The digital marketing budget is a document that details all the money that the company intends to spend on marketing actions during a marketing period.The budget must include the necessary expenses to implement the different digital marketing strategies that we have defined for our Ecuador Email List business, such as search engine advertising, content creation, SEO and a long etcetera.

The objective is to be able to prioritize the different expenses, have a good planning and correctly assess the return on the investment.There are many reasons for creating a digital marketing budget, such as: Control the marketing costs of the company. The marketing budget allows you to easily break down total and item costs and be able to take action if your spending exceeds what you anticipated.Clearly set objectives in terms of return on investment. Spending in different areas will be allocated based on company priorities and the results we hope to achieve, giving us a much clearer view of how our marketing is working.Prioritize the budget for different actions. As we will see later, there are many areas of spending that we can allocate the digital marketing budget to. Stopping to prepare the budget will help us prioritize the spending allocated to one or the other based on our objectives.Evaluate the return on investment of each action. Having a complete breakdown of costs makes it possible to later compare them with the results of each action and identify which are the areas that provide the highest ROI .Plan for the long term. The digital marketing budget refers to a specific period (usually a quarter or a year), so it makes us specify what actions we are going to carry out and better organize the work of the marketing department.Have a referral history.

Budgets from previous years can serve as a guide to assess the results and introduce the necessary changes without having to re-plan everything from scratch, in addition to helping us understand how the company’s marketing spending is evolving.7 steps to create your digital marketing budget1) Know your target audienceIn order to face the challenge of defining your budget, you first need to know well what your project is like and to whom it is directed.If you haven’t done so yet, now is the time to sit down and create your ideal buyer persona or customer profile . You should also be very clear about the customer journey or customer journey . And finally, you should assess what is the current situation of your company’s digital presence.With all this data, you will be able to better identify which are the channels and actions in which you should invest.2) Make numbersThe first step in preparing a digital marketing budget is to estimate gross income for the period to be budgeted, based on previous results and estimates from the marketing department.On this amount, we will decide the percentage allocated to marketing , which will depend on the situation of the company. As a general guideline, it is recommended that new companies spend between 12 and 20% of their gross income on marketing, while established companies should spend between 6 and 12%.Finally, we would like to know what percentage of this investment we are going to dedicate to digital marketing and how much to more traditional media.

Here we must assess what is the situation of our sector and of our company in particular; in some cases a considerable amount will still have to be allocated to traditional marketing, while other companies operate 100% digitally.3) Set a return percentageBased on the forecasts mentioned above, we have to know what are the benefits that we expect to obtain with the different marketing actions to set specific objectives. In this step it can be very useful to review the previous budgets to see which items we want to increase or decrease.4) Define the objectivesThe figures that we have defined in the previous sections will serve as a guide to precisely set marketing objectives in the short, medium and long term.When setting goals, I always recommend using the acronym “SMART” : Specific: the objectives must be detailed and concrete in order to be useful.Measurable (measurable): in marketing, what cannot be measured does not exist.Attainable (achievable): we must set realistic goals, which are challenging but not out of the reach of our team.Relevant (relevant): digital marketing objectives must be relevant to the company and related to its global goals.Time-bound (with a deadline): the objectives must be defined in time and have a deadline for their achievement.5) Determine the strategiesYou already know what you want and where you start from, so the time has come to define the way forward to achieve the desired results.

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