How to Set & Manage Your Marketing Budget 

Marketing budgets are becoming an increasingly important part of acquiring customers for companies. Customers are constantly making purchasing decisions online. With a properly defined marketing budget and results tracking, you can reach customers online at the right time and through the right platform.

In this way, your marketing campaign will attract more potential customers to your website and ultimately more contacts and sales. So, it is high time you establish a marketing budget every month and monitor its results.

Marketing budgets are investments expected to produce results.

Digital marketing allows you to track results daily, even if your company only spends a small amount on marketing. You should always measure your business’s results, as well as the channel from which your results originate. 

Below is an image of Google Analytics, which is also a free tool for your business. The image will help you identify the most productive marketing channels and set your marketing budget in the future based on the results.

From the image, you can see which channels are currently driving most visitors to your website. For the client in the example, customers come from the largest to the smallest of these channels:

• Social media platforms
• Google organic or free traffic
• Paid advertising, for example, from Google
• Directly to the website by typing in the browser’s address field, for example, https://kublamarketing.com/.

How should you allocate your marketing budget?

From the illustration above, we can see that paid traffic is driving up to 19% of the customers to the company’s website. It is also worth looking at the number of contacts per channel. 

So from the above picture, we have identified the traffic sources and their share. Still, it is also essential to check the number of contacts per channel, and this information is also available in Google Analytics, completely free of charge for any business.

The “Conversions” section on the right-hand side of the image above shows you the number of contacts per channel. This means that the “Referral” channel is the most profitable for the company in question.

We would be happy to help you find out this information for your company free of charge. In general, this is a quick procedure, but you may find the images above confusing if you do not use Google Analytics daily. 

If you would like help finding out about this, please do not hesitate to ask. Experts can sort through the data quickly, and we’ll be glad to assist you.

Why is it important to find out which marketing channel is most profitable?

It’s easy to set a marketing budget for digital marketing channels if you know the most profitable channels in advance. For example, if all the leads your business receives come from Google’s paid search advertising and your salespeople say that the leads are of high quality, then it’s worth investing more in this channel. 

However, these quality leads can also come from social media channels or organic traffic from Google to your company’s website. This will come out in the analytics so that you can invest in the right media. 

You can drain your company’s marketing budget into an unprofitable channel if you don’t know this, and you’ll have to constantly explain to your department why it’s important to increase your marketing budget. 

On the other hand, if you can show that the marketing budget is allocated to a profitable channel that generates leads, then others will see the value in increasing the budget.

Make sure your marketing budget is up to date every month.

Check your company’s marketing budget every month to see if your digital marketing channels are achieving your specific objectives. It’s a good idea to review your channels regularly and set up a monthly report for your business to go through with the appropriate staff. The results generated by your marketing team should grow and evolve each month.

Below is an example of a Google Ads report. When running Google Ads, it is essential to track how your marketing budget is performing. The following are the most important things to monitor when it comes to Google advertising.

• Cost of advertising
• Your website’s click-through rate
• Conversion rate, i.e., how many out of 100 people contacted your company?
• How many people saw your ad?
• How many people who saw your ad clicked on it?
• How much does one visitor to your website cost you?
• What was your ranking on Google’s first search page?

Below is an example of a social media report. Setting a marketing budget based on the exact results of social media advertising is also a good idea. To monitor social media marketing, take a look at:

• The cost of advertising
• Coverage - how many different people saw your ad?
• The number of impressions - how many times in total did these people see your ad?
• Frequency - how many times have different people seen your ad (on average, in this case, 1.8 times)?
• Click-through rate - how many people have clicked on your ad (likes, shares, comments, etc.)?
• Clicks to the website - how many people came from your ad to your website?
• E-commerce revenue - how much have your ads generated in sales for your business online?
• Return on ad investment- how many times your marketing investment has been returned?
• Contact - how many contacts have you received from your advertising?

How to proceed?

Setting a marketing budget for digital channels can be difficult if you’re just starting out in digital marketing. Together, we can look at where your customers are coming from and help define your marketing budget. 

Additionally, we can use the tools our company uses to find out which channels are the most profitable for your business to acquire more customers. 

Feel free to ask for help, and let’s go through your business and define a marketing budget that works for you.

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