All small businesses need a good marketing plan to help it reach its targets and aspirations. With every marketing plan comes a marketing budget. You can say they go hand in hand. Creating the optimal marketing budget will ensure you spend the right amount of money in the right places to achieve your marketing goals. Creating a marketing budget used to involve a lot of trial and error which can lead to unnecessary expenses and ineffectiveness. But nowadays with everything becoming easier thanks to the amount of information available on the internet, so is creating the optimal marketing budget, everyone can do it.
Small business owners are finding new ways and techniques to plan out their strategies and design successful marketing budgets. It all comes down to how much are you willing to spend to acquire new customers and increase your brand awareness.
Before setting up any kind of budget it is important to ask yourself these questions:
· What goals do you want to achieve?
· Who is your target audience (your ideal customer profile)?
· How much are you willing to pay to achieve your goal (be it a new customer, new website visit or app download)?
Depending on your answers, you should get a clear picture of who you aim to approach, what is it you want to achieve and how much you are willing to pay per unit. You may not get the answers and results you want immediately, but thanks to continuous testing and optimisation, you will step by step get closer to achieving your overall goals.
It is important for small businesses to research and find out who are their potential customers and how to reach them. By knowing your targeted audiences age, income, demographic, geographical area and likes will help you figure out a plan to successfully guide them through your businesses sales funnel. Sales funnel data is another key tool to creating the right marketing budget because it lets you track results throughout your revenue cycle and gives you an inside view on potential customers.
All of this information will help you effectively build a marketing budget.
There are a lot of different opinions going around when it comes to how much money you should spend on marketing. But you should know that normally to make money you need to invest money. In this day and age, it is nearly impossible to run a business without marketing. The recommendation for small businesses is to allocate a percentage of their gross revenues to marketing, usually between 6-10%, splitting it then between different marketing platforms depending on your targeted audience and goals.
You can also test the waters and start off with a smaller budget and slowly build it up after you get the hang of it and find out what marketing ads and campaigns work best for your business. So, you don’t have to worry about losing money.
After setting up your budget and selecting your targeted audience it is time to choose the platforms you want to use during your campaign. This will help you divide your budget up into different portions and prioritize the best platforms for you and your business. By selecting the best platforms for your marketing campaign, you will be able to put your money in the right places. Create a list from most important to least important platforms. The options may include:
· Search engines optimization (Google, Bing, Yahoo)
· Social media (Facebook, Instagram, Twitter, LinkedIn, Snapchat, Pinterest)
· Content marketing (Blogs, Video content, Podcasts)
· Influencer marketing
· Email marketing (Newsletters)
In the end it is up to you to decide how much money will be spent on each online platform and you will always be in control of the amount of money going into your online marketing.
Before dividing your budget up into portions for each platform it is important to test the potential cost and return on investment for each one. Some platforms will cost more than others and will have a higher ROI. That doesn’t mean that less expensive ones will perform worse. Some will bring immediate results and others will over a longer period of time. It all depends on your marketing plan and what are your long and short term goals.
Here is how you calculate your ROI: [(return - investment) / investment] * 100, where return represents what you earned, investment what you invested in the campaign. To give an example, if you invested 10 USD to a campaign that brought you 100 USD, your ROI is 900 %.
Never be stagnant. After you have finished your marketing plan, set your marketing budget and your marketing campaign is up and running, keep looking for ways to learn and improve. There is never a 100% right or wrong way in building your budget. Follow past and future trends. Keep track of the results from different platforms. See what is working and what is not. What needs to be changed and even what maybe has to be removed completely. Constantly evolve with the times. Use techniques that are proven to work but also don’t be scared to try new ones.
A marketing plan and budget should consist of traditional approaches as well as new up and coming ones. With the world of marketing evolving every day it is important not to fall behind.
