How Much Should I Spend on Marketing in 2023?
17 Jan, 2023 |
Impact Group Marketing
, Digital Marketing
, Target Audience
, Social Media
, Multi-channel Marketing
, Business Goals | Digital Marketing | 0 Comments |
Wondering how much you should spend on your digital marketing budget? You’re not alone – it’s a common question for companies big and small.
Digital marketing is one of the most important investments you can make to grow your business. It provides numerous opportunities to reach your target audience at every budget point. And many different channels make up the digital marketing landscape – from social media posting to paid advertising.
So, how do you determine an effective digital marketing budget for 2023?
Why digital marketing is essential
First, let’s look at why digital marketing is crucial for all businesses. In 2020, the average time people spent consuming digital media in the U.S. was 470 minutes – seven hours and 40 minutes per day. In 2023, this number is expected to increase to over eight hours per day.
So, if you want to stay relevant, you must be willing to invest in digital advertising.
The average cost of digital marketing
It’s easier than you think to set a final digital marketing budget. And understanding average spending can help you decide if your budget is realistic.
Every business is different, and multiple factors come into play – including business goals, industry, and target audience. According to the 2022 Gartner CMO Spend Survey, the average marketing budget has jumped from 6.4% to 9.5%.
Businesses under five years old typically spend 12-20% of their revenue on marketing. You can expect to spend up to 56% of your marketing budget on digital channels, and social media advertising makes up about 25% of most digital marketing budgets.
Remember, a small budget doesn’t mean small results. What matters most is how you allocate your digital marketing dollars.
Factors to keep in mind
Average costs are a great starting point when creating your digital marketing budget. But you also need to consider several factors before setting up your budget:
1. Age of your company – If your business is less than five years old, plan on spending a more significant percentage of your revenue on building brand awareness.
2. Target audience – You need to know your target audience before creating a marketing strategy. Where do your customers spend their time online? You can create a strategic marketing plan once you know who your audience is and where to reach them.
3. Social media – Social media is extremely popular with consumers and is a significant factor in digital marketing. But instead of advertising on every social media platform, learn which channels your target audience uses so you can effectively communicate with them. Once you know which channels to focus your advertising dollars on, you can create engaging and relevant content for your audience.
4. Multi-channel marketing – When you embrace multi-channel marketing, you can effectively and efficiently communicate your products and services to your target audience. Studies show that multi-channel marketing strategies provide excellent ROI and that multi-channel customers spend two to five times more than customers who buy on a single channel. Other benefits include:
- Increased engagement
- Expanded reach and frequency
- Increased brand awareness and recall
- More impactful messaging
Read More: 5 Effective Marketing Strategies to Grow Your Small Business
How much should you spend on digital marketing in 2023? Enough to achieve your marketing and business goals. Even during uncertain economic times, a strategic approach to digital marketing will deliver positive results.
At Impact Group Marketing, we are passionate about digital marketing. Our solutions and recommendations are based on over 25 years of experience in website development, search engine optimization techniques, and social media strategy. As a Google Partner, our team is certified in Google Paid Advertising and Google Analytics. We’ll work within your budget to find the right solutions to reach your goals! Contact us today, and let’s talk marketing.