What is the cost of digital marketing? This is a common and understandable question from businesses.
When deciding if digital marketing is good for your business, the first question that comes to mind is “How much does digital marketing cost?” In this post, we’ll look at actual numbers to assist you to figure out what type of budget you’re looking at.
Table of Contents
- Cost of Digital Marketing
- Variables That Determine Digital Marketing Prices
- How Much Should a Company Spend on Digital Marketing?
1. Cost of Digital Marketing
You came here looking for an answer, so let’s start with some hard numbers and go back to explain how we achieved them.
A typical business in a typical sector should devote at least 20 hours per month to digital marketing. If the company operates in a competitive industry, such as lawyers or dentists, it will most likely need to increase its marketing budget. If they operate in a highly competitive geographical market, such as Florida USA, they would most likely need to spend more time marketing than companies in smaller cities. To rank for several places, states, nationally, or even worldwide, you must spend much more time.
If your present website is in poor condition or you are a new business, you will most likely need to spend more money on marketing than someone who is currently ranking on the second page but wants to be on the first page.
If your present website is in poor condition or you are a new business, you will most likely need to spend more money on marketing than someone who is currently ranking on the second page but wants to be on the first page.
Most digital marketing businesses charge between $80 and $200 per hour. If we assume 20 hours per monthly marketing project at $100 per hour, an average service will cost around $2,000 per month.
2. Variables that Determine Digital Marketing Prices
The following elements contribute to the wide variety of digital marketing pricing.
- The niche/market you are in.
- Your location.
- How competitive it is.
- Your timeline for getting results.
- Where you currently stand in search engine ranking.
- How well your website currently converts?
How the niche/market you are in affects price:
The pricing and conversion rates charged by an ad network are impacted by the niche/market you are in.
A typical bail bonds company, for example, will spend an average of $58.48 per click on Google Ads. A pest control company, on the other hand, would spend an average of $38.84 per click on Google Ads. A bail bond company would have to pay more than 50% more to achieve 1000 clicks per month from their ad budget.
Conversion rates change depending on the market. A typical landing page for higher education, for example, converts at 2.6%, whereas a landing page for vocational courses converts at 6.1%.
To achieve the same number of conversions each month, a higher education provider would need to bring nearly 134% more traffic to their website.
How your location affects price:
Both organic SEO and PPC pricing may be affected by your location. An injury law firm in New York City will often face more competition than a law firm in Cheyenne, Wyoming. The increased competition may raise the price that ad businesses charge to create a click, and the increased number of law firms attempting to rank first in search engines may make attaining the objective a more work-intensive effort.
How competitive your market is can affect the price:
The competition in your market might also have an impact on price. In our experience, some markets do not generally invest as much in digital marketing as others.
If you want your knitting website to be number one in your city, chances are you won’t find many other knitting companies investing in major marketing efforts.
Alternatively, Mesothelioma digital marketing activities are among the most competitive.
How the timeline can affect the price:
If you need to get results immediately, sponsored advertisements may be the best option. You’d essentially be paying for website traffic. Ads can drive website traffic quicker than boosting organic search engine rankings.
Additionally, devoting more time to an endeavor will result in faster outcomes and a price increase.
How your current search engine results can affect the price:
Do you presently rank for the search phrases for which you wish to be found? Is it page 1 or page 10? Your present position in search engines will serve as a starting point and affect the amount of effort required to get #1. If you aren’t even ranking for the search keyword, you may need to create content and/or improve your existing website.
How well your website currently converts visitors will affect the price:
Is your website capable of converting visitors into paying customers? Increasing the number of visitors to a website that does not convert into customers can be a waste of ad spend and SEO revenue. Before focusing on increasing traffic to your website, you may need to improve your existing website, such as the content, so that it converts visitors to buyers.
3. How Much Should a Company Spend on Digital Marketing?
The following are questions that we ask all of our customers to assist them to determine what their digital marketing budget should be in order to be effective.
Digital Marketing Questions for Your Business
What are your goals?
Your goals should clearly define what you require, which will assist a marketer in developing ideas for what services will be required. Digital marketing services range from SEO to PPC management, social media, and email campaigns.
What makes your business stand out?
A marketer, like you, has to know your business inside and out to better maximize it online. Knowing what makes your company unique, or your unique selling proposition (USP), will help you be more successful both offline and online.
What are you doing offline?
Small business owners understand the need of balancing online and offline marketing and techniques. If nothing is happening with your conventional marketing efforts, it may be necessary to double the workload and cost of your online marketing efforts to achieve the same result.
Who is your competition and what are they doing?
Every online marketing plan should include a thorough overview of the competition. A seasoned Florida digital marketing team can provide you with an idea of what would be required to be truly successful in your area by evaluating the competitors. A law firm in Florida, for example, will have far greater competition and marketing efforts to remain competitive with the other lawyers in town than, say an attorney in Miami.
What platforms are your customers on?
Different marketing platforms entail a broad range of prices. If your clients are only searching, that’s excellent, but PPC advertisements may be required, and the cost of animated movies for content development may be different as well. It’s essential to know which platforms are available to you and which ones your target audience uses.
How are you going to measure success?
Sales are typically used to measure marketing success. You must inform your marketing staff of your sales objectives and keep them up to current on this information at all times. Interpretation of the data is a huge component of a marketer’s job and might take hours or days to complete. The more time and effort put into data analysis, the greater the expenditures, but they are also proportional to your better sales profits!
If your annual sales are less than $5 million, the U.S. Small Business Administration recommends spending 7% to 8% of your gross income on marketing.
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Hopefully, you now have a better knowledge of the cost of digital marketing. Contact ARF Services at +92 (309) 514-8449 or schedule a free consultation to go over your digital marketing needs.