In conclusion your marketing budget doesn’t only mean how much money you can spend on marketing, but it also involves choosing where to spend your money and on what platforms. Make sure to do your research on where to put your money and who to target. Decide how much you are willing to pay to acquire new customers and grow your business. In the end always remember to make money you need to invest money.
With 400 new users every 60 seconds, Facebook is not only the biggest social media platform, but it is continuously growing. Today, there are more than 2,4 billion users which is roughly 60% of all internet users. Nonetheless, some say its audience is getting older as younger internet users are getting excited about platforms like Instagram, TikTok or Snapchat. In this post, we will dig into the most important Facebook demographics and stats, so that you can get a better idea of who to target while creating your marketing persona and your plan on how to reach him or her.
Having a clear picture of how a channel grows is a key component to starting your marketing plan – promotion and content distribution. If you offer sneakers and target youngsters, relying solely on Facebook may not be the best tactic… Why? This audience is more likely to be found using social media platforms, such as Instagram or Tik Tok. Knowing your audience and stats behind the channels you want to use is crucial.
Let's finally dig into the most important Facebook demographics and stats!
Books have been a main source of information for a long time and although we can’t exactly say that today, they’re still very important. Lots of people still read books to educate themselves. Even though the internet is now overshining our good old books, it doesn't mean that there aren't great works of literature anymore. If you keep on walking around the marketing section in your favorite bookstore and you just can't decide which one you should read, here's your new TO READ list.
Maybe one of them is exactly what you're searching for.
There are more than 7 billion people on earth. And 1 billion of those people are on Instagram. That means every 7th person uses this visual-based social media network. Launched in 2010, and eventually bought in 2012 by Facebook (with more than 30 million users back then), Instagram offers a huge opportunity to connect with your current and potential customers, as well as, your followers and fans. The growth has been tremendous, which makes Instagram one of the most well-known and most widely-used social media platforms of all.
You already know that you can leverage any platform if you have a clear understanding of the audience you can reach there – and whether or not it aligns with your target audience… To find this out, let's jump into the key stats about Instagram and its users!
One of the main problems of real estate agents, is getting listings. To make it work, you shouldn’t just focus on your website. Social media and the online world, overall, could be a marvelous extension of the brand you present yourself as offline. If you take advantage of its options, you’ll reach more people, build trust and most importantly - sell.
Here are a few things you should know about social media marketing for real estate.
Have you ever wondered if the journey of your customer is trackable or even viewable? I have good news for you – it is. You can – in many cases – track how many people know about your business, how many of them consider purchasing your goods and, of course, how many already bought and referred your product to a friend. Being able to view the customer journey, optimise its steps and analyze your efforts is crucial for any kind of business. Trust me, the size does not matter (in this case). Every business should do it.
Marketing funnel is a term that resonates with the majority of marketers. They tend to use this model to illustrate the customer journey – from brand discovery to purchase. As stated, measuring every step of the funnel brings you a much better overview of your efforts and, thus, a higher return on investment, which is your goal, isn't it? The more you can get out of every stage of your customer's journey, the better the results are in terms of number count or revenue.
Let's say your customer journey has three main phases:
Please note that in this case we don't cover the scenarios that happen after the purchase is made (retention funnel).
Each stage represents a different behaviour stage of your potential customer. Say she has a problem which she is able to name. She begins to search for a solution – which you offer with your product or service. As soon as she discovers your business – among others – offers the solution she is already in the awareness stage.
Your presentation, product, its price and other factors determine whether she will move further on the journey. The consideration stage, needless to say, is a phase in which a potential customer already considers your product, is comparing it to your competitors and is aware of its pros and cons.
Decision. That's the phase we aim for. We want her to buy our product, right? That's when a decision is made. In this stage, your potential customer has already conducted the research, has chosen you over your competitors and is happy to buy what you have to offer.
