Digital Marketing accounts for How much of your Marketing Dollars?

As you review your annual marketing plan, it is imperative that you set aside a portion of your marketing budget to your digital marketing efforts. Traditional marketing may still make up a portion of your plan, but digital marketing has become a priority because of its ever-connected landscape. Budgeting all of your operations is important, but budgeting your marketing operations so that you can promote your business and allocate your marketing money intelligently is vital. If you are wondering how much of your marketing budget should be allocated to your digital efforts, read on and learn what you need to know.

Why is Digital Marketing So Important?

There is marketing noise everywhere, but where the noise is the loudest is online. With a majority of the population using the Internet and mobile web devices to stay in touch with friends or get information, the ability to cut through all of the noise online to effectively promote your brand has never been more important. The only way to cut through the noise and be heard on digital platforms is to invest in a digital marketing plan complete with a list of proven tactics. Not only can you build brand awareness on the web, but you can also establish yourself as an authority in the industry, engage your customers, and build a sizable reputation all on the same platform. If you want to gain traction with your marketing or you want to maintain market share, focusing on digital marketing is key.

How Much Money Should Be Allocated to Digital Marketing Efforts?

Now that you know why digital marketing is so important, you might be wondering how much of your marketing money should be allocated to a digital initiative. This is a common question that, unfortunately, is not that easy to answer. You must consider your target market, your total annual revenue, the time frame, and the type of customer you want to reach before you can successfully allocate your budget. You also need to consider what type of initiatives you will deploy.

From SEO, content and social media marketing to email, pay-per-click and mobile marketing, there are several options that can alter your budget. On average, companies will allocate about 2 to 3 percent of their gross revenues on marketing, or 5 percent for start-ups. Out of this percentage, about 25% of the total marketing spend will be on digital efforts. Where the money is spent will depend on both your current standing and your company goals.

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