Making Sense of Your Digital Marketing Budget: How to Allocate it Effectively

Enhance your online strategy with tips on effective allocation of your digital marketing budget—drive success with purposeful spending.

Are you ready to drive significant growth for your business, but struggling to decide what kind of budget you should be allocating to digital marketing? Fractional CMO, Joshua Ramsey’s conversation with a prospect (summarized below) reveals valuable insights. This blog breaks down key aspects of a digital marketing budget and aims to explain the reasoning behind those scary dollar amounts.

Your budget should primarily depend on the outcomes you expect to see. Before arriving at the magic figure, it’s critical to have a good understanding of the size of your target market, the scope and number of marketing programs you run, and how solid your SEO game is. Let’s start at the top.

This factor influences the complexity and volume of the campaigns you’ll need. As the saying goes, the bigger the fish, the bigger the bait required.

How well is your SEO performing? And how many marketing campaigns are you running? You’ll need enough resources to manage or implement all of them efficiently, and a robust SEO strategy can often require substantial investment.

Here’s where the conversation takes a frightening turn: A ballpark figure suggests a minimum budget of $6,000 per month for the first three months to establish a firm base. Sound terrifying? Let’s break it down.

During the first 30 days, we delve deep to figure out answers to all the why’s that influence the cost. The knowledge gained will help us in crafting a concrete marketing plan and budget that justifies every cent spent.

The breakdown goes something like this:

• $6,000 for 3 months.
• A reduction to around $4,500 per month after for overseeing teams, managing campaigns, reporting, adjusting strategies, and assessing ROI.
• For implementation and execution, count on approximately $1,500 to $2,000/month on top of Josh’s cost.

Note: We are quite flexible and can adjust to match your ROI and budget.

Equally important are the tools we use to draw in the prospects and engage with them. Investments in Customer Relationship Management (CRM) and LIVE CHAT tools would ideally hover around $250/month and $500/month respectively.

Every business will have different sales values. If your business stands to earn high revenue and retain a customer over the long-term from a sale, it’s sensible to invest more in attracting new customers.

To conclude, calculating a marketing budget involves assessing many variables. It’s a complex process but, done correctly, it provides a solid foundation for your business’s marketing activities. Allocating the right budget might seem a daunting task initially, but once we decode all aspects together, you’ll appreciate the clarity and structure it brings to your marketing plan.

In addition, the landscape of digital marketing can be confusing and complicated. But rest assured, your budget doesn’t have to be. The key lies in a well-planned strategy, intelligent allocation, and continual assessment. If you’re in need of guidance or advice regarding your digital marketing budget, don’t hesitate to connect with us at jrcmo.com. Our experienced team is equipped to assist and support you at every stage of the journey, helping you maximize your budget effectively and achieve your marketing goals.