We just described (in a very simple way) what a customer journey can look like. Sometimes it takes weeks to guide her through all stages of the journey, sometimes it is a matter of minutes. Imagine yourself buying a coffee in the city center. You probably don't do any thorough research, but you certainly look for coffee quality and price. You don't spend days comparing the product to other cafés or bars. You make the decision according to a few key factors. Your journey is fast and your decision is made pretty quickly. But it does not mean the café owner should not pay attention to the key factors, like what the café window looks like, or if their prices are reasonable, as it influences the customer's journey.
The customer journey can easily be viewed as a funnel. Therefore, marketers use it to analyze their efforts. To explain the basic idea behind the marketing funnel, let's use the widely-known model AIDA which stands for attention, interest, desire and action. Each of these phases represent a stage in which you might find your customers.
Obviously, your ultimate goal is to guide them through the stages without friction and in the shortest time possible.
Let us look at an example of a basic marketing funnel:
People obviously start at the top – marketers call it the top funnel. This represents the awareness stage. As customers move further in the funnel, they know more about you and your offer and start, as well as continue to consider it more and more.
Here is what a perfect marketing funnel would look like:
This would mean that everyone who discovers your product will decide to purchase. Going back to our example, 100% of the people who enter your café will buy a coffee. Of course, that's a seller's utopia. In an ideal world, this would work, not in the real one.
Your task is to carefully measure your funnel and optimize its steps.
Let's finally give a more concrete example of what a marketing funnel can look like in your case. Say you run a real estate business, and aim to attract potential house buyers with your website. That's also where you generate leads that you can then convert. Your main channels would be:
You would try to attract as many people as possible with your marketing budget and lead them to your website to show all the products or services you have. After they land on the website, ideally you want them to fill out a form, in case, they are interested in a particular offer. As soon as they do so, you connect with them via phone or email and find out whether their interest can lead to a conversion.
This is what your funnel would look like:
Let's do some math now. Say your marketing efforts help you reach 10,000 people with your ad. 3% of them interact with your ad and visit your website. That would mean you have 300 people on your website, right?
How many of these people are you able to convert into leads? That depends on how your website attracts its users and how juicy your offer is, doesn't it? Let's say you have a 10% conversion rate (10% of website visitors convert into leads). In this case, you would have 30 leads waiting to be contacted.
How many of them can you convert into sales? Again, factors like your response time, will play their role now. If you made it to 50%, you just made 15 sales. Now go back and think about what can be improved...
You can see that there are more factors that influence the efficiency of your funnel (and your efforts). One bit of advice would be: measure each step of the funnel, focus on the customer and do your best to improve the areas where it falters!
Going back to our example, simply by making your ad more appealing, you can increase your outcome from 3% to 6% which (if other metrics don't change) make 30 sales at the end of the day! Improve your website from 10% conversion rate to 15% and you almost hit the sky… You know where I am heading, right?
You may be wondering where you can get all of this data? Tools like Google Analytics, Google Ads, Facebook Business Manager or our own app that simplifies the process of ad management, can give you great insights into how many people you reached, how many of them interacted with your content, how many made it to the website and finally, how many were converted into leads. There is a plethora of ways to measure your marketing funnel – the customer journey. Even a piece of paper and good data sources can create miracles…
One thing is for sure: if you don't measure your efforts carefully, you may be investing money and energy into something which does not bring you results at all.
Facebook gathers more than 2,4 billion monthly active users. That being said, it is obvious that the possibility to reach your potential customers is high. On the other hand, getting to know the platform takes time or costs tons of money (for agency fees). For small business owners who decide to leverage this platform, time and money are the core assets.
So how can you get the most out of the biggest social network? First of all, know the basics. Facebook (and any other advertising platform) can be overwhelming, which makes it easy to get lost. Don’t try to understand everything. Choose to learn what matters to your business the most!
We have prepared content that will help you get to know the very basic idea behind advertising on Facebook. We call it the Beginner’s Guide to Facebook Advertising and within it we cover the following topics:
Dig into the Facebook advertising by downloading the e-book below and let us know how it helped you boost your business!