How To Plan A Digital Marketing Budget For Your Company

I wish it were that easy to give a blanket or generic answer to this question we get almost all the time from prospective clients or C-level executives. It is not, there is no one-size-fits-all answer for how much digital marketing costs.

The cost of digital marketing is not fixed because it depends on a lot of variables. In this post, I will try to give some insight into these variables involved such as the platforms to be used, the duration of the marketing campaign, marketing automation tools, and estimate for you as a business owner or C-level executive a range of costs for each one as we go through the different platforms via which digital marketing solutions are deployed. With this insight, you can decide what to budget in line with your marketing goals and what your company can afford to invest in digital marketing as well as keeping in mind that if you’re going to engage a professional digital marketing agency, there is also the service charge for execution of the task.

What Is The Digital Marketing Goal?

Before any discussion about the budget comes to the table, the digital marketing goal and objective of the company and organization should be clearly spelled out. There are different reasons why digital marketing is employed by businesses and organizations. The goal could be to increase sales, increase brand awareness among your target audience, generate more quality leads, remarket your products or services to people who have engaged with your brand online in the past. Whatever the goal is, there is a digital marketing solution that would be a perfect fit.

It is also possible that you might have all the objectives listed, in that case, the digital marketing solution, you or your organization would have to opt for is what we refer to as Integrated Digital Marketing. (More on this later)

 

What Does Social Media Marketing Cost?

The average cost for an Agency to manage your Social media pages can range from NGN100,000 and above depending on:

1. The Number of Social Platforms:

Would you like to be on Instagram, LinkedIn TwitterFacebookPinterestYouTubeSnapchat, etc.; or only a few of them? Ideally, your business or organization should be on the platform where your target audience is. In otherwords, you don’t have to be on all social media platforms.

2. The Frequency of Posts:

Would you like to have a post daily, three posts per week or even three posts per day? It’s totally up to you, however, a agency with a social media strategist can suggest an ideal post frequency that suits your brand and  business goals so you’re not overposting or underposting.

3. The Origin of Posts (Content Creation):

Will the Agency be developing image posts, videos, GIFs, or will the Agency be only responsible for the post copy (text content of the post)

4. The Scope of Work: 

Do you intend for the agency to be involved in your social community management?

It must be noted that this does not include media cost that mostly goes to the platform owners for advertising and post sponsorship. Nor does it include the fee for Influencer marketing. Those will have to be treated separately and budgeted for accordingly when the need arises.

The cost of engaging an influencer is largely based on the popularity, content engagement or brand equity of the influencer and the scope of work required. It can range from N20,000 to N300,000 per post and can go as high as 1.5 million naira if the Influencer is brainstorming and  creating the content for you.

For Social Media advertising costs, you can budget an average of $0.50 per click for Facebook; $0.80 for Instagram, and $2.50 for LinkedIn.

What Does Email Marketing Cost?

The basic cost of email marketing is divided into two;

1. Email Marketing Software Cost – Your email marketing software is the main engine behind email marketing and every business needs a reliable software to run email marketing campaigns. There are several email marketing software solutions but the average cost can range from $9 and above for 1,000 contacts. However, as your email contacts increase, so will your software subscription cost.

Also, there will be a consequential increase if you would like to move your email marketing a step further to marketing automation, A/B Testing etc.

2. Email Content Development Cost – while the software is the engine that runs email marketing, the content is the lubricant that ensures the engine moves accordingly. Good content with a great headline will dramatically increase your email open rate and ultimately your click-through rate. You can budget an average of N250,000 per month for email marketing content development. This can get you an average of 4 email campaigns and tad bit higher if this includes email sequences which is an important part of marketing automation.

Good content for each email campaign will include:

  • The email copy
  • The title (Headline)
  • The Call-to-action
  • The Preview text

 

What Does Google Advertising Cost?

Google Advertising is divided into two:

  • Google Search Network that shows text ads or call ads when someone searches Google for keywords relevant to what you’re advertising for as a Business.

Google Search Ads

 

  • Google Display Network which shows graphic Ads across several websites that allow for display advertising on the websites. The image below is an example of display advertising. Where a business can buy adspace to showcase their products or services on a heavy traffic website.

 

The average cost-per-click (CPC) for Google display network ranges from $0.40 – $1.20 while the average cost per click (CPC) for Google Search Network is $1 – $5 depending on the keywords you are bidding for, the industry, the location, and the google optimisation score.

As earlier mentioned, in addition to the media budget, you will need to pay the Agency you are partnering with for the PPC Management. PPC Management fee is charged usually at a percentage of the Ad budget, while the agency could also have a base fee per the packages they offer.

The fee charged for PPC management can range between 10% to 25% of the Google Advertising budget depending on the relationship between the Client and the Agency and the amount of work required and the ad budget.

On the average, small businesses spend around $1,500 a month on Google Ads. Regardless, a custom advertising plan using the google ad platform can be designed for businesses.

 

What does Website Development Cost?

