Where To Invest In Digital Marketing If Your Budget Is Limited?


13 Mar, 2024



Digital advertising is critical for accelerating the growth of your online business. However, it is often the case that without proper marketing strategies, businesses end up underspending or overspending. This can result in you missing out on great opportunities. Finding the best chances to invest the right amount on digital marketing services is important for boosting your business growth. 

However, allocating a budget for your digital marketing campaign isn’t always easy and straightforward. This article will tell you all about proper digital marketing budget allocation strategies. 

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Digital Marketing Budget - What is it?

For most advertisers in this day and age, digital marketing is the only way to go. The internet's ease of use, multitude of advertising options, and massive user base make it an ideal method for marketers to reach their intended audience.

A budget is simply a financial plan for a specific time period. A marketing budget is thus a spending statement for the marketing costs that you are willing to spend on your company or organization over a specific time period. That time period may be a month, quarter, or a year.

Usually, the digital marketing budget factors in the following things:

  • Marketing personnel payments
  • Paid adverts
  • Promotional campaign costs
  • Domain registration 
  • Marketing software
  • Website maintenance
  • Etc.

The list given above can vary from business to business, as each business has a different set of requirements and a different approach to marketing.

The Importance of Budget Allocation in Digital Marketing

Budget digital marketing allows you to properly strategize and methodically pick out the best course of action when dealing with digital marketing for your business.

In other words, it helps you in planning a budget for a digital marketing campaign for your business, so that you can take complete advantage of every opportunity and avoid overspending. It also aids in allocating funds in all the right places, thus preventing you from accidentally wasting investments. 

When you know how to allocate budget for digital marketing, it helps you translate your investments into marketing revenue, and attracts consumers towards your business.

Lack of digital marketing strategies can lead to you spending funds in the wrong places, and when the right opportunities come your way, you might find yourself in a position where you lack funds. This can lead to severe negative impacts to your business.

So it is best to avoid such situations by learning how to allocate budget for digital marketing, which will help you utilize your funds in the best possible way and grow your business in a sustainable manner. 

Things You Should Know Before Digital Marketing Budget Planning and Allocation

There are certain key points that you should keep in mind before allocating a budget for digital marketing of your business. 

  • While it is true that every business needs to finalize a specific amount to allocate for digital marketing, there is a threshold that the digital marketing industry uses as a rule of thumb. And that is, a business should allocate nearly 7 to 10 percent of their total revenue towards digital marketing. Of course, it varies from business to business, but this is a good number if you’re just stepping into digital marketing.
  • Secondly, it is always best to stay updated with the marketing trends if you wish to maximize your reach and attract more consumers. This is especially true in the digital marketing world, where trends switch on the regular. Because you wouldn’t want to be left behind, or it will hurt your business growth.
  • Finalizing your company’s objectives for which you’re running the entire digital marketing campaign is also vital. Everybody knows that marketing is done to generate leads and reach out to consumers, but there are also secondary objectives involved, such as product launch promotions, event announcements, etc. can also be done through digital marketing. 
  • There are a number of tools and channels available on the market for digital marketing. It is important that you carefully select your medium of running your digital marketing campaign, such that it reaches out to the maximum number of people while satisfying your business’ primary and secondary goals.
  • If you’ve been involved in digital marketing before, it is also a good call to analyze the past data to gain some insights. You can check out your older digital marketing reports and results, and see what worked last time and what did not. This will help you get an idea of what to avoid, and where you should focus more.

Some Digital Advertising Formats You Best Not Miss

Display Advertisements

These are the most traditional of all digital advertising formats. Display advertisements have quickly evolved into the most popular type of digital advertisement. All visual advertisements you see on a blog, website, or web platform are display advertisements. 

These ads are similar to the banner advertisements that are commonly seen in newspapers. While this format of digital advertising has steadily grown, it has also been greatly affected by the emergence of ad blockers.

These ads are typically static or lightly animated GIFs that are displayed to users as advertisements. Rich media ad formats, which frequently include visuals, sound, or other components to increase engagement, are also included in display advertising.

Video Advertisements

In today's digital age, video has become the most popular form of content consumed by users. Video ads are now the preferred mode of communication for both publishers and advertisers. The sudden rise of short video platforms such as TikTok, Instagram (Reels), and YouTube (shorts) has resulted in the current video boom.


Videos have a higher reach and click rate than other advertising methods, making it easier to level up digital advertising campaigns. Furthermore, publishers can use interactive video ads with enhanced elements to generate audience engagement. 

Users nowadays can quickly view even heavy video ads on their screens, thanks to rapid growth of internet speeds and advanced smartphones.

Audio Advertisements

Audio-based platforms have grown at an unprecedented rate in recent years. radio, Ebooks, podcasts, music apps, and social audio apps are keeping a plethora of users engaged.

As folks become more comfortable with these mediums for consuming audio content, the chance to advertise in this space becomes clear. As a result of this growth, audio ads have risen to become one of the most popular internet advertising formats in the industry. 

These advertisements are simple to incorporate into these platforms. Nevertheless, many people find audio advertisements to be bothersome because they start playing unexpectedly.

How To: Allocate the Digital Marketing Budget for Your Business

It is important to understand that there are some factors and elements of a digital marketing budget, because these are the funds you’ll be allocating a major portion of your investments into.

