In this article, I will give you some tips on how to allocate a budget for your digital marketing campaign. Budget allocation can be mainly:
- To reach new audiences – create branding and reach campaigns to touch base
new audiences, let them know you and your products - To engage – engage your audiences with content, educate them.
- To get leads – get in touch, get their details.
- To nurture – build trust for your products, clear their doubts.
- To convert – give them an offer and convert them.
- To remarket and retarget – remarket to upsell, retarget to cross-sell
- Let’s go into detail about all the points.
How/why to allocate your budget for reaching new audiences?
Every business needs to reach out to new audiences and constantly grow.
We should invest in reaching out to new audiences because:
Customers leave us, and they make a hole in our revenue.
- Business needs to sustain – your business needs constant revenue to sustain
- Business needs growth – sustaining is not enough, and unless you scale, you will fail.
You need to constantly feed your top of the funnel to maintain your business’s steady growth and revenue.
Ideally, many businesses spend 10% of their marketing budget to reach new customers.
You should spend the budget on branding and reaching out to new segments.
How/why to allocate your budget for engaging audiences?
Engagement is important, and before we pitch the sales, we must engage the target audience.
- Present the solution – show how your product/service is going to solve their problem
- Show comparison – show how it is superior to your competitors.
- Ask feedback – know how they feel about your product or service by asking them feedback.
- Show them benefits – show the USP and benefits so that your target audience is mentally ready for your product.
You need to constantly engage our audiences to create a desire for the product.
Ideally, many businesses spend 15% of their marketing budget to engage their target audiences.
How/why to allocate your budget for lead generation?
Lead Generation is important, and everyone needs leads to generate a customer base.
Leads come in different shapes and sizes, some of them are MQL, and some are SQL.
- MQL: Marketing Qualified Leads MQLs are essential to build a continuous business flow for recent and coming days. We need to have MQLs to convert to SQLs and take care of our revenue forecasting.
- SQL: Sales Qualified Leads SQLs convert fast as they have purchase intent and urgency. We should generate SQLs to meet urgent revenue targets.
Ideally, many businesses spend 50% of their marketing budget to engage their target audiences.
How/why to allocate your budget for lead nurturing?
- Lead nurturing – not only means convincing the leads on but also means:
- Clearing their doubts – educate and provide them all the query and doubts regarding our products
- Listening to their objections – we need to constantly remove their NOs and convert them to YES.
- Pitch different offers – every lead is different, and every lead has a different winning formula, segment, and create various offers for them.
- Build trust – show case studies and testimonials reviews so that they incline towards you.
Ideally, many businesses spend 15% of their marketing budget to engage their target audiences.
How/why to allocate your budget for conversion & remarketing?
Conversion means taking the audience from the middle of the funnel to the bottom of the funnel, not always sales.
How to convert:
- Social proof – show them social proof by testimonials, results, etc. They will convert.
- Discounts – discount psychology works sometimes, and some segments of customers wait for this; this works!
- Ratings and reviews – good ratings and customer reviews always sell; use that too.
Businesses ideally use 15-30% of the marketing budget to convert their already engaged audiences. Here, don’t confuse with conversion campaigns in FB or Google!
How to remarket and retarget your target audience?
Remarket is mostly covered in the nurturing section we discussed earlier in the series. It’s passing on relevant messages regarding the same product or service to convert.
Retarget is to let your already engaged audience know about other products and services you offer. It can upsell, cross-sell, or down-sell too!
So, this was all about how you can allocate budget for your digital marketing campaign.
You may also like to read – How To Plan Your Digital Marketing Strategy?