Calculating Your Marketing Budget
- Identify your gross revenue: This is revenue before any expenses, deductions, or allowances. If you are a new business or the market has changed, you can use estimated revenues.
- Determine your ideal marketing budget: If your company is younger than five years old, your budget should be in the 12% to 20% range. You need to spend a high amount to help establish name recognition. Older companies should budget between 6% and 12% unless you are establishing a new brand name.
Allocating Your Budgeted Funds
- Branding
- Events
- Public relations
- Print ads
- SEO
- Social media
- Training
- Website
Understand 2020 Digital Marketing Trends
- More than 90% of customers claim to rely on influencers to help them decide on purchases. In other words, it makes sense to allocate money for influencer fees.
- You really can’t afford to ignore video because it gets results. You can create streaming or live video for a modest cost. Check your community resources for companies that can handle video for you.
- Sophistication is on the rise. Look for increased use of artificial intelligence, video search, and 5G networks.
- You can better convert website visitors to leads by making your site more interactive. Think about adding live chat, quizzes, games, and even virtual reality.
- Do you understand micro-moments? These are instances where folks reflexively utilize their device(s) to do, watch, discover, buy, or learn something. In a micro-moment, people are ready to decide and/or spend money. For you, this means helping visitors act on their micro-moment. You do this by providing value, including timely articles, links to valuable resources, tools, help desks, etc., on websites and apps.
- Be aware that smartphones may eclipse websites this year in terms of video-based advertising.
- Concentrate your marketing on social media sites most relevant to your potential customers, be it Snapchat, Instagram, Twitter, Facebook, YouTube, etc.
- Never forget that content is king. That means you should allocate sufficient budget to pay for high-quality, authoritative, and timely articles employing SEO features to drive an organic presence in search results.
