategic helping hand to expand your reach beyond this, we have a knowledgeable N2DIGITAL team ready to jump in. Schedule a free consultation call and see where to begin.