Category: Digital Marketing

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How Much Should You Spend on Digital Marketing in 2019?

With the majority of world population using the Internet to fulfill their needs, it would be a mistake not to reach out to them with your product or service.

For this to happen, you need to have an online presence coupled with an effective digital marketing strategy.

One of the most important parts of a digital marketing strategy is deciding on a budget.

Marketing is a bottomless pit. The more you spend, the more results you will get, when done right. However, since resources and funds are limited, you need to plan how to efficiently use them to maximize ROI.

If you are already spending funds on digital marketing, but not getting the expected ROI it could be either you are not spending enough or not spending right.

This makes it even more critical to plan out your digital marketing budget in 2019 carefully.

Things to Consider When Planning a Digital Marketing Budget

When planning your digital marketing budget for 2019, there are a few key factors that you need to consider.

Digital marketing budget depends on three things: the company’s goal, size and product life cycle phase.

Goals and Objectives

The goal of the company is perhaps the most important factor of all. You cannot plan a digital marketing budget without setting out the goals first.

Most of the companies either have the goal to get more leads or grow revenue.

According to a survey conducted by Ascend2, 18% of respondents sought lead generation and another 18% of respondents wanted to grow revenue.

Lead Generation and Sales Revenue Survey

If the goal is to get more leads, then you have to focus your digital marketing budget on acquisition mostly.

If the goal is to increase sales revenue, then the budget must be distributed between acquisition and retention.

Company Size

Large companies tend to have really high recurring revenue, which is why their digital marketing spending is really high usually.

On the other hand, small businesses don’t usually have that much revenue to spare for digital marketing. They have to be really conservative.

Large companies can spend their digital marketing budget on all the channels, whereas SMBs have to focus on a few channels that matter the most for their business.

Product Life Cycle Stages

At the first stage, there is no need to spend anything on digital marketing as the focus is on launching the product.

Starting from the second stage, which is growth, companies usually spend a higher percentage of their revenue on digital marketing to establish their product or service in the market.

At the third stage, the maturity phase, companies spend a small percentage of their revenue on digital marketing because the product is already established and has a significant market share.

The fourth stage is the decline, where there is no need to spend anything on marketing.

Once you have considered all these factors, you are ready to plan out the budget.

How Much Do I Need To Spend on Digital Marketing?

Actually, there is no one-size-fits-all answer to this question. It really depends on the three factors discussed above.

However, US Small Business Administration suggests marketing spending to be 7% to 8% of the revenue. Companies can also take a look at other companies in their industry.

According to CMOSurvey, companies on average spend 6.5% to 8.5% of their revenue on marketing. This varies according to the industries.

Consumer Services and Education sectors spend the most on marketing, as shown in the figure below.

Marketing Spending Industry wise

Considering all the factors and industry average, it shouldn’t be that difficult to decide how much to spend on digital marketing.

If you are still not sure, CANZ Marketing is here for you. We are just a call away. Contact us now and we will help you from strategy to budgeting.

How to Allocate Digital Marketing Budget in 2019?

Before you start allocating budget to various digital marketing channels, it is wise to analyze which channel actually works best for your company.

This way you can spend more on things that work to maximize the ROI, spend some of the budget on new and unexplored channels, and avoid wasting budget on things that don’t work or don’t contribute in achieving the goals and objectives.

How Much To be Allocated to Various Channels?

Organic Marketing

Organic marketing or Search Engine Optimization takes time to shine, but it pays off in long run. If you are not in a hurry of getting sales or leads, then you should spend more on organic marketing.

If you have the right strategy, you can reap the benefits of higher ranking for a long time, maybe forever.

Paid Advertisements

If you want to get leads or sales quickly, then go with paid ads or PPC.

Spend more on PPC and it will pay off in a short period of time when done right.

However, PPC is expensive, it will exhaust your budget quickly in a long run.

An effective strategy is to spend on both PPC and organic marketing.

Social Media Marketing

Social media is not an ideal channel if you are looking for direct conversions.

According to a report released by Shopify in 2018, social media has a 2% conversion rate, which is the lowest of all channels.

Social media should be used when you want to build the audience, reach your target market with offers, create engagements in the community or drive traffic to your content. If you have such goals, spend some percentage of your digital marketing budget on it.

Email Marketing

As you might have noticed in the image above, email marketing has the highest conversion rate. This happens when you have maintained a subscriber list. It is best to spend on this channel anyway.

Not all of the traffic coming to your website converts immediately.

