Marketing

How to Allocate Your Digital Marketing Budget in 2019

By November 6, 2018 No Comments
digital marketing budget in 2019

Spending money on marketing isn’t really optional when trying to grow your business. However, there’s debate about where that money should go. If you’re stumped on how to best allocate your digital marketing budget in 2019, here are tips for how to spread your budget to get the greatest ROI.

Here’s how to allocate your digital marketing budget in 2019

What should your marketing budget be?

When calculating your overall marketing budget for the upcoming year, there are a few factors that will determine your digital marketing budget in 2019. These include industry, company size, how long your company has been around, and your goals.

First, taking a look at your industry, you need to ensure you’re spending your budget on par with industry leaders so that you can compete with your competition. A study conducted by the American Marketing Association and Duke University found that on average companies spend around 11.4% of their revenue on Marketing. However, this spend varied quite a bit by industry. The Education industry, for example, spends the largest amount of revenue on marketing efforts,  spending 18% on average.

The next thing you’ll look at when calculating your marketing budget will be your company size. If your company is larger, and therefore has a greater amount of revenue, chances are good that more of the revenue can go toward your marketing budget. If your company is smaller, you’ll most likely be a little less liberal with your budget.

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Next, you’ll look at how long your company has been around. Depending on whether you’re a new company or an established company, you’ll most likely spend your marketing budget differently. According to the U.S. Small Business Administration, small companies (those who make less than a $5 Million net profit), should spend more conservatively than large companies. Here’s how that breaks down:

how to allocate your digital marketing budget in 2019

Pull data and set goals

Before you divvy up your digital marketing budget in 2019 you’ll also look at the existing data you have and set some goals. Pull benchmark data on your current performance so you have something to compare to when analyzing the success of your digital marketing efforts. Also, take into account your past marketing efforts. Determine what channels have worked and what haven’t so that you don’t make the same mistakes twice. Also take into account what you’ve spent on marketing in the past.

Finally, you’ll need to take into consideration where your competitors stand. Each industry is different, so using your competitors for guidance about where you should spend your money and how much you should spend will help you compete in your industry. Take note of their marketing mix to get a better idea about where to start.

How to allocate your marketing budget

Although each industry is different, there are some basic rules of thumb when deciding where to spend your digital marketing budget in 2019. More than ever before, your digital marketing efforts should be focused on setting your brand apart and cutting through the clutter. Here’s an example of how you might allocate your marketing budget in 2019:

#1: New Marketing Software

First, when considering where to allocate your marketing budget, you should consider new marketing software. There are a ton of different softwares available to fit your company, both large and small, that can help you better manage your marketing efforts and how they result in new leads and sales. A few marketing softwares to consider are:

  • Hubspot
  • Active Campaign
  • Mailchimp

#2: Branding

Your brand means everything in 2019. Developing a cohesive brand presence through your website and marketing messages will help your company gain loyal customers. Spending your marketing budget to strengthen your branding is a smart way to allocate your budget in 2019. Ideas for doing so would be: running branded ads, running remarketing ads, connecting your brand to industry influencers, spending time and money perfecting your website, and making all marketing materials cohesive.

#3: Content marketing

Another area to allocate your marketing budget in 2019 is towards content marketing efforts. Whether you follow the inbound marketing methodology or not it’s a good idea to create compelling content for your brand. Creating content that your target audience finds interesting and useful is a good way to bring in new leads and help move them through your sales funnel. It helps you position yourself as a leader in your industry as well.

#4: Paid Advertising

Another key area where you should allocate your digital marketing budget in 2019 is toward paid advertising. Depending on your overall budget and how your target audience is best influenced, you should split your ad budget between social ads and Google Adwords. Social ads may include Facebook, Twitter, Instagram, LinkedIn, or wherever you audience is active. Google Adwords ads may include search ads to get your customers’ attention as they look for solutions, or remarketing ads to keep your brand at the top of their mind.

#5: SEO

The next marketing area you should allocate your digital marketing budget toward is SEO efforts. Making sure your website is a well-oiled sales machine all boils down to how compelling the copy on your website is and if it’s easy to find. Spending money and time on SEO can pay off in the long run as customers keep discovering and rediscovering your content.

#6: Social Media Marketing

Social media is still important in 2019 too, if you use it correctly. Chances are your target audience is influenced in a completely different way on social media than ever before. After considering where and how much budget you’ll allocate to social ads, you’ll also need to consider spreading some of your marketing budget to a social media strategy. This will include organic, unpaid methods to attract attention. Though you will be competing with many other users and businesses for your audience’s attention, organic interactions are seen as more authentic on social media, and can be helpful for responding to complaints or concerns, and building your brand reputation.

#7: Email Marketing

The final place to allocate your digital marketing budget is to email marketing. Targeted email workflows are a key component to moving leads through your sales pipeline. However, it’s no longer effective to send one-off emails without an accurate follow up or consistency. There are a few major email marketing strategy shifts you need to make to have an effective email marketing strategy in 2019. This area still deserves some of your marketing budget though.

Depending on a variety of starting factors, such as your company size and the amount of time you’ve been around, you should have a pretty good idea about how much money you can allocate toward your marketing budget. Once you have a base budget in mind, use these 7 factors to determine where to allocate your digital marketing budget in 2019. Allocating your budget in the right way can make or break how effective your digital marketing efforts are at bringing in new leads and closing sales.

Are there any areas we missed that you think deserves some of your marketing budget? Let us know in the comments.

Simplify your marketing budget. Download the free Marketing Budget Template.

Streamline and Simplify Your Digital Marketing Spend in 2019

Download the 2019 Digital Marketing Budget Template

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