An upfront question: “How much should I allocate on Internet marketing?”
Quite frankly, there is no specific benchmark on how much should you spend on your marketing scheme, as these numbers are basically dependent on your company’s revenue, as well as the entire budget plan, marketing requirements, and the much needed campaign push for a certain product or service to be recognized
Take for instance, as reported by Business Insider, Google’s average internet marketing funds allotment in 2014 only plays at a fraction of 15% of its total budget on digital ads. Meanwhile, another 2014 marketing report conducted by the CMO Survey states that most companies allot an average of 10.9% of their overall firm budgets.
Still, no matter what the percentage these reports show one company is different from the other, and that includes marketing strategy. That’s why it still remains a big question mark on how much one company should spend on Internet marketing. Here are some points to ponder that may bring light in gauging the benchmark of your marketing budget:
Take a number
Based on these recent reports, it goes to show that for allocating a budget for your company’s marketing endeavors, a conservative 8% to 10% will already scratch the surface. However, keep in mind that this percentage is mainly just for small business owners, as well as for companies that are just about to take the digital marketing plunge. As for the more experienced businesses, they usually spend around 12% to a whopping 30% on marketing budget.
Test the Waters First
As said earlier, determining the exact amount for marketing expenditures is nearly impossible, so it’s not a mortal sin in the business world to test the waters. But of course, by experimenting, expected analysis of potential and expected output should be conducted. Numbers written above are not constant, meaning your budget could either increase within the next 6 to 12 months. If your business, and marketing strategy for that timetable are lucky enough, then chances are, it could go otherwise.
Know the “Caliber” of your Business
Think of it this way; the more your brand needs to be advertised in order to reach its market, the higher the price your marketing budget will be. Jeff Bezos once said, “Advertising is the price you pay for having an unremarkable product or service”. Truth be told, if the product or services that you’re offering is “less remarkable” compared to your competitor, then aside from thinking about revamping your brand, might as well invest in a reliable marketing firm that to give a much-needed boost to your business.
What’s the Firm and its Packages
Every successful Internet Marketing firm has its own pricing model. Packages, if you may. These pricing models usually have their own distinct “combos” based on the firm’s offered services (e.g. hourly vs. project based vs. per monthly), although at times, these packages can be flexible, depending on the negotiation, and of course, as said many time, the budget. It is recommended to check these models to determine how much can you allocate to your marketing funds.