Some require nurturing, while others don’t need your product or service at that time.

If you can get them to subscribe for emails, you can send them the latest offering.

Is That All I Need To Know?

Of course not! Planning an effective digital marketing budget requires continuous improvement.

Once you have started digital marketing, you will start getting data.

Make sure to track all the traffic, conversion and other marketing intelligence data.

This data will help you sharpen your digital marketing budget planning in the future.

How much has your company set aside for digital marketing budget in 2019?

Starting a New Company? Here’s How You Can START MARKETING For Free

Starting a new company could be overwhelming with all the legal work, office setup, hiring and branding – it won’t be incorrect to say that it requires a ton of work before you start working as a new company.

A lot of companies put forth their marketing budget for the first quarter, but that’s not the case with every company.

Let me be honest with you, a lot of first-timers don’t have a clear roadmap of marketing. Sure, you might be an exception, but you always know someone doesn’t know how to cash in on Facebook, Twitter, and YouTube from a business standpoint.

So we came up with an idea of sharing some FREE MARKETING tactics with small and mid-sized businesses that are just starting out.

If you’re starting a new company or you want to explore how to START MARKETING FOR FREE, then grab a cup of coffee because you might want to look at all of the free marketing techniques written below:

Make a Website Up and Running

If you want to start off on the right foot, then build a website that explains everything your company does.

Many business owners get caught up in the layout design and responsiveness of the website and slightly ignore the fact that copy is the key to visitors’engagement.

Never ignore writing a perfect copy for your website. It doesn’t mean stuff every page with lots of text, but rather try to explain each and everything you do and how you can help the customers.

You might want to make your website up and running before the company starts operations.

One of the common mistakes many new companies make is that they put up a coming soon (landing) page and their website never goes online for months.

You have to understand that your business website is the pedestal to showcase your strengths on the internet.

Optimize Your Website for Search Engines

When it comes to free marketing, the website optimization is one of those things that would require your energy, attention, and sweat.

If you aren’t aware of website optimization, then go to Google or YouTube, and type in “how to optimize your website” and you’ll come across tons of resources to learn from, in case, you have no idea about it.

The core idea of the website optimization is that the website pages must be search engine-friendly. It means that pages must contain a set of information that describes the purpose inside out.

The title, however, is the first thing that search engines read while retrieving the search results from their index.

Similarly, using the headlines and bold text also help search engines determine the type of the content and its context to certain keywords.

Moreover, optimization isn’t limited to the text-part of the website, but instead, there are many aspects of a website that encompasses the optimization such as the speed of the pages, images metadata, and web server quality.

So many things jointly work together to depict whether or not the website is optimized. If you want to get customers without spending money on online advertisements, then optimize your website for search engines.

Put Out Content on the Internet

A lot of people get confused when they hear about putting out content on the internet.

What this means is that you should create content around your expertise, strength, skill, or product to help people out by delivering value.

The internet provides us a platform to communicate, connect, and educate. So what you need to do is that leverage the social media platforms and your official blog to put out content to help, educate, and engage people.

 

The problem with many people is that they don’t get out of their comfort zone and keep thinking about what type of content to produce and where to put out.

There are plenty of social media outlets such as Facebook, YouTube, Twitter, Pinterest, Instagram, Medium, and LinkedIn. Use articles, podcasts, videos, infographics, and pictures to put out content and send your brand’s message across.

Offer a Limited-time Discount

Attention and psychology are the two secrets of marketing. By offering a limited-time discount, you can grab the attention of the audience and tell them about the offer you have for them.

Most of the times, it’s a 50% or 70% off that attracts new customers to buy the product they’re interested in using.

The similar strategy is often used by the event organizers by offering a huge discount on early bird tickets.

Set up a Lead Magnet

One of the best ways to start marketing for free is by setting up the lead magnet.

It’s also known as optin bribe in digital marketing. It allows the website visitors to download a file by giving away their email addresses.

Many companies use PDF eBooks, checklists, or survey reports as lead magnets to collect the email addresses of the visitors to build up their email lists.

Later on, they could send the email newsletters containing new content, updates, and offers to the entire email list.

Not only does it build a platform of communication with the audience, but it also allows companies to market their products for FREE.

Repurpose Your Content

Repurposing the content means using the essence of the content to produce native content on another platform.

For instance, if you published a blog post on your blog, you make an infographic on the very topic enlisting all the points of the blog post and post it on Pinterest; it’d be repurposing the content.

Have you not seen many experts and influencers posting short videos on Twitter and Facebook?

