As a small or medium-sized business (SMB) owner, setting a digital advertising budget can be challenging. On one hand, you want to invest in marketing to reach new customers and grow your business. On the other hand, you don’t want to overspend and risk financial strain. So, how do you strike the right balance?
First and foremost, it’s important to understand your goals and how digital advertising can help you achieve them. Are you looking to increase brand awareness, drive traffic to your website, or generate leads and sales? Once you have a clear understanding of your goals, you can determine how much you are willing to spend to achieve them.
Next, consider your target audience. Who are you trying to reach with your digital advertising efforts? Understanding your audience will help you determine the channels and tactics that will be most effective for reaching them. For example, if you are targeting young people, you may want to focus on social media advertising. If you are targeting professionals, LinkedIn might be a better choice.
Another factor to consider is your budget itself. How much can you afford to spend on digital advertising? Keep in mind that your budget will likely vary based on the size of your business, your industry, and your goals. As a general rule of thumb, it’s a good idea to allocate a percentage of your overall marketing budget to digital advertising. The specific percentage will depend on your industry and target audience, but a good starting point is 10-20%.
It’s also important to regularly review and adjust your budget as needed. Keep track of your results and analyze which tactics are working and which ones are not. If you find that certain tactics are not delivering the results you want, consider shifting your budget to more effective tactics.
In summary, setting a digital advertising budget requires careful consideration of your goals, target audience, and budget constraints. By understanding these factors and regularly reviewing and adjusting your budget, you can effectively allocate your resources and achieve your marketing objectives. At Magnetiq, we help our advertisers with our budget suggestions feature that understand your business and industry and suggests you a budget accordingly.
