How Much Should You Invest In Your Digital Marketing?

If you own your own company then the pitfalls of not marketing enough are already apparent to you, and you don’t need a lecture on why… although you may need to compare the benefits of Digital Marketing to that of traditional marketing.

The modern consumer lives their life online, using the internet as much as twelve hours a day. In 2016 it was estimated that the average US based person spent five hours a day on their mobile devices – but many of us spend even more than that. In this digital age a potential client is far more likely to see your logo online than they are to notice it on the high street, and, with that in mind, Digital Marketing has soared in popularity and importance. It looks a lot like it will be the main body in which companies choose to advertise in the future. So how much should you invest in it? We put together a few pointers to help you on your way!

The average in-app advert costs about 50 cents for two thousand impressions.Imagine how far your money will stretch by comparison to more traditional advertising means.

Since 2009 big brand companies marketing investments have been stable with a slight increase year upon year. In 2018 there is no new information that this will change. It might help to add a five percent rise to whatever you spent last year and budget this way.

Big Brand companies tend to invest a little over 10% of their annual budget in Marketing on average by one means or another. Work out how much this allots you and split it between traditional and digital Marketing. In 2018 it is expected that the average company will spend 41% of their budget on Digital Marketing, but this has expressed steady growth year on year and is expected to hit 45% by 2020.

Both Google and Facebook are bracing themselves for a 71% rise in advertising use this year, so that might give you an indication of how much to invest there, and also of what the best social media advertising platform is at the moment. Estimates are that Google spends around a billion dollars a year on their own advertising.

Allocating a percentage of your sales profit is a good way to work out your marketing budget. For smaller businesses than Google, this tends to run between 7 and 8 percent, although the smallest of businesses go down as far as 2%… we’re not saying this is a mistake – only that 2% is not what we’d recommend, especially after it is worked out as the aforementioned 41% toward Digital and 59% towards traditional marketing measures.

Although this is not an exclusive answer to your question, we hope that by sharing these few insights we have given you a strong foundation upon which to begin planning your budget. Unfortunately nobody but your own company can give you more exact figures than what we have – but at least now you know where to start!

As a full service agency, we are proud to work a vast number of clients, big and small. Our services are based around not only the budget requirements of the client but also their needs – Don’t use services you do not need and please ensure you use a dashboard or such like to track statistics and ROI.

No matter the costs and work involved one thing is certain – without any digital Marketing at all your business will suffer, so keep up with the trend and move with the times, and watch your business grow!


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