What they do is that they take the snippets of their (YouTube) videos, and put it out on LinkedIn, Twitter, and Facebook to provide the audience with more content.

Same goes for the other platforms; you can take your YouTube video, and repurpose it into a Medium blog post.

Let’s Wrap Up

It’s highly unlikely that you don’t want to start marketing for free right at the beginning of your business journey.

We at CanzMarketing help companies navigate through by providing them various marketing services such as a Facebook advertisement, SEO, Content writing, and website designing.

How to Get Started With Digital Marketing – A Beginner’s Guide

Have you ever felt overwhelmed while listening to the marketing experts about Facebook ads?

Chances are, you might be new to digital marketing, or you haven’t started marketing your business on the internet.

Either way, it’s imperative to pay attention to the ways to grow your business in today’s environment.

We’re not worried that whether you’re a B2B company or a B2C company; what concerns us today is that you may not be obliging the most underpriced platform of marketing, which is the internet.

So, the purpose of discussing digital marketing is that someone needs to take the responsibility of educating the brands, startups, and organizations on reaching out to the new audiences through the internet.

Ever wondered why to start digital marketing when you can get a TV commercial during the Super bowl or place an ad in a famous print magazine? Then let us spill the beans.

This infographic shows that almost half of the U.S. digital ad spending in 2015 was on the mobile platform.

It untangles the fact that the attention of the consumer is shifting from the “old media” to the “new media.”

We’re here to discuss how you can win in today’s digital marketing age where technology, social media, and the internet are the new pillars of modern-day communication.

 

What’s Digital Marketing, anyway?

Digital marketing is a way of creating an online brand representation through various tools across multiple platforms.

The core purpose of digital marketing is starting up the conversation and beginning the engagement process between the brands and the audience.

However, some brands opt digital marketing for brand positioning, but others prefer to do it for lead generation.

In other words, a digital marketing campaign is designed to send the brand’s message across.

It comes down to the way of looking at the marketing possibilities that we have now.

 

Why Should You Start Doing Digital Marketing?

It’s something you might ask at some point if you have stumbled upon the videos or articles related to digital marketing lately.

There are three fundamental reasons why a business should consider doing digital marketing:

1. Brand Positioning

It refers to the process of creating an image of the brand in the prospective customers’ mind. We have been using this strategy for many decades.

The companies have been using radio ads, billboards, magazine ads, and TV commercials for a very long time to do the same thing.

They bombard us with their adverts and try to create an image of their brands in our minds.

It does work when we go shopping and grab the same product that we watched on TV or in a magazine.

Today, brands are running ads on Facebook, Twitter, YouTube, and Instagram to snatch our attention and trying to showcase what they’re selling.

In other words, digital marketing has become a vital tool in today’s marketing arsenal.

2. Audience Engagement

Audience engagement is another reason why brands need to focus on digital marketing.

Audience engagement is something that breaks the ice and brings the prospect and brand closer.

Have you ever seen a sponsored video on Facebook and liked the page afterward?

If yes, then the brand has successfully done the brand positioning and audience engagement.

It’s not like that a prospect sees your ad and instantly buys the product.

Brands know, which is why they take the time to build the trust with the audience, and thus the engagement begins.

Gary Vaynerchuk explained in a video that Twitter isn’t just about sharing your content, but instead, it’s about engaging with people.

He went on to share that he invested so much time in replying to the conversations in 2007-08, and therefore, he was able to amass a huge following on the platform.

3. Customer Acquisition

One of the main reasons a lot of brands pay attention to digital marketing is that it helps them gain new customers.

Not only does it bridge the gap between the brands and new audiences, but it also plays a role in converting the prospects into paying customers.

 

A 4-Step Process to Get Started with Digital Marketing

Step #1: Build Your Persona

Before you get your hands on the tools and strategies that you’re going to learn in this article, I’d recommend building your persona.

What I mean by building your persona is that you must define who you need to reach out and communicate through the digital marketing process.

To build your persona, you have to classify the ideal customers to make them stand out from the crowd.

For instance, you might not want to show your makeup products Facebook ads to the male audience, because by and large, they won’t be interested in buying those products.

To make it easier, you can start off by analyzing the following key indicators:

  • Demographics
  • Behaviors
  • Likes and Dislikes
  • Goals
  • Motivations
  • Patterns

The purpose is rather simple; if you want to target the audience and reach out to the ideal prospects, you’ll need to cut through the mist and see the clear picture.

And, that’s what building the persona does.

