Average cost of a digital marketing campaign by Best Digital Marketing Agency, Absolute Digital
Updated: Oct 20, 2020
Digital Marketing is an essential part of any business today. To put your brand online so that potential customers are able to better understand your services and products is a surefire way to gain brand awareness and increase your influence in the market.
However, as a business owner, you'll naturally want to spend as little as possible to gain as many returns as possible - In other words, increase your ROI. Chances are if you're reading this, you have already understood the importance of digital marketing for businesses, but how much should you pay for digital marketing?
In this article, we want to address the misconception that digital marketing is expensive, and show you what you are really paying for when you engage a digital marketing agency. But overall, we want to share with you the reasons why we believe that...
...Digital Marketing does not cost, it pays.
An effective digital marketing campaign should make money for your business, not lose it. If it's your first time getting started with digital marketing, many people might warn you that it is very expensive. However, some people might be surprised to know that some digital marketing platforms you can use to create a stronger digital presence are actually free!
Here are some of the most popular platforms you can use to get started with digital marketing, and how much do they generally cost.
Disclaimer: This is a guide meant for business owners to understand more on digital marketing but does not serve as an actual price guideline. Prices in this article are correct as of 22nd August 2020.
Google My Business Listing
Google My Business is a free profile listing that Google provides for all businesses. All you have to do is search for your business name on Google and "claim this business". Once done, Google will verify your office address by sending a verification code and once you've received and entered that code, you will be free to build your profile with a website, contact info, opening hours, address, Google Reviews, Google Maps, and more.
Google SEO is an organic method to increase your website's ranking on Google's SERP. Although this service is free, you will have to have some knowledge and experience on how to correctly optimise your websites such as meta tag, reach, link building strategy, domain authority, and other factors in which Google takes into consideration to determine the credibility of your website.
This method typically takes a long time (9 to 12 months, depending on how competitive your industry is) to see results. To rank on page 1 of Google, you will need a good understanding of the most relevant keywords and how to implement and execute a good digital marketing strategy.
Google SEM is a form of paid ads that allows your business to appear on top spots of Google's SERP. It works by a bidding system where the Cost-Per-Click (CPC) is determined by the demand of each keyword. If more companies are trying to bid for the same keyword, the CPC will increase, and so will the bids.
Generally, each click will cost a few cents, but in some cases, it can go up to $15 per click. This means that each time a user clicks on your Google SEM ad, you will pay Google $15. SEM ad campaigns work by setting a monthly budget and the digital marketing expert will optimise your budget to achieve your campaign objective.
According to this article, the average ad budget you should set aside for your Google SEM campaign is around $9,000 to $10,000 per month. That's excluding the costs of software and analytic tools. However, if you're working with a reliable digital marketing agency with the right knowledge, experience, and tools, we recommend starting with an ad spent of $1,000 to $3,000 per month until you have come up with an effective online sales funnel that is relevant in today's times.
Once you have an effective strategy, you can then scale up your campaign's reach with more budget. We recommend scaling up your digital marketing campaigns as your business grow to avoid having cash flow problems and make sure your digital presence is aligned with your company's growth.
Google Display Network (GDN)
GDN is the most effective way to create strong brand awareness online. This puts your brand, product, or services in front of potential clients with ad placements such as popular websites, mobile apps and more. You are also able to remarket your ads to those customers who have engaged with your ads previously and group them together under "potential customers" because they have shown interest in your ad.
Websites are an integral part of your business's digital presence. Having a captivating website is the basis of high conversion rates. There are free website builders such as Shopify and WIX which serve the basic purposes of a simple website. Alternatively, if you require a customized option, professional websites should set up back anywhere from $500 to $3,000.
The difference in costs would be attributed to intangible assets such as UI/UX design and other improvements that directly affect your brand reputation online. There's nothing wrong to go with the cheapest option but do know the trade-offs between the differences before you engage someone to create your business's website.
Do look out for available grants that may aid your company in digital marketing or web design. This may significantly reduce your costs and propel your business into the digital space faster than your competition.
Engaging a digital marketing partner can be a long and arduous process, somethings confusing too. However, before you decide on your digital marketing agency, remember to make sure that they understand your business and target audience well enough to run an effective campaign. After all, digital marketing is all about targeting the right audience. Your ads will seem relevant and the conversion rates would be higher, thus making your objectives more realistic and achievable.
If you have any doubts that your digital marketing campaign is ineffective, do reach out to us at +65 8892 1290 or drop us an email at firstname.lastname@example.org. Absolute Digital is Singapore's fastest-growing, multi-award digital marketing agency with experience with digital marketing and web design for Small and Medium Enterprises (SMEs).
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