Digital marketing has successfully replaced traditional marketing. Even the print and TV advertisement have stepped aside to make way for digital advertising. When it comes to marketing, the tangibles often addressed are planning, executing and monitoring. Budgeting is often forgotten. However, budgeting is the first factor that marketers need to consider and one which has to be constantly revisited.
Deciding the marketing budget requires several data. This data is used by marketers to identify opportunity, problems and its solutions. In this day and time, data is fundamental for marketing. Data driven decision making, while budgeting, results in a profitable business.
A marketing campaign results in sales, and traffic to the website. This can be measured by the return on investment or ROI. The ROI has to be presented to the senior management annually or quarterly. This is why budgeting is key to marketing. Major businesses first allot a budget, then sets a goal and then estimates an ROI. The budget influences every aspect of marketing and data helps allocate the resources and save money. Data driven decision making for budgeting is smart decision making. It makes use of customer data, competitor data and past campaign data.
Goal Setting And Sales Funnel
Before setting current goals of a business, the previous goals needs to be revisited and analyzed for success. Also understand how many customers are in the sales funnel and their status. There are several analytics that helps define a customer funnel goal. Understanding consumer position in a funnel can help create targeted advertisements which can then boost sales.
Past Campaign Comparison
Data from past campaigns shows the success rate of those campaigns. How to analyze this? Compare the data from several campaigns and analyze which mode of advertisement has the highest ROI.
Data can also be used to find the marketing strategies of competitors. One cannot find out the precise budget of a competitor, but by analyzing the medium and frequency of ads, an estimate can be reached. This will give a business a better outlook and help set realistic goals.
Timeline of Ads
Time is of essence while allocating a marketing budget. If the timeline for an advertisement extends, the budget too exceeds. Make use of the data from previous campaigns to ensure that the resources are aligned to meet the timeline of the marketing.
There are several avenues to allocate the marketing budget. Choosing the right platforms for marketing requires the right data. Is email marketing good? How much budget was the last campaign allocated and what was the ROI? To answer all these question, data is mandatory.
If the business has the resources, then machine learning can be used to analyze historical data to come up with a model of marketing forecast. Predictive models are also used to optimize budgeting.
Lastly, every campaign needs to be monitored for performance. Again, data comes in handy here.
To conclude, data is a powerful weapon for allocating marketing budgets. Data driven decision making will ensure high ROI of any campaign. To learn more about marketing, budget allocation and digital marketing, enroll for the Advanced Digital Marketing course at Regenesys.