Budget and ROI Management for Digital Marketing
Budget planning in digital marketing takes companies from their current position to an even more effective position. Thanks to good budget management, companies will get valuable results from the digital projects they create. If proper planning is done, companies can achieve the desired success at the end of the project thanks to effective budget creation. Thanks to a good marketing budget prepared before the projects, managers can have an idea about the functioning of the project.
When determining a digital marketing budget, factors such as a company's digital marketing goals, target audience and strategies should be taken into consideration. Additionally, factors such as competitors' budgets, market trends, and the current economic situation should also be taken into account.
Tips for Creating an Effective Digital Marketing Budget
One of the first steps when creating an effective digital marketing budget is to create an estimated value of the costs of digital marketing activities.
Determining Marketing Goals:
These goals can be in different areas such as sales increase, customer acquisition, brand awareness. Marketing objectives are measurable activities that determine what a company aims to do with marketing. Setting marketing objectives is important for the success of a company and helps determine other functions of the company and is used in determining strategies. It is necessary to define the general goals of the company, analyze the current marketing situation, define the target audience, determine the goals, and make the goals measurable.
Determining the Target Audience:
To define the target audience, the purpose of the brand must first be considered. Then, it decides who it wants to reach for this purpose and marketing strategies are created accordingly. Defining the target audience correctly ensures the correct use of the marketing budget. Knowing the target audience correctly is as important as determining the audience. After determining the purpose of the brand, analysis of demographic data of the target audience, determination of habits and interests, analysis of customer behavior, and analysis of competitors should be carried out.
Determining Marketing Strategies:
Determining the marketing strategy is one of the most critical stages, because it is the step where we start to take action as a result of the research we have done before. After determining our goals, determining who we are trying to reach, and knowing the market we are in, we can start determining marketing strategies with the data we have.
Determining the Budget Amount:
Determining the budget amount depends on many factors such as the expected return of the brand and the size of the brand. The budget allocated for marketing may increase or decrease depending on the competition in the market. Keeping a flexible budget may not be possible for most brands. It should be decided to use a flexible budget, taking into account the advantages it can provide us. By making cost calculations, the approximate budget amount can be estimated.
Budget Tracking and Control:
It is important to follow the budget in marketing activities. Checking the budget in detail helps us prioritize correctly. We can develop effective strategies with correct prioritization.
Measuring return on investment (ROI)
Return on investment (ROI) is a simple measurement that can provide information about your potential profit on a particular investment. ROI is best used to compare the initial cost of two different investments and to evaluate the profitability of past or future investments.
The first thing to consider before investing in any category is the return on investment. If you know that an investment is profitable and provides a higher return on investment, you should invest in it.
To calculate ROI effectively, you can use the following ROI formula:
Net Income / Investment Cost x 100 = ROI
Another effective formula for ROI calculation is as follows:
Current Value of Investment – Cost of Investment / Cost of Investment = ROI
Advantages of Using ROI
- Eliminating unnecessary expenses.
- Maximize your chances of success.
- Providing permanent results.
- Get yourself comfortable.
- Manage your workspace and organize your desk.
- Adjust the work/life balance.
- Keep In touch with your co-workers.