Your company's digital marketing budget is determined by several major and minor factors. The most important factors are the size of the company, its goals, its budget, and its target audience. Other considerations include any relevant marketing expenditures, promotional efforts, and initiatives. The components of a budget for digital marketing will differ greatly from business to business, but the following list of digital marketing elements intends to provide you with a general overview of the factors involved.

The major elements involved in a digital marketing campaign are:


Social Media Marketing

The first step in social media marketing for your business is to conduct a market study and explore the channels that your intended customers frequently use. This ensures that your efforts are directed in the right direction and that your marketing budget is maximized.

Using business intelligence tools and software, your marketing and sales teams can track social media activity to monitor engagement. This guarantees that your content is beneficial to your potential customers and that they engage with your brand.

Choose your online platforms and networks on which you wish to run your digital marketing campaign. It is not advised to post the same information on every platform. Determine the most effective channels for communicating with your intended audience and acquiring new clients.

To get the greatest return on investment (ROI) for your advertising money, you'll undoubtedly only need a few social media channels, as long as you post unique and engaging content on a regular basis. This is one of the key aspects of digital marketing, so you can invest here and hire an online marketing management team to manage your social media marketing.

Looking to Promote Your Brand On Social Media?

  • Achieve Your Brand Vision
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  • Create goal-driven Social-Media messaging

Email Marketing

One of the most cost-effective digital marketing strategies is email marketing. All you need is an email list of your target audience and an automation tool with software to send emails and analyze results.

Email advertisements are implemented to deliver relevant information to your target demographic. Typical email marketing strategies include grand opening emails, financial newsletters, and updates regarding anything else happening in your company or organization that you'd like to communicate to your clients.

Allocate investments into email marketing if you already have a large number of committed followers to market to. If you don't, try adding a lead generation form to your website and including contact information in your social posts to grow your email list.

Content Marketing

Everything from digital website content and sales funnels to blog posts, infographics, media platforms, and media content like tutorial videos is considered content marketing.

Successful collaborative marketing and engaging content that provides value go hand in hand in the realms of business partnership marketing.

You can repurpose existing digital content in your own words or invest and hire a dedicated content creator to write original content for you. 

B2B Influencer and PR Marketing

B2B or business to  business marketing involves promoting your business through relevant content and forming relationships with other businesses in order to be able to influence potential consumer base. B2B marketing has proven to be useful and is really popular these days. Hence, you can safely allocate some portion of your budget in B2B marketing and hire a PR team and influencers for the same.

Strategies to help you better optimize your budget allocation for digital marketing:


Team organization and marketing feedbacks

Before deciding on a digital marketing budget, it is critical to bring together your sales and marketing teams to ensure that everybody is on the same page. When your CMOs, marketing, and revenue teams collaborate to produce leads, success becomes more likely. When like-minded business partnerships are formed, collaboration marketing is a very successful method.

A clear approach to your digital advertising campaigns is beneficial not only for cooperation, but also for generating opinions and feedback about marketing tactics from various teams within your company.

Goal and Objective Identification

Before you start, it is a good practice to finalize a list of goals and objectives that you aim to fulfill through this digital marketing campaign. That will allow you to separate them in primary and secondary categories, and help you allocate resources and budget with maximum efficiency.

Consider Allocating Budget on Performance Marketing

Exploring opportunities such as performance marketing can help you maximize your advertising budget. Performance marketing is defined as rewarding partnered marketers based on the success of a marketing strategy. A sales stat, such as a conversion or click, is typically used to measure this.

Using performance marketing can significantly increase your brand's reach in the areas where you want to start engaging your potential customers.

Methods for Allocating Budget

The top best methods are listed below for you to keep in mind before allocating a budget for digital marketing activities. Set your team and department up for success by using these as a guide for your budget planning and strategy.

Practical Method

The simplest way to create a budget is to simply estimate how much money you can spare to spend on digital media. This totally depends on the status of your company that is whether you are a start-up or a mid-way successful one. It is merely a rough estimate that is primarily subjective. But for companies dipping their toes into digital media for the first time, it's a good strategy.

Sales Percentage Method

The first thing to check is the sale percentage for the past two years. These numbers will decide whether the campaigns are working or not. Additionally this will help you include new campaigns and eleminate the worthless ones. According to conventional opinion, your overall marketing expenditure should be 10% of sales. You may calculate your annual digital marketing budget by entering your annual revenues.

Competitive Parity Method

Whatever your business is, there is always a company out there ruling at the top position. You can use this strategy to determine how much money your rivals are spending on digital marketing and make an effort to match that amount. If you can not reach the number, just start by investing 50-60% of it and increase slowly.

Objective and Task Method

Market research is one of the most sensible methods to decide how much money you need to spend in order to reach your objectives. All you have to do is conduct extensive market research, evaluate the results and decide the budget. The only drawback is startups and small businesses may not have the funding to conduct the kind of research necessary to make it work. However, such businesses can start with Practical Method and then move slowly towards detailed and expensive methods.


With marketing budgets being squeezed more than ever before, creating efficient advertising campaigns with proper budget allocation has never been more important. 

It's time to think outside the box in order to get the most out of your advertising budget and attain the majority of your intended audience. This entails concentrating your company's marketing efforts on the correct channels at the correct time to achieve the greatest results. 

Take into account the techniques and tips in this article to find new digital marketing opportunities that may help you allocate proper digital marketing budgets for your digital marketing services that will help you in your business.

Looking for Affordable Digital Marketing Services?
  • Improve Conversion rates
  • Find Potential Target Audience
  • Amplify Your Search Engine Ranking

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