How Much of Your Revenue Should Be Invested into Digital Marketing (PPC)?

For quite some time now, the shift towards digital mediums has been
imperative to all sorts of businesses. In the year 2020, this shift
accelerated at an exponential rate. Given the situation, everybody
dipped their toes into the pool of digital platforms. The lockdowns and
quarantines increased the average time a person spent on online
platforms. This was an opening for all kinds of businesses to best use
their online presence to keep their traction at par even in uncertain
times.

However, to maintain a digital presence, you must have effective and
creative digital marketing strategies in place. Digital marketing is the
key to sustaining an online presence. With a lot of options available
online, it becomes more and more difficult to stay unique. All your
competition is also within reach of your prospect. Hence, most business
models these days heavily rely on digital marketing strategies. With
access to a large variety, a potential customer can very easily stray
away unless you ensure that you have got it all covered. From PPC to
social media outreach, you will have to stay on the front foot in order
to ensure that you stay alive in the competition.

What is Digital Marketing?

Digital marketing is similar to traditional marketing, but the key
difference is the medium through which you market your product. Any
advertisement you push through the internet comes under the category of
digital marketing. From sending emails to potential customers to
creating landing pages for a certain demographic, everything is a way to
market your product digitally.

Kinds of Digital Marketing Strategies

Even though the ideas and the concepts behind the strategies are
somewhat borrowed from marketing in physical mediums, these digital
marketing strategies are unique on their own. These strategies are used
differently based on your research into the target audience and what you
hope to achieve. But generally, most of these are utilized at the same
time by a business in order to ensure optimum results.

Pay-Per-Click (PPC)

Pay-Per-Click is a type of advertisement strategy where a third party
hosts your advertisements. This can be different social media platforms
or search engines. They will screen the prospective clients for you and
push your advertisement to them based on their algorithms. This
increases the amount of meaningful traffic that you get on your landing
page. However, every time a client is redirected to your page through
the host, you will have to pay the host a certain amount that has been
set beforehand.

You will have to pay this amount regardless of whether the prospect
converted into a customer or not. The amount that you have to pay varies
based on different factors and metrics. However, the plus point is that
you pay for the traffic that you get on your page. If you have created a
well-designed, properly optimized landing page, it will mean that you
will be generating revenue marginally due to this.

Search Engine Optimization (SEO)

Search engine optimization is another important digital marketing
strategy that is crucial for businesses with a lot of competition.
Search engine optimization is an organic method to get traction on your
webpage. However, it requires quite a lot of effort and constant
updates. It basically ensures that your website shows up when any user
types anything relevant to your business in the search engine. It is
generally noted that people do not look at more than the few top search
results (only a few people actually check the second page of Google).
And so, getting a spot on the first page of Google (preferably the top
3) should be your goal.

Another alternate would be to pay the search engines to rank you above
the others. However, your website will be marked as an advertisement, in
that case, to distinguish it from those who have ranked organically.
This creates a minor hassle for you since people are more inclined
towards organic searches on search engines and are known to trust them
more than what is labeled as an ad.

While organically ranking your webpage does not cost you much, it does
require constant effort from your end. It may not start producing
results right away, but a good SEO rank can be a big plus point for your
business in the long run.

It can put your business in the spotlight and create traction towards
your business, which will, in turn, reduce the amount of effort needed
to keep up your SEO rank.

Utilizing Social Media

While social media may seem like a trivial option, it is a great way to
gather an audience and create a brand for your product. Moreover, it
does not cost you anything. However, it does require a commitment to
online trends. Social media marketing opens up different avenues for
you, from setting up stores to handling customer queries and engaging in
customer polls to better understand your clientele. Social media
marketing strategy is a complete package. Moreover, you can filter out
the audience as well, and you can reach out to a larger audience much
more conveniently.

How Much Revenue Should You Invest In Digital Marketing?

This is an important question to ask when allocating a budget for your
marketing strategies. How much should you invest in digital marketing
overall, and how should you divide it among the different strategies?

A general rule of thumb when it comes to investing your revenue into
marketing strategies is to invest around 7-10%. However, this number may
go up or down depending on what stage you are in, how much revenue you
are generating, and what you want out of your digital marketing
strategies.

When it comes to the most effective strategies that we have discussed
earlier, SEO and social media marketing may not cost you anything. They
are based on organically getting your product out there to the audience.
However, Pay-Per-Click is one of the most crucial marketing strategies
that require you to set aside a budget.

Given the traffic that can be generated with the help of PPC, it is
recommended that you set aside at least 35% of your digital marketing
budget for it. You can use the rest to create the content that your PPC
strategy will lead to. The content is equally important and should not
be compromised.

If you do not have landing pages that cater to the customer experience,
your PPC investment will also go in vain. However, you must also
research the cost that goes into getting a lead and your conversion
rate. You will have to work out a budget, keeping in mind the investment
against the returns. When investing in PPC, return on investment is not
reflected by the traffic generated, but rather, the leads converted.

Takeaway

Out of all the other marketing strategies, PPC plays a very significant
and unique role. Even though it requires an investment to get things
rolling, the return on investment can be increased if you use the right
strategies and do your research. When incorporating digital marketing
strategies into your business model, PPC should not be neglected.

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