How much does it cost to get Digital marketing consulting and how much it costs for a company and or a group? We will show you how to invest in Digital marketing and what to pay.
What exactly does digital marketing mean?
Above all, we need to determine what parts this cost relates to. The answer is simple, any activity that your brand and business does in cyberspace and on the Internet is digital marketing or content marketing. These activities range from website design, video making and content production to click advertising, influencer marketing and expert manpower.
Big business
The first factor influencing budgeting is the size of the business. Naturally, the larger the collection, the larger the digital marketing budget. But since small and large is a relative concept, it is better to consider our criteria on a percentage basis. If you want to maintain your position in the market and not lose sales, it is recommended to invest 5 to 7% of the company’s profit in this area. But if you are planning to expand and want more market share, you should consider this number between 7% and 15%.
Business life
Another factor to consider in your financial planning is the life of your business. The fewer years you work, the more money you need to spend. If your brand is less than 5 years old, it’s a good idea to increase your digital marketing budget by up to 20%. A large part of this 20% will be the share of creating your brand identity and awareness. After this period you can execute the same suggestions as in the previous paragraphs.
Business Type
Your brand audience and type of activities play a key role in determining and budgeting. Naturally, the marketing plan of a B2B company, such as shipping, is quite different from a B2C company, such as a brand of chips or shoes. According to Web Strategy, in 2020, companies providing direct customer service spent the largest amount of budget (18.9% for a total marketing and not just digital marketing) in this sector. Education is second with 12 percent, and financial institutions, insurance, media, health, technology, transportation and energy spend about 9 percent on marketing. At the bottom of the table are consulting, retail, mining and construction.
For a simpler calculation, if your product is B2C and a commodity, add 2 to 4 percent to your digital budget floor. If you operate a B2B service, you can reduce your budget by up to one percent.
Digital share of total marketing budget
If we want to examine the ratio of digital marketing budget and all marketing costs of a company, we must take into account all the factors mentioned and, of course, many other indicators. These numbers are highly dependent on businesses and circumstances. For example, in the past year, due to the outbreak of coronary heart disease in the world, the allocation of funds in the field of marketing has changed dramatically, and online education has experienced unprecedented growth.
However, if you want to simplify the task to reach a certain estimate, you can consider the digital budget as 50% of the total marketing budget. The more your income and work depended on cyberspace and the more manpower you used in this sector, the increase this number.
Starter businesses
If we want to turn the amount of investment in digital marketing into a profit, what about a brand that has not yet entered the market? If you are in this situation and you want to start a new business, you need to consider your goals. Another difference is that your planning for the first years may be very profitable, so the percentage should be based on budget and not profit. For example, in B2C service companies, 20% of the budget is spent on marketing, but this amount is 11.9% of the profits of these companies.
Your budget is dedicated to Digital marketing cost and fees
Your audience, activity, and characteristics may also differ from your nearest competitor for Digital marketing cost and fees. The same amount cannot be considered for any two sets. This is where past experiences come in handy. For this reason, you should record in the most detailed way possible all the activities and amounts you spend in this area and make decisions in the coming years based on this information and time conditions.
In this statistical documentation, observe the manpower, the revenue generated from cyberspace, directly and indirectly, the costs of infrastructure development, the budget of each of the methods and formats provided, the purchase of media and the real value of your brand.
Close your professional budget
For Digital marketing cost and fees, what you have at your disposal are income, profit and total budget. It is best for an experienced expert to accurately measure the appropriate marketing budget and digital marketing. Many of the figures in this memo are for the whole world or the United States, which publishes more accurate statistics in this area. The economic, social, cultural and political conditions of any country may displace these numbers significantly.
A very important point in digital marketing budgeting is to allocate and distribute this amount proportionally in different areas. How much budget should be spent on building and developing infrastructure? What ratio should we give to the purchase of private media or in which area of content marketing should we spend more? How much do we pay for SEO or how much can we spend on Instagram?
Digital marketing total costs and fees
In addition to answering these questions, professional calculations and budgeting are a set of different formulas and charts that a professional can handle. This brief note can only provide an overview of your plans. but this is digital marketing cost and fee example:
Search engine optimization (SEO) $300 – $10,000+ per month, Pay-per-click advertising (PPC) 3-15% of monthly ad spend, Email marketing $200 – $3,000/month or $0.1 – $0.5/email ,Social Media marketing $150 – $8,000/month, Website Design $2,500 – $100k.
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