Step #2: Create Content

People get caught up in the cliché things when it comes to digital marketing.

It’s mind-boggling to see what people think digital marketing is; they have perhaps wrapped the idea of digital marketing into PPC and CPM advertising models.

In reality, digital marketing encompasses lots of things such as putting out content, reaching out to the audience, and gaining attention on the internet.

We’re about to explore content creation that will educate you on how the process of content creation paves the way for digital marketing success.

Now, we’ll dig deeper to understand the opportunities digital marketing has to offer.

Some of the essential tools of the digital marketing arsenal are:

  • Content: Content is a valuable piece of information in any form such as text, audio, video, or visual that delivers a helpful message across.

In other words, it could be articles, videos, podcasts, infographics, and pictures that could be used to deliver value to the audience.

The best part of the content is that it gives you leverage, which you’ll learn in the next point.

  • Online Advertising: Isn’t it fascinating that the majority of people who comes across the buzzword “digital marketing” think that it is just about online advertising?

The reality is that online advertising is an important pillar of digital marketing.

Moreover, various online advertising platforms could be used such as Facebook ads, Twitter ads, or Google Adwords to advertise online.

The upside of the content creation is that it allows you to leverage your content to advertise on social media and win the attention of the audience.

  • Search Engine Optimization: Search engine optimization (SEO) is an important phenomenon in online marketing.

So content creation does add two cents in the online marketing of the brands or individuals who put out content on the internet whether it’s articles, videos, or images.

SEO is the answer if you want your content to perform better on the platforms.

The point is that once you have content in your hand, you could use it in marketing in different ways, which is why I can’t imagine digital marketing without creating content.

The whole idea of creating content is that it will help you attract, engage, and convert the prospects into customers.

Step #3: Develop a Strategy

At step three, you have to have a plan to gear up your digital marketing campaign.

When you’ve created content hands down, it doesn’t mean that you’re all set here; there are two important elements of the digital marketing strategy that you need to check off at this point:

  • Selecting the Social Media Networks: Social media networks are compulsory to the digital marketing process. One can’t establish a digital marketing strategy without exerting the power of social media.

So just be sure that your prospective audience hangs out on the platform you’re choosing along the way.

  • Choosing the Online Advertising Platforms: Online advertising was a little different before the advent of social media.

However, it’s a different ball game now.

There is a Facebook ad, which is undoubtedly a favorite option for the majority of digital marketers, but brands continue to use Google Adwords for ads in search and YouTube.

Let’s not forget the advertisers choose to pay where the attention of the end-consumer goes.

Twitter, Instagram, StumbleUpon, Quora, LinkedIn, and Snapchat are also major players in the online advertising game.

These two elements help us determine a better strategy that incorporates the right selection of social media and online advertising platforms.

Step #4: Analyze the Outcome

A digital marketing campaign is incomplete without the insights and results analysis.

Pay close attention to the statistics, and see what’s happening with your digital marketing campaign.

It wouldn’t be wrong to say that one must keep an eye on the lead generation, email sign-ups, social media followers, and content sharing.

Don’t get carried away so much by the ROI.

In fact, experimentation is the answer to that problem. You must experiment, and see what works for you.

The interesting part is that you don’t need excel sheets or special software to analyze the outcome of your digital marketing efforts – the numbers would speak the truth.

If you’re running a Facebook ad, see the number of impressions, click-through rate, and the number of people reached, or if you’re publishing content, see the number of shares and comments, or if you’re publishing images on Instagram, take a look at the likes and comments.

The analysis part, however, shouldn’t be scary at all.

The engagement on social media, email inquiries, and quote requests would ultimately reveal everything.

If nothing seems to work out, then you better hire a professional team of digital marketing experts because you might not want to waste your thousands of dollars on the experiments.

CanzMarketing, for example, is one of the leading digital marketing agencies in San Diego, California.

We genuinely believe in deeply analyzing the campaign results as an essential digital marketing metric.

If you’re juggling with Facebook ads and haven’t been able to pull this off yet, then we might be the team you should be calling right now.

 

Conclusion

We didn’t want to astonish you with a whole heap of technicalities of digital marketing, but instead, the idea was to share the concept of digital marketing.

If your marketing staff just runs Google Adwords, and they think that they’re doing digital marketing the right way, then ask them that why so many SAAS-based companies are putting tons of content on their blogs as well as social media?

We think that it’s time that you embrace that fact that digital marketing is way more than just an online advertising campaign.

What else do you know about digital marketing that could help someone?