Looking for the tips of budget allocation for digital marketing. It is replacing traditional media at very fast pace. The reasons are many for this shift. But it is happening mainly because of measuring capability of this channel. Budget allocation has also shifted from traditional media to digital media with in few years.
But like the traditional media, Digital Marketing also requires budget allocation. Although, there is a track of every expenditure in Digital Marketing. There are many parameters while preparing the digital marketing budget plan.
How Much You Should Spend on Digital Marketing ?
There are many parameters that should be considered while deciding the spend on digital marketing. Let the things discuss into detail-
It depends on the Competition
The budget allocation for digital marketing depends on the competition in your niche. Highly competing niche requires more budget in comparison to low competition. Higher the competition, higher you need to bid for paid campaign. Competitive keywords are also difficult to rank in google search results. So, you need to pay more to SEO consultant if you are targeting high competition keywords.
Type of Digital Marketing Impacts Budget
Type of digital marketing impacts overall budget. There are mainly two types of Digital Marketing- Organic Vs Paid. So first you need to understand the difference between organic vs paid. Organic includes search engine optimization and social media optimization. While the paid medium requires budget allocation.
Affiliate is one of the important type of digital marketing. It amount is paid on commission basis. So, the Digital Marketing Budget totally depends on the channel and method you are using.
Your Business Goals
Business goals impacts a lot digital marketing budget allocation. Brand building requires huge marketing budget in comparison to lead generation campaigns. Business goals like new product launches needs investment. While, the low budget required for the product already doing good in market.
Size of the Business
Businesses with huge product range needs higher budget. Higher the product range, higher the budget, you need to put for marketing.;
Digital Marketing is Flexible
Digital Marketing is very flexible mode of advertising. It can be started with a very low investment. First, do the trial with small budget and start increasing gradually as per the results you achieve.