How to Properly Allocate Your Digital Marketing Budget in 2025
Many small business owners are hesitant to spend money on digital marketing, especially when the money they’ve already invested isn’t paying off. With so many different types of digital advertising, choosing the right approach can be overwhelming. This article will give you some insight into how to properly allocate your marketing budget.
So how much should you spend? Typically, marketing budgets are 5–8% of a company’s sales. In 2023, half of that was spent online.
Success in digital marketing brings huge profits, which is why it is very important to spend your advertising budget wisely.
Search Engine Optimization (SEO)
Search Engine Optimization (SEO) is a critical digital marketing tool that no business should neglect. When done correctly, it can increase your website’s visibility, drive traffic, and attract potential customers. Easy to say, hard to do.
This is where your resource’s external analytics services come in handy. They offer a variety of tools that make implementing your SEO strategy easier, including:
- keyword ranking;
- most visited pages;
- backlink profile;
- website audit;
- competitor analysis.
This is an extremely useful tool to add to your arsenal. Using it, you will be able to collect all the necessary metrics and then create a marketing plan.
Content is very important for SEO. Nowadays, companies spend about a third of their budget on it. So what should your content be? This is where SEO analytics services come in handy again. You can analyze your keywords to identify content gaps and fill them. See what your competitors are doing well and start emulating them. Great content alone won’t bring people to your site, but it will be a catalyst for improving your SEO.
Quality content will make people more likely to link to you. Backlinks are the lifeblood of your SEO. A good definition for them comes from marketing service Moz:
“Backlinks to your site are a signal to search engines that others look for your content.”
The more backlinks your site has, the more likely search engines are to recognize it as authoritative in a particular area.
Backlinks are not easy to obtain, but they are very valuable. Using a guest blogging strategy alongside your content strategy is a good way to build more of these links.
Think about what your potential customer needs. What are they looking for? This is called search intent and is a fundamental factor that helps you target your content correctly.
Content is one of many factors that make up a successful SEO strategy. Search engine optimization is not a one-time event, but an ongoing process that requires time and effort. It is a difficult task, but the key is to not rest on your laurels and invest in it.
Social media
Social media should play a key role in your digital marketing strategy. It is an important means of connecting with customers and offers tools for advertising products and increasing brand awareness.
It is necessary to identify the target demographic and then use the right social media platform to attract them. For example, over 90% of people aged 18-30 use YouTube, while only 80% of them visit Facebook.
Create standout images to promote your product. A recent study found that more than half of Gen Z and Millennials have made a purchase after seeing a social media ad.
Using video is also very effective; today, 81% of companies use video content as a marketing tool. It is a good way to increase traffic and increase the likelihood of attracting potential customers. In 2023, about 82% of all Internet content consisted of video.
The question is how exactly you will use the video. There are many simple and relatively inexpensive tools. For example, the platform biteable is a great starting point, especially if you have a limited budget.
Now start creating.
Banner advertising
Don’t make the mistake of thinking that banner ads are a thing of the past. They are not. Even though their click-through rate (CTR) has dropped, they are still a highly effective digital marketing tool.
Banner advertising is a fantastic way to build a visual brand image. It showcases your company name, logo, brand colors, and tagline.
This is a great opportunity to attract the attention of your target audience. With tools like AdRoll and ReTargeter, you can increase the effectiveness and ROI of this promotion. There are many options for where to place your ads and what demographics to target. This is an important tool in your digital marketing arsenal.
Pay-per-click (PPC) advertising
With the PPC model, you only pay when your ad is clicked. If no one clicks on your ad, you don’t lose a penny. You can think of it as buying views and visitors to your site, rather than organically getting traffic through SEO.
Pay-per-click advertising is like a faucet: you can choose when to turn it on and off. You get freedom of action when implementing a campaign and can easily adjust budgets. It is also worth knowing that a click-through rate (CTR) of 4-5% is considered successful.
It’s important to understand what keywords you’re targeting to ensure that your ad is seen by the right people.
When choosing keywords, you should keep in mind that the higher the search volume, the more expensive the advertising. With a limited budget, it is important to find balance. A well-chosen strategy will allow you to launch a successful campaign using keywords with a lower search volume.
Email Marketing
It’s the least sexy, but incredibly important component of your digital marketing arsenal. Emails drive awareness and sales. In fact, email has a 4,200% ROI, so when done right, it can be incredibly effective.
What good are emails if you don’t have a list of addresses to send them to? That’s why you should actively collect the contacts of your site visitors. Unfortunately, the best way to do this is with an annoying pop-up.
There are different ways to make pop-ups less annoying. For example, you can make it appear as a sticky bar at the top of the page or make it appear only after a certain amount of time. Experiment with different types of pop-ups and see which one gives the best results.
Images and videos work well in emails and have a higher CTR. It is important to create meaningful and interesting content – this will not only increase engagement, but also improve SEO.
Conclusion
The list provided is by no means exhaustive. However, it includes the most tried and true promotion methods for small businesses. By using them, you will be able to use your digital marketing budget most effectively. Otherwise, you risk wasting money and not seeing a noticeable return on investment.