How much should your Digital Marketing budget be in 2024?

Build an Effective Digital Marketing Budget

As we’re already making headway into 2024, digital marketing continues to dominate strategies due to its efficiency, reach, and measurable outcomes, such as SEO, social media and paid advertising. Crafting a robust digital marketing budget is paramount for B2B businesses to thrive in their competitive environments. In this guide, we’ll delve into the essentials of building an effective digital marketing budget for 2024.

What is the average digital marketing spend?

Digital marketing has become an indispensable component of overall marketing strategies. According to Gartner, allocating 56% of the marketing budget to digital channels is recommended. Furthermore, Gartner suggests that the overall marketing spend should amount to 9.1% of total revenue for established businesses and anywhere between 12-20% for companies under 5 years old. And if you still need convincing that digital marketing is the future, let me also remind you that 52% of B2B buyers say they’re ‘definitely’ more likely to buy from a brand once they’ve read their content.

These statistics underline the significance of digital channels in modern marketing endeavors.

How to allocate digital marketing spend:

1. Define Clear Objectives:

Before diving into budget allocation, it’s crucial to establish clear objectives aligned with the overall business goals. Whether it’s enhancing brand awareness, generating leads, increasing sales, or improving customer retention, defining specific, measurable, achievable, relevant, and time-bound (SMART) objectives is fundamental.

2. Analyse Past Performance:

Reviewing past marketing campaigns and their performance metrics provides valuable insights into what worked and what didn’t. Analyse data such as conversion rates, customer acquisition costs, return on investment (ROI), and customer lifetime value (CLV). This analysis guides decision-making and helps in allocating resources more efficiently.

3. Determine Channel Mix:

In 2024, the digital marketing landscape encompasses various channels, including social media, search engine optimisation (SEO), pay-per-click (PPC) advertising, email marketing, content marketing, influencer partnerships, and more. Understanding your target audience and their preferred channels is essential for crafting an effective omni-channel mix. Invest in channels that yield the highest ROI and that also align with your objectives.

4. Budget Allocation:

Based on Gartner’s recommendation, allocate 56% of the total marketing budget to digital channels. Within the digital realm, distribute funds strategically among different channels based on their effectiveness, potential reach, and relevance to your target audience. Keep in mind that flexibility is key, as certain channels may require adjustments throughout the year based on performance and market dynamics.

5. Account for Technology and Tools:

Investing in marketing technology and tools is vital for streamlining processes, analysing data, and optimising campaigns. Whether it’s customer relationship management (CRM) software, analytics platforms, social media management tools, or marketing automation software, allocate a portion of the budget to acquire, maintain & train employees on these technologies.

6. Factor in Creative and Content Production:

Compelling creative assets and high-quality content are essential for capturing audience attention and driving engagement. Allocate a portion of the budget for content creation, graphic design, video production, and other creative endeavors. Remember to balance between in-house resources and outsourcing to agencies or freelancers, depending on expertise and cost-effectiveness.

7. Monitor and Measure Performance:

Continuous monitoring and measurement of campaign performance are imperative for optimising budget allocation and maximising ROI. Utilise analytics tools to track key performance indicators (KPIs), conduct A/B testing, and gather actionable insights. Regularly review performance data to identify trends, opportunities, and areas for improvement.

8. Adapt and Evolve:

Staying ahead of trends and adapting to changes is essential for staying competitive. Remain agile and be prepared to reallocate budget and resources based on shifting consumer behavior, technological advancements, and industry developments. Embrace innovation and experimentation to discover new opportunities for growth.

Building an effective digital marketing budget in 2024 requires careful planning, analysis, and strategic allocation of resources. By following the guidelines outlined in this guide and leveraging insights from Gartner’s recommendations, agencies like us can optimise your marketing efforts, drive meaningful results, and keep you ahead of the competitors. Remember, success in digital marketing is not just about the size of the budget but how wisely it’s utilised to achieve your business objectives.

If you’re ready to expand your digital marketing reach, get in touch with the team today.

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Digital Marketing Agency Aberdeen | Scotland's Business Growth Marketing Experts