“How do I build out a successful digital marketing budget?”
That’s the question that every retailer asks when starting campaigns, evolving strategies, or looking down the road in preparation for growth.
When working with retailers, we get this question all the time, and while you may be hoping for a full-proof solution or formula, unfortunately, there is no standardized answer. But, we have compiled some points for you to consider, which should help you determine what’s right for your business.
Here are a few tips on how to build a successful digital marketing budget:
Look at your total marketing budget and allocate anywhere between 20-50% towards digital channels. This allocation should at least get you going and allow you to start testing the investment.
Start with your goal in mind. Map out a sales goal, KPI, or specific outcome you’d like to accomplish. Then come up with a dollar amount you are willing to invest to achieve this goal. This KPI will likely take several iterations, but it gives you a starting point and allows you to track whether to increase or decrease your budget to achieve the outcome over time.
|Example Goal||Sample Channel Mix||Variables|
|Brand / Product Awareness||Display / OTT / CTV / YouTube / Social||Geography / Audiences / Product Mix|
|In-Store Traffic||SEM (Google or Bing Search)||Geography / Competition / Product Mix|
|Ecommerce Sales||Google Shopping Ads (PLA’s) / Email / Social||Geography / Website Functionality / Product Mix|
|Website Traffic||SEM (Google or Bing Search) / SEO / Social||Website Functionality / Geography / Competition|
If you are still wondering whether you have the proper budget or channel mix, feel free to reach out and ask us directly!
Our team of expert digital strategists at Phelps Digital helps large and small retailers work through this situation daily. By leveraging data and years of experience, we can provide objective answers and forecast outcomes, giving you the confidence and rest assured to continue investing in growth for your business.
Discover more information and resources to help with your digital marketing HERE.