The recession has received a lot of attention lately. Many businesses have shut their doors, while others have reduced their workforce. However, contrary to popular belief, the recession actually creates fresh opportunities. Online marketing is one such opportunity. Companies now have access to millions of potential clients simply waiting to learn about their product or service, thanks to the development of the internet and social media platforms like Facebook and Twitter. Additionally, more people are using smartphones and tablets to browse the web than ever before, thanks to the advancement of mobile technology. Because of this, you may connect with these clients wherever they are.
Your digital marketing cost will depend on several factors, such as your budget, your target audience, and the channels you want to use. Generally, small businesses should spend between 10% and 20% of their revenues on their online marketing.
It’s impossible to estimate precisely how much your web marketing will cost. Different businesses have diverse requirements, plans, spending limits, and objectives. Additionally, smaller digital marketing agencies frequently have lower prices than their larger competitors. Working with a small agency also frequently has advantages over working with a big company.
In this article, we’ll cover:
- What is digital marketing?
- The Benefits of Digital Marketing
- Why Get Digital Marketing For Your Company
- Digital Marketing During a Recession
- Digital Marketing Packages for Small Companies
What Is Digital Marketing?
Any marketing that uses digital technology tools and tactics is referred to as digital marketing. Digital technologies are used by businesses to connect with customers, forge lasting bonds with them, and boost sales. Email marketing, display advertising, mobile marketing, and search engine optimization are the four primary subtypes of digital marketing. To market products and services to current and potential clients, email marketing is used. Ads are used in display advertising and are seen on websites, blogs, and social media platforms. Apps and SMS messages are used in mobile marketing to communicate with customers. Finally, search engine optimization increases the visibility of websites in search results by using keywords and links.
The Cost of Digital Marketing
Since you came for an answer, let’s start with some concrete figures before working backward to describe how we arrived at them.
A typical company in a typical industry has to invest at least 20 hours per month in digital marketing. Consider a scenario where the business is engaged in a cutthroat sector, like the legal or dental fields. In that case, they probably need to increase their marketing expenditure. Imagine being employed in a region with intense competition, such as San Antonio or Austin in Texas. If so, they would likely need to invest more time in marketing than businesses in smaller cities like Bellingham or Mount Vernon, Washington. You will need to invest a lot more effort if you attempt to rank for several cities, states, the country, or even the world.
Let’s say you are a start-up or that your current website is in poor condition. If so, you will likely need to spend more on marketing than someone already ranking on page two but wants to be at the top of page one.
Most agencies bill between $80 and $200 per hour for digital marketing. You would spend roughly $2,000 per month for an average service if the marketing project required 20 hours per month at a rate of $100 per hour.
Companies often spend between $500 and $25,000 per month on digital marketing, in my experience. Some marketing companies may provide services for less than $500 per month, but what can someone do in just 5 hours each month? Unless you work in a very small area and aren’t in a highly competitive field, it’s usually not enough to get your website to the front page.
Most small to medium-sized enterprises spend between $2,000 and $6,000 monthly on digital marketing. However, more ambitious companies spend between $10,000 and $20,000 monthly.
Larger firms frequently spend well over $100,000 per month on web marketing.
Some Variables that Determine Digital Marketing Prices
The following factors account for the wide range of digital marketing pricing.
- The industry or niche you are in.
- Where you are located.
- How competitive is your industry?
- Your timetable for achieving results.
- Your current search engine ranking.
How the niche/market you are in affects price:
Conversion rates and the price an ad network will charge you will depend on your specialty or niche.
For instance, a typical bail bonds company will spend $58.48 on Google Ads on average for each click. The average cost per click for a pest control business on Google Ads is $38.84. A bail bond company might have to spend almost 50% more on advertising to receive 1000 clicks per month.
Conversion rates vary depending on the market. A landing page for higher education often converts at a rate of 2.6%. In contrast, a landing page for vocational studies typically converts at a rate of 6.1%.
A higher education organization would need to increase website traffic by nearly 134% to reach the same number of conversions each month.
How your location affects price:
Both organic SEO and PPC prices may vary depending on where you live. Generally speaking, a Ferndale, Washington law practice will have less competition than a San Antonio injury law office. Because of the increased competition, marketing agencies may charge more to get a click. The number of legal firms vying for the top spot in search engine results may make it more challenging.
How competitive your market is can affect the price:
The price may also be impacted by how competitive your market is. In my experience, not all markets invest as much in digital marketing as others.
