Over the past couple of weeks we’ve been speaking alot about return on investment and how it’s important to your SME. So while we’ve been talking alot about the technicalities of making money – we thought we should also go back to the basics of financial business management. Today we’re going to be exploring digital marketing budgets and how you should calculate and determine them successfully. After all if you’re pouring money into your digital marketing campaigns but seeing no return then you need to start re-evaluating budgets.
First of all, you need to be honest with yourself. How much can you spare to go towards your digital marketing budget? You have to come up with a sum that you’re willing to gamble and not make a return on because unfortunate not every campaign will have a positive outcome. Similarly, you shouldn’t be afraid to spend money on marketing activities, like Google AdWords and social media. When done correctly – they could actually end up making you more money than you think. It’s all about having a healthy balanced mind set when it comes to deciding on a budget.
They use clean data
When you’re deciding on a budget it’s important to base it on past campaign’s performances. However, the mistake that SME usually make here is that they weren’t measuring the correct data in the first place to determine a campaigns performance. This is why it’s always important to have clean, accurate data to look back on when deciding on next years budget. For example, if you sell t-shirts online, you should be using your eCommerce analytics software to monitor the source of your sales – was it social media, organic search, referrals or a direct hit? If they were coming from some of your marketing channels – which of those channels did they come from and how much did they spend?
They measure it against KPIs
Similar to the above point you have to make sure that your calculating your budget whilst taking other key performance indicators into consideration. For example – across all of your online marketing channels, how much money did your SME make? If you don’t know the answer to this we suggest you take a lesson or two in Google Analytics. By using Google Analytics you can actually set a monetary value to a conversion then see how these conversions were spread across the different channels.