How much money do you need to invest in digital marketing to see results? Is digital marketing even worthwhile? These are critical questions to ask if your company is thinking about launching a digital marketing campaign. We’ll get to these questions in a minute. Marketing has evolved from traditional offline channels to the digital world, and the good news is that costs have decreased. It can also be argued that digital marketing is far more effective than its predecessors, which primarily consisted of print advertising, TV and radio commercials, and direct mail.
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Many businesses are interested in using digital marketing to help their business grow but are unsure how much it will cost. Continue reading if this description is accurate. This digital marketing pricing guide will assist you. It will give you an idea of how much you can expect to invest in digital marketing and what you can expect in terms of pay-off, whether you work with an outside marketing firm or do it yourself. Because your company is one-of-a-kind, a one-size-fits-all digital marketing strategy will not work. There are several factors that will influence your investment:
- Size of a company
- Marketing goals
- Timeline for Marketing Budget
Plan to spend 10-30% of your revenue on digital marketing if you own a small-to-medium-sized business. This estimate is supported by a Brafton study, which shows that the average percentage of revenue spent on digital marketing by businesses is 11.2 percent. The needs of a small business for advanced SEO operations are obviously less than those of a large multinational corporation like Starbucks or GM. Small businesses typically have fewer webpages, whereas a large corporation may need to optimize more than 1000 web pages. For example, Google currently has approximately 600,000 pages indexed on OfficeDepot.com.
Search engine optimization (SEO), social media advertising, and pay-per-click (PPC) advertising are the three most well-known components of digital marketing. Email marketing, content marketing, influencer marketing, and affiliate marketing are all forms of digital marketing. Let us concentrate on the “top three” because they are the most commonly used and often produce faster results. The following is a rough estimate of their costs:
- Search engine optimization costs between $1,000 and $7,500.
- Social media advertising costs between $4,000 and $7,500.
- Pay-per-click advertising: $9,000-$10,000
- Let’s go over each of the digital marketing services and their associated costs.
1. Search Engine Optimization (SEO)
Search engine marketing (SEM) is one of the oldest forms of digital marketing and can take the form of search engine optimization (SEO) or paid search. SEO (website optimization, webpage structuring, keyword research, search intent, content development, and content optimization) is completely free.
You are not required to pay anything to the search engine. If you have the necessary expertise, you can do it all yourself. Otherwise, you should outsource SEO implementation to a professional SEO expert or agency. Always confirm a freelancer’s or agency’s claims. Interview them, get references, and look for online reviews. Insist that they demonstrate their ability to “walk the walk.”
According to Moz, an SEO agency, here is the average cost of SEO services if you decide to outsource:
- Hiring a professional freelancer for SEO costs around $80-$130 per hour.
- Hiring a digital marketing agency costs around $750-$1,500 per month.
- A single SEO campaign or project will cost between $1,000 and $7,500.
- Do your research before deciding whether to hire a company or do it yourself. Have a clear plan, a timetable, and a way to measure effectiveness. Otherwise, all of your efforts (and expenditures) may be in vain.
I’ll go over paid search a little later in the article.
2. The Price of Social Media Advertising
Social media marketing (SMM) encompasses both social media optimization (SMO) and social media advertising. As with SEO, if you or your marketing team is skilled in this area, you won’t have to spend much or any money on SMO other than what it costs to build and retain your team.
Advertisement options such as sponsored posts are available on social media platforms such as Facebook, Twitter, and LinkedIn. There is no set minimum, and monthly fees can range from $100 to $10,000. However, social media advertising costs typically range between $3,000 and $7,000 per month, depending on the platform, the target audience and its size, and the frequency of posts/ads.
Why should you pay so much to advertise on social media when it is free for everyone? SMM entails paying the social media platform to get your posts or ads in front of your target audience. You will have difficulty reaching the people you want if you have a small following with little brand awareness. Advertising on social media channels can help you expand your reach and raise brand awareness.
Social media platforms such as Twitter, Instagram, Facebook, and LinkedIn can provide you with access to large audiences. Facebook alone has over 2.4 billion monthly active users. They also provide ways to precisely target your ads so that they are seen by the right people.
This sounds great, but before you start throwing money at Facebook, Twitter, or Instagram, you need to have a plan. You must take a comprehensive approach and have a plan in place as well as the ability to review the analytics to determine whether it is a worthwhile investment. It usually takes some trial and error and campaign tweaking before you know if social media marketing is right for your company.
Consider the two largest social media platforms, Facebook and Twitter, to better understand how social media marketing service costs work.
Facebook Ads works on a cost-per-click (CPC) basis, where you pay Facebook for each click on your link by your audience, or a cost-per-thousand (CPM) basis, where you pay Facebook each time your post or ad is seen by 1,000 users. A CPC campaign typically costs between $0.50 and $2.00 per click, whereas a CPM campaign typically costs around $11.
Twitter Ads work similarly to Facebook Ads in that you can target an audience that isn’t following your profile. When you run a sponsored tweet campaign, your tweets will appear in their Twitter feed. Twitter Ads provides a CPC campaign in which you pay an average of $1.35 each time a user clicks, replies, or retweets your tweet or ad. The reason for the variation in CPC costs is that CPC works like an auction; the more competitors you have, the higher your bid (i.e., you’ll need to bid more money than your competitors to have your ads rank higher).
