4 Tips for Determining Your Digital Marketing Budget
Are you spending too much on online marketing, or not enough to have the biggest impact? Is the money you are spending well-invested, or could it be put to better use elsewhere?
Believe it or not, these are actually great questions be wrestling with, since they mean that you’re fully engaged in your business and looking for ways to run more efficiently. When it comes to finding answers, however, things can be murky. That’s because there is no “perfect” online marketing budget – just what works for you in your circumstances.
To help you determine what that might be, here are four things to think about when setting your online marketing budget levels:
You can’t make good decisions without the right information. Measurement is an often overlooked part of doing business online, but it’s the only way to ensure you’re making the best possible investment. So, if you are getting great metrics from your existing website and promotional efforts, invest in those first, since they’ll make everything else easier.
Track specific actions, not just outcomes. It’s easy to look and see whether your sales are increasing over time, but where those buyers are coming from, and whether you have expensive parts of your marketing plan that are producing at all, is another question. Look beyond the orders you receive to look for other trends as well, like e-mail subscriptions or social media contacts.
Solicit customer feedback. One great way to figure out what future customers are likely to prefer is by asking your current customers what attracted their attention. This is a simple tactic, but one that’s surprisingly effective, so make communication with your customers a two-way street.
Don’t be afraid to try new things in small amounts. It’s tempting to devote your entire online marketing budget to the same tools and tactics that have brought you sales in the past. There’s nothing wrong with putting the majority of your money there, but don’t be afraid to experiment with something new once in a while – you might discover something that’s even more effective.