Setting your digital marketing budget can be a bit tricky—you need to determine your overall budget, decide how much of that should be devoted to digital marketing, and then decide how to divide up your digital marketing budget in the most effective way.
One of the most important decisions you’ll need to make is how much of your digital marketing budget should be spent on DTC marketing efforts. Here’s what you should know.
The Importance of DTC Digital Marketing
Used correctly, digital marketing can help you reach your target customers in the most effective way. Instead of using digital marketing to send out a generic message, you can use it to get a customized message directly to your ideal target audience.
For example, if your new drug would be of interest to young moms, DTC marketing helps you reach them specifically instead wasting your budget sending your message to middle aged men, teenagers, and others who aren’t in your target demographic.
Creating Your Budget
Before you determine your digital marketing budget for 2016, you’ll need to do 3 things.
- Set your marketing goals for the year. Do you want to introduce a new drug, build relationships with new customers, establish yourself as an industry authority, increase sales, or build brand awareness?
- Analyze last year’s campaigns. What did you spend your marketing budget on last year? What was successful? What fell flat? In general, it is best to follow the 80/20 rule—spend about 80% of your budget on things that worked well in the past and save 20% for new things.
- Research your target audience. In some cases, your campaign will be more successful if you send email newsletters and post links on Facebook. In other cases, you’ll need to use Twitter and PPC advertising. Knowing who your target audience is will help you hone your message and find out where to share it.
The Digital Marketing Budget Calculator
Once you’ve followed the steps above, you’re ready to look at the specific numbers. Leadgenix has created a useful tool to make setting your budget simpler.
The digital marketing budget calculator is easy to use—simply answer four basic questions. The results will help you decide how much to spend each month and how to divide that amount among your many efforts.
Once the calculator has determined how much you should spend on digital marketing each month, it will tell you how to divide that budget between four important areas—SEO, PPC, Social Media, and Content Marketing.
When you are marketing directly to consumers, it is essential to have a strong social media presence and high quality content, but you’ll still need to use some of your digital marketing budget for SEO and PPC. The calculator can help you evaluate your specific goals and divide your budget up in a way that will help you use your budget well.
The digital marketing budget calculator can help you determine what to spend and where to spend it.
What will you use your marketing budget for in 2016?
Author Bio: Adam Fifield is the head of content marketing at a digital marketing agency located in Provo, UT. He’s written countless webpages, articles, blogs, and whitepapers for a wide range of industries, and loves to dig deep into content strategy.