The cost of developing a good website in Nigeria costs between N200,000 and N1,000,000The actual cost of the website will depend on the following variables:

1. Will the website be developed from scratch or is the developer using a template?

2. Will it be an E-commerce website or an informational website?

3. How many pages will the website have?

4. Will SEO be implemented on the website?

While some people generally advertise that they can build a website for N20,000 (Twenty Thousand Naira), the quality of that kind of website can certainly not be compared to professional websites.

Do note that the cost of developing a website does not include the cost of buying the domain name, the hosting, and SSL. Your domain name is your organisation’s address on the web while the Hosting is the container that holds the domain files. This is where the website will be seated.

All organisations need a domain name to have a website. Your domain name is www.yourcompanyname.com. Both the domain name and hosting are usually provided by a hosting provider like Siteground.com Hostgator.comGodaddy.comwhogohost.com etc.

The average cost of a domain name can range from $9 to $15 depending on the kind of domain name. In some cases where the domain has been parked (bought by someone else who is willing to resell), the domain name can sell for as thousands of dollars. Furthermore, some domains are also classified as premium and command a higher fee than the average domain cost.

While the cost of building a website is a one-off cost, you will need to renew your domain and your hosting annually. This fee will need to be paid to your hosting provider.

In some cases where the business does not have a dedicated Brand/Marketing Manager or Writer, you may need to pay for Website Content Development as your website needs good content to communicate your brand equity and generate leads for you. This cost can be included in the website development cost if discussed at the inception of the project.

Once the website has been completed and handed over to the organisation, there is a need for the organisation to retain the services of a website Administrator to manage the website continuously. This person will be responsible for updating plugins, updating content, publishing posts, etc. This person needs not be a staff, he/she can be a freelancer or an Agency that manages websites.

The website developer can also be retained as the Website administrator but will need to be put on a monthly retainer for this as the cost of building a website does not include continuous website management.

 

What Does Search Engine Optimisation Cost?

This is perhaps the most straightforward one. The average cost of optimising 10 keywords is between N100,000 and N300,000. This includes both the on-page and off-page SEO which covers listing, meta tags, PDF submission, Social bookmarking, article promotion, etc. As the number of keywords increases, so does the cost.

It is important to understand that organic SEO is a long-term project and requires between 4-6months of constant work to rank selected keywords. This doesn’t mean that work stops after 6 months, organic optimisation requires consistent work to reach the first page and stay there.

 

Now that you have been introduced to the various elements of digital marketing and their cost as stand-alone platforms; the next question is whether you have the personnel in-house to achieve the goal…and you may then wonder what the cost of getting an Agency on retainer to provide integrated digital marketing services covering all platforms relevant for your brand will be?

 

What Does Integrated Digital Marketing Cost?

As previously mentioned above on Integrated Digital Marketing, while it is true that individual digital advertising platforms can be great to reach your target audience, Integrated Digital Marketing is a much more better way as it is more holistic in approach and it will definitely bring the best value out of your digital marketing campaign. Our candid advice to you would be that your business employs integrated digital marketing which uses the integrated approach to create brand awareness, engage with your prospects and target audience, generate quality leads that convert, and build brand equity.

For example, you want to incorporate Blogging, Social media, Google Ads, Email Marketing, Marketing Automation, Search Engine Optimisation, etc. for your brand.

In this case, you will need an Agency that will dedicate a team with experience in the different areas of digital marketing to manage your brand. Businesses sometimes make the mistake of hiring one person to perform all digital marketing roles – Content development, design, website management, PPC Management, SEO, ecetera.

The average cost for full strategic digital marketing monthly retainership fee could range from N700,000 – N5 million depending on the scope of work and the number of personnel required to implement it.

In addition to the Agency retainership fee which is paid monthly, you will need to set aside a media budget for third-party platforms like YouTube Ads, Google Ads, Facebook Ads, Instagram Ads, Yahoo Ads, etc.

You will also need to set aside a budget for marketing software as these are the tools required to implement your digital marketing strategy. While there are different software for the different aspects of digital marketing, there are also several full-stack marketing software that covers all areas of marketing and one subscription will take care of your email marketing, Landing page, Chatbots, SEO, PPC, etc. An example of this is HubSpot.

The average full-stack marketing software costs between $250 to $5000 depending on the platform, the number of contacts, the number of users, the capability of the platform, etc.

 

Let Us Wrap Up With The Advantages of Digital Marketing

You Have Budget Flexibility – While the costs for the various platforms have been listed, it is important to note that you can decide how much to spend on digital marketing as the budget is very flexible. You can program your Facebook Ads to run for $50 and once the budget is exhausted, the Ad stops. This gives you the opportunity to test ads and scale unlike what you have in traditional forms of advertising.

Access To Real-Time Analytics – You can also get real-time analytics which tells you which platform is doing great and which campaign needs to be fine-tuned or closed.

It Is Not Dependent on Company SizeImplementing Digital Marketing is a fantastic marketing decision irrespective of the business size and industry as it has varied platforms and tactics. A one-man organisation can implement digital marketing just like a large corporation can.

Looking for help with implementing digital marketing for your organisation? Book a free consultation with any of our consultants to learn how your brand can create awareness, engage with prospects, and generate leads.

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