There is no longer a question of whether you should use digital marketing platforms; the question now is how do the realities of modern business change the portioning of your overall marketing budget.
What is Digital Marketing?
Digital marketing is a catchall that encompasses all types of electronic media, including Internet advertising, mobile website marketing and digital signs or billboards. Internet marketing is a subset of digital marketing, and it has the broadest range of advertising venues, including:
- SEO optimization
- Social media platforms
- Web sites
- Email marketing campaigns
- Banner placement
- Mobile marketing
Of these marketing platforms, mobile marketing is the fastest growing, in both use and development. In 2014, mobile marketing grew six times faster than traditional Internet marketing, a trend that is expected to continue as the technology evolves and more businesses and consumers make the switch to commerce on the go. Where web designers and companies focused on catering to a quality web experience in the past, they are now focusing on mobile marketing stability and cross-platform intergration by addressing the logistical and visual problems associated with mobile use from a user and developer standpoint. This has led to a three-fold trend of offering a better moible experience for consumers, a shift in marketing to emphasize mobile content over static content and adopting better and safer methods of processing online financial transactions.
How This Affects Your Marketing Budget
No matter how how trends like digital marketing and business globalization evolve, the principles of budget development remain the same: taking your available advertising dollar and allocating it to maximize your ROI.
In electronic marketing, two factors decide budeget allocation: your overall web traffic and the type of business (i.e., whether you have a brick-and-mortar store that uses e-marketing as a suppliment to traditonal marketing, or you have an eCommerce-only website). Budgeting itself should be considered in terms of short-term and long-term planning. Obviously, short-term planning pays more immediate dividends in terms of ROI, but long range marketing requires more foresight in planning and patience while waiting to see results.
A good formula for budget allocation is 30-20-40, which is the maximum percentage of money devoted to the three main components of electronic marketing: SEO optimization, social media marketing and SEM. The type of business you own dictates, in part, which of these platforms will work best for your business. For example, tangible products and niche services are best served by social media exposure in the beginning.
Flexibility is essential to the success of digital marketing expendures. Analyze data and customer feedback regularly to see what’s working and where your efforts are inneffective, and retool your strategy accordingly.
Whenever there’s a new marketing trend, it’s tempting to jump on the bandwagon and put all of your efforts into one platform. However, smart marketing requires intelligent and ongoing analysis and a plan that’s encompasses all marketing media, yet is flexible enough to be altered as circumstances require, without a major expenditure of money or time.