Digital marketing budget: What it is and examples
Marketers need to make a digital marketing budget before proceeding and get approval from their superiors. On the other hand, people outside this sector such as directors or managers can feel overwhelmed by so many concepts and measurements that they do not really understand.
From here we are going to teach you how to create an online marketing budget in a simple and perfectly understandable way for those who are not so familiar with the subject. There is no secret to achieving it, it is enough to be very clear about what it is for and how it can help a company achieve its goals and objectives.
What is a digital marketing budget?
The budget in digital marketing is a type of document that explains the actions and strategies to follow in an advertising campaign, in addition to breaking down the financial resources that will be necessary to obtain the objectives set in a certain period of time.
It is a kind of guide, whose objective is to organize efficiently based on a forecast of expenses and an approved budget that will avoid losses that endanger the financial system of the business.
Having a digital marketing strategy budget is of the utmost importance for any company that wants to grow. The idea is to manage financial resources efficiently, putting in order the actions, the period, the channels and the people in charge dedicated to making it possible.
In addition, it will allow real-time monitoring of the budget used to ensure its mission. Therefore, it will also be possible to make all kinds of adjustments to any error or new opportunity presented to obtain the best possible results.
Likewise, the document will be available at all times to study the model of action that worked to use it as a guide. It also acts as a key reference when making decisions in the future.
How to make a digital marketing budget?
When preparing a digital marketing budget, one of the most interesting aspects is to know the audience to address it in a timely manner. In this way, it will be possible to know precisely the type of content, the channels to be used and the tone of communication used. Knowing this information is essential to continue with the next steps, such as the objectives to be covered.
Then, it is necessary to consider the objectives that benefit the company, which must be in accordance with the target audience, and analyze the actions that were carried out in the past to better define the strategies of the present.
Choosing the most appropriate channels to implement strategies and establishing key indicators (KPIs) are two more elements to take into account when developing a successful marketing plan. And it is that the latter will allow us to know if the efforts have given their benefits or, on the contrary, they must be modified.
When making a budget of such characteristics, it is important to be realistic and meet the needs of each organization. Likewise, all the necessary resources to carry out the different actions and strategies that are part of the action plan must be included.
How to structure a marketing budget step by step
When structuring a digital marketing budget, these are the steps to follow:
Indicate the objectives to be achieved
The defined objectives must be measurable, concrete, temporary and, very importantly, achievable. It is essential to have it clear because it will be the basis on which to develop the marketing plan.
Analyze the expense of the previous item and its results
If the company has a previous digital marketing budget, it can be useful to use it to know what was the time invested and the results obtained. This way it will be possible to improve the figures.
Define each budget item
The budget must contain all the strategies to be developed. Among the most used in digital marketing, the following stand out:
Web design and maintenance
This is digital marketing, so the web becomes the main letter of introduction to the user. The idea is to offer a good browsing experience through a simple design, clear texts, adequate loading speed and well-designed branding (marketing), among other things. Through the changes and improvements made, it will be possible to capture leads, generate conversions and attract organic traffic.
It consists of working on the visibility of the website through the use of On Page techniques, which are carried out within the web, and Off Page, that is, outside the web. This strategy works and, if done well, allows customers to easily find the brand on Google, although you have to have a little patience to see the results and constantly work on it.
Its objective is to establish direct communication with the user through the use of emails to attract, persuade and retain the leads previously captured. Subscribers are potential customers who have offered their data to the company to obtain more information, so their conversion rate is usually quite high.
Google Ads and Social Ads
Google Ads is an advertising platform that can be used to promote the project. The same happens with Social Ads, another tool used to advertise on social networks. Both are paid and are perfect to be combined with the rest of the digital strategies.
It is the ideal channel to reach the audience, enhance their interaction and create a great community. To bring it to fruition, it is necessary to know in advance what content to create and who is the Community Manager who is going to manage it.
Web design and maintenance
It is a fundamental expense when creating a website or to improve the existing one, and it is an item that should be part of the digital marketing budget. The expenses to consider refer to the domain, hosting, website maintenance, plugins, web design, graphic design creation, website images and copywriting, among others.
