How to Get The Most Out of Your Digital Marketing Budget

Invest in Marketing for Your Business

 

Getting the most out of your marketing initiatives starts with understanding what your budget should be. Marketing isn’t an expense—it’s an investment, one that drives your sales. Without marketing, you won’t reach new potential customers, and that could mean lower sales. But how much should you invest in marketing for your business?

Your marketing budget depends on many factors:

As a rule of thumb, B2B companies should dedicate 2 to 5% of their revenue to marketing, while B2C companies should spend 5 to 10% of their revenue. B2C companies should invest more into marketing because they need to focus on more marketing channels to reach a variety of customer segments. Also, it may depend on if you are a new company or a well-established one. New companies need to spend more because their product or service isn’t known to the market yet.

Marketing should be a major focus of these young companies; not only does it bring in new customers and leads but establishes the brand in the industry.

What if sales are slowing?

Some companies may experience a drop in sales and cut their marketing budget, causing their sales to decline even further. Since sales might have dropped, the idea is that cutting marketing costs will provide the money they need to stay in business. However, cutting back on marketing expenses could do more harm than good: it could cause your competition to overshadow you, decrease the communication between your business and your customers, and you could see a large decrease in business overall. Therefore, if you see sales slowing, it might be the right time to increase your marketing budget—particularly if it’s a slow economy and other businesses are cutting back on their marketing.

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