A marketing budget may seem like a luxury and an expense that a small or new business simply cannot afford. The truth however is, that by factoring in a budget for your marketing needs, you are allowing agencies to determine an understanding of how they can help you within your stated budget.
Approaching an agency with a budget will allow the agency to create a marketing strategy that is specific to your brand or business, without the unnecessary stress of you having to turn down their services due to costs. A budget saves both time and money for everyone involved.
Why is marketing important for your business?
Think of marketing as an investment in your business. Have you heard about the marketing funnel? By evaluating your funnels, you can help to widen your marketing strategy and generate more sales, build loyalty and stronger brand awareness.
A carefully planned marketing strategy will help to effectively promote your business to your target demographic, distribute your product or service and help you maximise profits in a competitive field.
Even with a small budget you can still yield results, but the important question here is “what can you afford?”
Smaller businesses may struggle to define a budget in the early stages, so how do you create one that is adapted to prioritise your business?
Listed below are 4 key factors to consider when allocating a marketing budget as a small business.
1- Are you equipped to regularly update your blog content?
In a previous article, we covered the benefits of publishing compelling blog content, but how else can your blog help build awareness of your brand? Did you know that it takes 0.05 seconds for a visitor to your site to form an opinion about your website, determining whether they will stay or leave? Your aim should be to encourage visitors to want to stay on your site and learn more about your services or products. With an average of 5.59 seconds spent per page reading content, it’s vital that the content you publish on your blog is effective and provides the viewer with exactly what they are looking for.
For some of us, writing comes naturally, but for the others, it can be an arduous task. And this is why it is important to set aside marketing budgets especially if you’re looking to outsource your content marketing projects; for without content, what exactly would you be marketing to your audience?
2- Which social media platforms need managing?
Having a presence across all channels can be great, but how effective is it to spread your time and energy across every single one? Will it be Facebook, LinkedIn, Instagram, Twitter, Pinterest, or Snapchat perhaps?
We recommend that you narrow down the channels that can be utilised best to promote your products or services. Reaching out to an agency to manage your chosen social platform(s) is not only cost-effective, but it will also allow the agency to focus their efforts on an integrated strategy to help build your brand awareness.
3- Should you invest in email marketing?
Appearing in an inbox consistently with useful information will help build a trusting relationship with subscribers. 52% of people check their phones within 15 minutes of waking up and 86% will check their phones within the hour.
Greeting your subscribers with helpful information and the occasional promotional email, without spamming them, is one of the ways to nurture your connections. If you’re stuck for inspiration, or need some useful tips, you’re welcome to sign up to our newsletter.
4- Sponsored Features
Creating hype around your business does not need to be limited to your own website or social media. Contact other brands and influencers that cater to your own target demographic. It’s a great way of appealing to your intended customer base, whilst allowing the influencer to create the strategy for you, whether it’s in the form of a social media promotion, a blog post or newsletter feature. It’s a one-off payment that may just fit into your budget.
What is the foreseeable future of marketing?
Last year alone showed an increase in the amount of businesses that allocated a marketing budget. In 2018, B2B budgets made up an average of 11.1% and companies in B2C averaged 16%.
By 2024, the digital marketing budgets are expected to increase from 44% to 54% and according to research from Magna; these are the 3 channels with the highest revenue growth:
- 38% – Social Media
80% of Instagram users follow a business account and 30% bought something they discovered on Instagram, it’s no wonder that social media has become a crucial part of any business strategy and with it; the creation of influencer marketing.
- 27% – Online Video
Consumers are 64% to 85% more likely to make a purchase after watching a video. In fact, live videos will account for an 82% of all IP Internet traffic in 2021, making it a popular digital marketing trend.
- 18% – Search
3.5 million searches are performed on Google everyday. Now you have to ask yourself, is your website search engine friendly? Search engines thrive on fresh content, so by publishing regular and compelling content you will help improve your website ranking in search results.
Consider outsourcing to save money
There’s a multitude of benefits when working with an agency and one of the main benefit is cost effectiveness, when you take into consideration the added expenses of hiring an internal marketing team. Not only are you paying wages, but also the cost of paid time off and the added expenses of buying the necessary software and overheads. This is why 69% of businesses will outsource their projects to a marketing agency, as a means of reducing costs.
Create your marketing budget
A marketing strategy is like a business plan, constantly working on identifying areas for improvement and developing a plan to generating sales or growth. Before approaching any agency, it’s important to come prepared with a budget. Start by creating a list of what areas you need help with and how much you can afford to set aside towards your monthly budget. It may not be an exciting task, but prepare a budget, regardless of whether you have launched your business or not. Look into the expenses for your upcoming year and begin building your budget today to help your achieve your goals.
Have you created your budget yet?
It doesn’t matter the size of your business, what matters is how your brand can be transformed. If you’re struggling with any of these marketing tactics as mentioned above, contact us directly or get in touch through our Instagram, LinkedIn or Twitter. We are here to help!