Many companies are wondering how much to spend on digital marketing. There are varying competing theories. Companies can spend as much as 20% of their marketing budget on campaigns such as search engine optimization, pay-per-click and social media. Gartner, a leading information technology company conducted a study on how much businesses in different industries spend on digital marketing. The results are pictured in the graph below.
Each company spent an average of 2.5% of their annual revenue on digital marketing. At ST8, we believe this is an accurate measurement of how businesses should be spending their money on an integrated marketing strategy.
With this number comes awareness on how much to allocate toward marketing from your budget. Many people think that marketing is one channel such as PR, advertising or certain promotions. What they fail to realize that all of these, along with digital tools such as social media, e-mail marketing and PPC are different specialized tools that can be used as part of an overall strategy, and each deserves attention to garner success.
Businesses in any industry can benefit from an integrated marketing strategy as long as there are established goals. Goals can differ per industry from customer retention or acquisition, increasing direct sales, improving product awareness or brand management. Any of the marketing tools mentioned above can be used in a targeted way to achieve such goals.
Overwhelmed by the possibilities of integrated marketing? Wonder how it can help your business rise to the top? Contact our team at ST8creative today for a simple consultation!