Maximizing Your Digital Media Budget
The number of digital channels to account for in one’s media budget can be overwhelming. As the number of media channels steadily grow, it can become increasingly more difficult for marketing decision-makers to decide where dollars will be most effectively spent. Every business has its own formula for intended success that includes a proper media budget. This formula comes from trial and error, or as most know it, testing and learning through strategies until the right marketing mix is determined. While this method is best to decipher what works best for your particular business, we can provide some general tips on how small and large businesses can maximize their media budgets.
Form Your Goals
In order to make sure you’re maximizing your budget, you’ll want to establish goals that help clearly define what you’re looking to achieve. Once you know what you want to do and have to do, you can better allocate your marketing budget.
Budgeting helps you keep track of your costs, which then totals into the ROI calculations. In a survey conducted by Sprout Social, 55% of social marketers listed measuring ROI as their top challenge. If you’re not able to accurately measure ROI, then you’ll have a harder time justifying any investments.
In that same survey, they found that 80% of marketers primary goal is to increase brand awareness.
Decide What Type of Budget
There are a few ways you can choose to administer the budget.
- Traditional budget: This is where you start with a sum of money and then allocate amounts to each category. Once a category is depleted, you can’t do anything else in it.
- Flexible budget: This is where category depletion can be fulfilled by another category. Did one run out of money and another category has extra to spare? Move it over.
- Zero budget: This is when you start every category with zero at the beginning of each budget planning cycle. You increase the amounts per category, justifying the cost every time.
Whichever way you decide to form a budget, deciding on how to allocate the budget can be tricky. LinkedIn Business suggests, “70/30 split: put 70% of your budget on campaigns that drive bottom-funnel conversions or leads, and 30% on campaigns that drive top-funnel awareness or engagement with your content. This strategy helps you generate revenue while you’re learning what works”.
Factor in Content
Content is the heart of social media. It’s what keeps users coming back to scroll endlessly for hours and it takes a lot of time to produce. Depending on how often you post to social, you will need to factor in how you will supply all this content. One way to alleviate the costs is to incorporate a user-generated content strategy. USG is a great way to keep your content fresh as well as build an online community with users. It’s easy and cost-efficient.
Add in Advertising
For multi-channel companies, you’ll need to decide how much to provide for each channel. If Facebook is your biggest channel, it would make sense for you to put more of the advertising budget towards that. The average Facebook ad cost per click was $1.72 across all industries but it could be as low as $0.45 per click if you’re in the apparel industry. The average Instagram ads cost per click is around $0.50 – $1.00, with e-commerce ads being as high as $3.00.
At the end of the day, the best way to ensure you are maximizing your budget to achieve best results is to test and analyze everything. As mentioned in the beginning, trial and error is the base of it all. Keep track of the data and see what’s working for you and what isn’t.
If your company is looking to accomplish it’s digital media goals with a solid budget, contact TriSpark Media today. Our team of dedicated marketers can help you create a media budget that works for you.