Creating a digital marketing budget often requires a lot of guesswork and best assumptions on how the money will be best spent in your organization, without really knowing if you will receive any ROI.
No one wants to put money towards an activity that doesn’t work, but teams also need a budget to experiment and see what types of initiatives will be successful.
Finding the perfect mix of tried and true budgetary expenses and leaving enough for new ideas is a difficult balance to try and meet, but it’s important that you do your best to avoid overspending.
How Much to Spend on Digital Marketing
Setting a digital marketing budget is often the Ws Number List responsibility of team leaders in the marketing department.
While Budgets Will Need to Be Approved by Accounting, Finance, or Upper Management Teams. It’s the Job of the Marketing Leadership to Provide a Budget. Outline and an Explanation as to Why Certain Activities Require the Requested Amounts of Money.
A Common Rule of Thumb That Most Brands. Use is to Spend Around 7-10% of the Overall Revenue on Marketing Activities.
Of that amount, around half of it should go toward digital marketing initiatives.
With that in mind, it’s important to note that every company and industry is different. Some organizations will require much more to go towards digital or will spend a higher percentage of the overall revenue on marketing activities.
Adjust your budget to account for your marketing goals and the priorities that you determine matter the most.
You’ll need to know what’s standard in your business and what expectations are set for you before you begin.
Consequences of an Incorrect Budget
It’s important to do the best you can to get as close as possible to the money you will need during your budget planning.
If you miscalculate, there are several consequences that you might face.
The first risk is your personal reputation as a leader.
Your teams and your bosses won’t have as much trust in you if you fail to allocate the JPB Directory right resources properly to the different campaigns and initiatives you want to have.