Twitter Ads also has a feature where you can promote your business to gain new followers, and for each new follower you gain, you pay Twitter between $2 and $4. You can also promote a hashtag or trend related to your brand to encourage users to talk about it. This feature has a flat rate of $200,000 per day and is intended for businesses with a large marketing budget and an established online presence.
3. Pay-per-click (PPC) Advertising Costs
Pay-per-click advertising is a marketing strategy in which the advertiser pays for ad clicks or impressions. Google Ads is one of the largest PPC advertising platforms. It was formerly known as Google AdWords, which you may be more familiar with. This pay-per-click (PPC) online advertising platform allows advertisers to display their ads on Google’s search engine network. Bing is another search engine that provides PPC advertising. Bing Ads has been renamed Microsoft Advertising. These ads, which are similar to Google Ads, appear on the search engine results page (SERP).
When people have a question, they usually go to a search engine. Advertising on search engines allows you to reach people at the precise moment they have a question or need.
Bids are placed within the search engine advertising platform to improve the visibility and position of your ads. The Tie Bar and JoS. A. Bank are two retailers that ranked first and second in a Google search for “pocket squares.”
If you’re unfamiliar with PPC advertising or Google Ads, I explain how they work in this blog post.
Google Ads and Bing Ads are highly customizable, allowing you to tailor your campaign to your marketing objectives and budget. Small to medium-sized businesses typically spend $9,000 to $10,000 per month (or $100,000 to $120,000 per year). The average cost of a Google network ad is about $1 to $2 per click. Don’t be alarmed by those figures; as I previously stated, there is a lot of variation in costs. Read on to learn more about how much Google Ads cost.
4. Email Marketing Costs
Email is another low-cost and time-tested digital marketing strategy. Email marketing assists businesses in increasing brand awareness and loyalty, which leads to increased lead conversions and sales. When done correctly, email marketing can provide a return on investment (ROI) of approximately 4,300 percent. Dell used this strategy and saw a 109 percent increase in revenue.
Email marketing is versatile because it can be easily integrated with other digital marketing strategies. For example, if you invest in content marketing or video marketing, you can repurpose your content or video and include it in an email marketing campaign. For instance, your most recent eBook could be turned into a 5-step email course.
If you use an outside agency, this digital marketing strategy will cost you between $300 and $2,000 per month. This price includes extras to improve the email marketing campaign, such as a customized email template design. If you do it in-house, it can be even less expensive. Please contact me by email.
5. Video Marketing Costs
Another digital marketing strategy that can help a company grow is video marketing. Because it involves creating valuable, informative, and engaging content for the audience, video marketing is similar to content marketing in its ability to raise brand awareness, engage audiences, and influence purchasing decisions.
Investing in video marketing can increase your conversion rate by more than 85 percent. This would result in an increase in leads/customers, which would increase your sales revenue.
If you’ve already started using content marketing, you can easily supplement it with video. Blog posts, white papers, and eBooks can all be repurposed into video content. Convert your most recent eBook into a video tutorial. Create testimonial videos by adapting your case studies.
According to Tubular Insights, 64 percent of buyers purchased products or services after watching branded videos, and business owners who use video marketing grow profits 49 percent faster than those who do not. Simply by incorporating video into your digital marketing campaigns, you will notice an increase in conversions.
If you’re thinking about video marketing, set aside between $1,200 and $50,000 in your marketing budget. Professional videography services can be costly, but DIY is also an option. Cell phone cameras are becoming more sophisticated and high-quality, which means that if you have a good phone, you can create videos in-house. These types of videos are especially well suited for social media platforms like Facebook and Instagram, where you can create live videos to connect with your followers.
6. Voice Search Optimization (VSO) Fees
Voice search optimization (VSO) is a new and growing digital marketing strategy. VSO, like SEO, focuses on optimizing your featured snippets with relevant keywords to improve voice search. VSO is becoming more popular due to the increased use of voice-activated assistants such as Google Assistant, Apple’s Siri, Microsoft’s Cortana, and Microsoft’s Alexa.
Voice assistants respond to vocal queries with featured snippets. For example, if a user asks in Google voice search, “Google. “How do you respond to negative online reviews?” Google Assistant would respond, as shown in the snippet below:
With voice searches accounting for more than 20% of all web searches each day, VSO is becoming more valuable to astute business owners. Investing $600-$2,000 per month in VSO can give you a competitive advantage and make it easier to connect with new and returning customers.
Expect to spend 10-30% of your revenue on digital marketing
Digital marketing is more effective and less expensive than traditional forms of marketing. However, before deciding to use it to drive their company’s growth and success, business owners should be aware of the costs involved. Businesses should expect to spend 10–20 percent of their revenue on digital marketing, but if done correctly, it can increase revenue by more than 109 percent.
Keep in mind that digital marketing is an ongoing strategy, and your budget may change as your company grows. So, if you’re interested in learning more about how digital marketing can help your business grow, you’ve come to the right place. Speak with one of our digital marketing experts today.