As businesses determine their marketing budget, whether through traditional means, following trends, or custom formulas, the trend indicates a growing allocation towards digital marketing each year. A survey of over 500 CMOs reveals that 58 percent of them are reallocating funds from traditional to digital marketing. The actual monetary amount of your digital marketing budget depends on factors such as business type, size, and industry. However, you can benefit from our article, which offers three valuable tips from AAMFunnel, a performance marketing agency, to optimize your company’s digital marketing budget, ensuring maximum value and alignment with business objectives.
How to allocate your marketing budget
Determine your digital marketing tools
To optimize your marketing spend, it’s important to understand what falls under the digital marketing umbrella. While online activities are generally considered digital marketing, not every activity or service may be categorized as such. By defining what’s included, you can focus on the right platforms.
Key activities to consider are:
- SEO, which drives traffic and generates leads;
- social media, a valuable source of qualified prospects;
- PPC advertising, known for its targeted approach;
- email campaigns, a pull strategy for online marketing;
- digital display, including non-intrusive banner ads and emerging video marketing;
- content creation, a critical component for overall success.
Research where your target audience spends online time
To work on your marketing budget, start by understanding where your target audience spends their time online. It’s common for marketers to be surprised by the findings of such investigations, as their assumptions about customer activity may not align with reality. For instance, if you invest heavily in LinkedIn but discover that your customers primarily engage on Facebook, it indicates an inefficient allocation of marketing dollars. By utilizing analytics and advanced metrics, such as GA4, you can track audience behavior, their dwell time, and factors that drive them away.
Test different channels
To optimize your digital marketing budget, it’s crucial to test multiple channels as what works for one marketer may not work for another. By establishing key performance indicators (KPIs) early on, you can compare the performance of various channels against your goals. Then you’ll be able to identify the channels with higher conversion rates or more favorable cost per conversion (CPC). This testing approach helps you seize opportunities and avoid ineffective areas, allowing you to allocate your budget wisely.
Social marketing agency AAMFunnel
AAMFunnel, a leading digital marketing creative agency, is dedicated to helping businesses optimize their budget in digital marketing. With their expertise in advertising and marketing services, they understand the intricacies of various digital channels and can effectively guide businesses to make strategic budgeting decisions. Through their data-driven approach, they continuously monitor and optimize campaigns, adjusting strategies to deliver the best return on investment (ROI). If you aim to scale your marketing, use AMMFunnel agency as your trusted partner to achieve a more efficient allocation of your digital marketing budget and drive meaningful growth for your business.