It consists of creating and disseminating relevant content for the target audience. Without this strategy, all the others are meaningless because it is present in each of them in some way.
Other concepts associated with press releases, influencers, merchandising, attendance at events and training are also usually included in the budget of a digital campaign. It is always interesting to include it, although the company can prepare some of these tasks on its own to reduce the final rate.
Calculate the expenses of each point of the budget
Once the aspects to be covered in the action plan are clear, the next step is to allocate the money that will be allocated to each item. This point is decisive because it will show the different areas that we are going to treat and how much to invest.
Dump all this data to a document
Once all the details of the digital marketing plan have been analyzed, all that remains is to transfer the available information to a document or template that gathers all the budget data, such as Excel.
It will be a very effective guide in which to prepare budgets on a quarterly, four-monthly, semi-annual or annual basis.
The budget of a digital marketing campaign will record an estimated amount to allocate to the digital project through the breakdown of several clearly differentiated items. As we have mentioned, previous budgets are often used as a reference to check which actions worked and what their cost was.
It is the best way to prioritize tasks and control expenses, knowing in detail what has been invested in different resources.
How much does a digital marketing project cost?
The average price for hiring a digital marketing project can vary from €250 to €2,000 per month. The truth is that the pricing of the service will depend on several factors that must be paid attention to, such as the type of project, the client in question, the services finally contracted or if the work is carried out by a freelancer or by an agency. of digital marketing.
The parameters that usually influence digital marketing rates to a greater extent are basically the following:
Price per hour
When determining digital marketing rates, there are two different ways: fixed price for the entire project or cost per hour. In the latter case, it is a fixed price per hour that must be multiplied by the number of hours spent on the project.
The value per hour of each professional will depend on her profile, that is, her experience, career and reputation. It is typically used by marketing agencies and for frequent or long-term projects.
This price will depend on the needs set by the client. Normally, they are applied in the case of specific projects without any future perspective. In this case, the rate will also depend on the training, experience and reputation of the agency or professional in charge.
Be that as it may, in the rates per project it is key to clarify from the beginning everything that is included in the final cost, such as the maximum proposals submitted or the planned changes.
Online marketing covers different jobs, from the creation and development of a website to advertising campaigns or image design, through email marketing services or the development of electronic commerce.
The project can be specific, such as perfecting existing digital marketing techniques, or comprehensive to create the entire strategy of a brand. Thus, the price will vary from one service to another.
Number of contracted services
When developing a specific digital marketing plan, it is possible to develop the part that interests the client. Normally, the most demanded services tend to focus on search engine advertising (SEM) and social networks, as well as SEO positioning.
If we start from the basis that each company is unique as well as its needs, the rate will be based on the particularities of each one of them. For this reason there are monthly packs adapted to each brand, equipped with a series of specific services that may include writing a blog, managing social networks or SEO and SEM positioning.
Working for a client that has well-defined objectives is not the same as working for one that is new and needs greater effort and dedication. The type of activity carried out and the business model must also be taken into account, as there will be brands that already have their own website and others that need a complete digital transformation.
Independent professional or digital marketing agency
Each option has its pros and cons. For example, in the case of the digital marketing agency, it has the necessary multidisciplinary team to offer a very complete service, while the capacities of the freelance professional will be more limited and it may be necessary to hire other professionals from the sector. Now, having the help of a freelancer can be interesting when hiring a specific service such as working on the SEO of a blog.
When opting for one option or another, the company must be clear about the objectives and needs to be covered, seek the best advice to stay informed about the tasks to be carried out and know what is or is not included in the budget.
Social Media Marketing
Social media plays a vital role and covering this area is often part of the digital marketing budget. Social networks make it possible to reach more people, improve the brand image, publicize products and services, and find out what users think of them in order to improve them.
The specialist in charge will have to manage the campaigns, although it is important to complete their mission with content creators or designers so that the messages resonate with the public, something that implies an additional service and an increase in the final rate.