How to generate a better return on investment by organising your marketing spend
What should your digital marketing budget be?
Should you use part of your budget for Instagram and Facebook ads?
Clients often ask these questions. Setting a budget in marketing can be difficult for both traditional and digital marketing.
Do you have business objectives?
Before spending your budget you should understand what your objectives and targets are. You should set both short term and long term goals for budgets in SEO and paid ads etc, to get a better return on investment. You should set realistic objectives that your budget can reach.
What’s your business’s profit margin?
Knowing how much profit you can make is an important part of digital marketing. Use digital data tools such as Google Ads, Facebook insights and other digital data sources to understand your company’s data. From this, you will gain a deeper understanding of the engagement of your digital marketing such as clicks and conversions, leading to a higher profit margin. If you are unsure on how to do this you could get in contact with an agency.
PPC (Google ads)
PPC is internet marketing whereby advertisers pay every time their ads are clicked. It’s a way to buy visits on your site rather than getting them organically. Google is the primary website traffic driver and it has been for a long time, 2020 is no different for that. With so many searches going through the search engines each day, it is important to get the most coverage possible and rank high using keywords. Using ppc can be an effective way to use your marketing budget and increase ROI.
Create engaging content incorporating SEO that can be used on social media, emails, newsletters etc. The amount that you spend on search engine optimisation can depend on several factors. As well as planning, it is important to understand that SEO will not generate results overnight.
Social media should not be ignored within your businesses marketing plan, it is a platform which most people understand and can generate a great ROI from. Organic social media posts are a great way of increasing brand awareness. However, it may not generate the ROI that you are hoping for. Social media paid advertising is becoming increasingly popular for businesses to reach more potential customers.
It is important to use email marketing within all marketing plans, there are not as many direct costs related to email marketing compared to search marketing. Although, it is a great way to keep loyal customers and stay at the front of their minds. In the past email marketing designs were very basic but now automation platforms can be very sophisticated and can offer a personalised email journey for users. This can be done through several tools for example, campaign monitor and Mailchimp.
Each tool has their own cost and benefits linked to them, looking into this and deciding where to use your budget can boost ROI. Even though acquiring email addresses can be difficult due to GDPR regulations, over time through increased brand awareness it is possible to get new subscribers to your email list and increase revenue.
Instead of spending all of your marketing budget in one area of digital marketing, it is best to distribute it into several channels which most benefit your business and increase ROI. There are various avenues to generate a higher revenue stream for your company therefore, it is crucial to spend your budget wisely across different platforms to increase sales opportunities. You could test these different channels to determine where is best to spend your budget, this will vary depending on your long and short term objectives.