It’s important for any company to have the right style of marketing, it’s key for a business to generate revenue. But, it’s vital to know what works for you and your company. To do this, you need the right digital marketing management. This way you know you won’t be wasting your time or money on a system that isn’t suited to your company’s needs.
These are our top tips for making the most out of your digital marketing spendings.
Allocation
No two companies are the same, they all have different goals and budgets, therefore different marketing. When creating a marketing budget, you should focus on how much you’re spending and what the money is being spent on. In order to determine how much is allocated to your marketing budget, you’ll need to figure out all of your expenses and compare that with your company’s revenue.
Any company has to start somewhere, and spending a significant amount of money on marketing can take time to pay off. Typically, as a company grows, as does the amount of money which is spent on marketing.
But what is this money spent on? The most common three expenses are:
- Salaries/wages
- Subscriptions for marketing tools
- Individual campaign costs
If you are spending on digital marketing as well, there will be some added costs for services like email marketing software, SEO optimization software, social media advertising, content creation and website design.
Maintaining control
Before creating a marketing strategy, you should revisit your company’s overall business goals. This way, you’ll have a clear understanding of the direction of the business and how you can improve your marketing communication.
It also vital you are keeping track of your marketing spendings. You might be paying for more licenses or logins than you need, or even be paying for zombie subscriptions, which are subscriptions that continually renew without the subscribers’ knowledge. It’s key that you are aware of this, and know exactly what you are spending on.
Marketing can be a long process; things can’t always happen overnight. So be aware of the progress you’re making with your marketing plan and make sure you are getting something out of what you’re spending.
It’s important to keep the plan up to date each month as performance can change drastically. To calculate run rate, take your revenue from over a month and multiply it by 12 to predict your annual revenue. By calculating the run rate, you can easily monitor campaign spending through the month, ensuring the company is staying on track.
Maximizing budget
Unexpected expenses can crop up at any time and the macroeconomic situation can change in a flash. Therefore, having an allocated percentage of revenue for marketing can change. This is normal, and happens to most businesses, but it’s paramount to keep in mind.
Before investing in a specific platform to campaign on, you should always do your research. A certain channel may work better for your business, therefore give the best results. Research is key to maximizing your budget.
If you analyze which marketing channels have the highest return on ad spend and where most of your leads are coming from, this will give you an idea of what is working. If you’ve noticed that your target audience has moved away from one platform in favor of another, you should possibly consider doing the same.
It’s also recommended to consider budget cuts. Take an in-depth look at exactly where your leads are coming from and start by making cuts to the campaigns generating the least pipeline and revenue. This might mean temporarily pausing ads on specific channels or refocusing the keywords you target.
We hope you now have a clearer understanding of how you can manage your digital marketing budget more effectively.
