The New Year is filled with motivation and optimism.
Businesses set their goals for the coming year and plan how to reach them.
Marketing is often, or at least should be, at the forefront of a business because it is one of the most valuable investments that a company makes.
Particularly, how do you know where to allocate your marketing budget to receive the best return on your investment?
The best way is to compare, consider, and choose.
Finding where most companies allocate their marketing budgets is the first step in determining how to spend yours. In 2018, on average, companies will spend 41% on digital marketing budgets, according to WebStrategies. Although less than half of the marketing budget is spent on digital marketing, it includes anything that is online, such as blog postings, social media management, email campaigns, and paid advertisements. Of this online marketing, search engine marketing captures the largest share of spend.
When looking at how to adjust your marketing budget for 2018, it’s best to see what is growing in usage and what is the most effective. First, we’ll look at which areas of marketing are growing. The percentage of the budget spent on digital marketing is expected to increase from 41% to 45% by 2020, according to WebStrategies. Social media and social media advertising investments, which are projected to represent 25% of total online spending in 2018, are expected to grow continuously until at least 2021. Together, paid search, display ads, social media advertising, online video advertising, and email marketing will account for 46% of all advertising by 2021, Forrester reports. Digital marketing spending will near $120 billion that year.
Moreover, let’s look at what is most effective. Not every company has a massive marketing budget or a large marketing team getting the best return on your investment in marketing is vital if you’re a small business.
Email marketing has been cited as having the highest ROI, followed by social marketing. These are two low-cost ways to reach big audiences. The third-best return has been through SEO, which includes multiple areas that work together. Typically the best way to improve your SEO is to follow blogging basics, like using the right keywords and building out great content. For example, one of the best ways to improve your SEO is to select certain keywords that you want to optimize your website for. Particularly, you adjust your web pages and content around these specific keywords. This allows google to better categorize your content and provide more accurate search results for their users.
For instance email, social media, and blogging, will provide the best ROI for your marketing spend. Specifically, it is important to perfect these actions and tailor them to your specific market.
In assessing what your resources are, seeing what areas are growing, and then allocating funds based on best returns, you will make the most of your marketing budget for 2018. This strategy can be used for large and small companies alike.
Please share your plans for your marketing budget in 2018 and leave a comment below. Then check back often for additional useful content about marketing your business.
About the Author
Derek Minich recently graduated from the University of North Florida with a B.B.A in Marketing and a B.S in Psychology. His primary areas of interest are marketing analytics and marketing research. When Derek is not learning and apply his marketing skills, he goes on hikes with his dog Gunner.