Suppose you have a glass-blowing website that you want to rank in the number one position for your city. In that case, the chances are you won’t see very many other glass-blowing companies putting in meaningful marketing efforts.
On the other hand, internet marketing campaigns for mesothelioma are among the most fiercely contested.
How timeline can affect the price:
Paid advertisements could be the quickest option to get results if you need to drive results right away. In essence, you would be paying for website visitors. Ads can drive website traffic more quickly than trying to improve organic search engine rankings.
In addition, putting in more time will produce outcomes quicker and cost more money.
How your current search engine results can affect the price:
Are you already appearing in search results for the phrases you wish to rank for? Is your site showing up on page 1 or page 10? The amount of work required to reach #1 will depend on your present position in search engine results, which will act as a starting point. Creating content or upgrading the current website may be necessary if your website isn’t even appearing for the search query.
What Should a Business Budget for Digital Marketing?
To decide how much money my clients should spend on internet marketing to be successful, I always ask them the following questions.
Internet Marketing Questions for Your Business
What are your goals?
Your goals should be specific about what you need since this will assist a marketer in determining what services are required. Many internet marketing services are available, including SEO, PPC management, social media, and email campaigns.
What makes your business stand out?
A marketer needs to thoroughly understand your company to optimize it effectively for the web. You will be more successful offline and online if you know what makes your company unique or its “unique selling proposition” (USP).
What are you doing offline?
Small business owners know it’s essential to blend traditional and offline marketing strategies with your online marketing efforts. Suppose nothing is happening with your traditional marketing efforts. In that case, it can take twice as long and cost twice as much to achieve the same result with internet marketing.
Who and what are your competitors doing?
Every internet marketing plan should include a detailed analysis of the competition. A skilled San Antonio internet marketing agency can provide you an idea of what would be required to succeed in your area by evaluating your competitors. For instance, a chiropractor in San Antonio will face considerably greater competition and be required to invest more in marketing to maintain its competitiveness with the other attorneys in the city than, say, a chiropractor in Ferndale’s central business district.
What platforms are your customers on?
Costs associated with various marketing channels vary widely. If all your customers are using search, that’s fantastic, but PPC advertisements may also be necessary. Likewise, if you’re looking for animated movies to create content, the cost of those may vary. It’s crucial to be aware of the platforms you have access to and those your target audience favors.
How are you going to measure success?
Sales generated are typically used to gauge marketing success. Your marketing team needs to be aware of your sales objectives, and you should keep them informed at every stage of the process. Interpreting data, which can take hours or days, is a significant portion of a marketer’s job. The expenditures incurred increase with the time and effort spent evaluating the data. Still, these costs are also correlated with your increased sales profits!
If your annual sales are less than $5 million, the U.S. Small Business Administration advised allocating 7% to 8% of your total income to marketing.
Benefits of Digital Marketing
Having a digital marketing strategy has several advantages. In addition to assisting you in raising brand awareness among your target audience, it enables personal interaction with them. Social media channels allow you to interact quickly with your customers and reply to their inquiries and comments. Digital marketing is effective and efficient, as was already said. Unlike conventional marketing strategies, the most effective digital marketing initiatives need minimal resources. Digital marketing, most crucially, allows you total control over your message and campaign.
Why Get Digital Marketing For Your Company?
To expand your business, you must invest in digital marketing. You may begin developing your brand by launching a digital marketing campaign. Once you have established your brand, you will be able to monitor everything that occurs around it. Using a digital marketing plan, you can manage every part of your organization, including the budget, goals, and strategies.
Digital Marketing During a Recession
Many look to their friends and family for financial help during a recession. However, asking your family members to invest in your business might not be practical if you own a small business. Therefore, you must reach out to the enormous client base of people looking for solutions. If you take this action, you can ensure that you stay viable through a recession.
Digital Marketing Packages for Small Companies
There are several factors to consider when selecting a package for your digital marketing strategy. You should first be well aware of the kind of budget you have. Next, you should decide if you’d want to invest time and energy in coming up with your own ideas or following someone else’s creative lead. Finally, you must determine whether you like to operate as a team or independently. You can select the bundle that best suits your needs once you’ve decided which choice is ideal for your business.
The price of digital marketing is now clear to you. Is the investment worthwhile? A new digital marketing strategy can bring in more clients, improve company visibility online, and boost sales.
So if you want to start working on your own brand of digital marketing magic, you’ve come to the right place. You’ll get a tailored quote after we get some basic information from you. It’s free and only takes a minute! Let’s set up a time to meet.