Budgeting Estimates For Digital Marketing – B2B Full-funnel Strategy
In an earlier video, Paul, a marketing & demand generation expert, shared his Digital Marketing Framework approach. In the video below, healthlaunchpad CEO & Founder, Adam Turinas, engages him for valuable insights on Digital Marketing Budgeting for B2B full-funnel marketing strategy
Digital Marketing: Exploratory Budgeting Estimate – $5,000 – $10,000
Paul recommends that you allocate about $5,000 to $10,000 as an exploratory budget.
This should be sufficient to get indicative insights about the ability to acquire your audience through paid search and social, what messages will work and channels that will be most effective.
This is will enable you to determine how to invest against success.
Growing Your Investment – Converting Opportunities Into Business
In the video, Paul points out the importance of you cost-effectively acquiring a consistent stream of leads and converting opportunities into business, while growing your investment against that success.
Factors Affecting Digital Marketing Expenditure
For B2B technology companies, Paul explains that your digital marketing budget will be determined by the number of companies you can sell to.
For instance, if you have about 200 potential companies, and those are the only companies in the world that you can sell to, it is very unlikely that you will spend millions of dollars against the 200 companies.
If however, you have a product or service that appeals to say, 400,000 companies, you can invest a lot more. This, as Paul explains, is because scaling up is much easier.
Expenditure Estimates For B2B Tech Companies.
B2B Technology companies are known for their complex sales cycles making their expenditure estimations difficult for many B2B healthtech marketers.
In this video, Paul provides the estimated digital marketing expenditures for B2B tech companies. As a marketer, this estimate can guide you when planning for your organization’s monthly digital marketing budget.
He explains the factors that influence the total expenditure of B2B Technology companies as below:
1. The Niche Product You Are Selling – $5,000 to $10,000 Per Month.
If you have a special niche service or product that you are selling, you could require a monthly budget of $5,000 to $10,000 for your digital marketing. This will cover all the expenses from niche to your target consumer.
It reaches a point when you will start noticing diminishing returns from your investment. This will be an indication that your expenditure is above the most cost-effective level.
2. Product or Service Popularity – $100,000 to $500,000 Per Month
If your product or service works well for hundreds and thousands of companies, you can spend from $100,000-$500,000 per month. You can spend an infinite amount, and it could still be profitable for your business.
Paul’s Important Tip: Analyse Constraints on Efficiency Before Increasing Investments
Do not look at your digital marketing expenditure as spending X amount of money because you can.
Instead, you should spend as much money as you can as long as it is meeting your constraints on efficiency.
Paul notes that most companies do not focus on efficiency. So long as they receive a specific amount of return on their investment, they can spend infinitely.
Budgeting for Digital Marketing – General Trend: The more companies you can sell to, the more likely it is, or the more of a need for an additional budget you have.