As the world of marketing continues to evolve, so does the need for companies to adjust their advertising budgets accordingly.
With more and more businesses turning to digital marketing in an effort to reach their target audiences, it’s important that you know how to split your advertising budget in 2023. In this article, we’ll be taking a look at what percentage of your budget should go towards traditional and digital marketing so that you can make smart investments for maximum ROI.
Traditional Advertising Today
There’s no question that advertising is evolving. With the advent of digital media, companies are increasingly allocating larger portions of their budgets to online advertising and away from traditional mediums like television, radio, and print. But that doesn’t mean traditional advertising is dead. In fact, there are still many reasons to allocate some of your budget to traditional mediums, especially billboard advertising. Let’s take a look at a few:
• Traditional advertising still reaches a large audience. While more and more people are spending time online, there are still plenty of people who consume traditional media. In fact, according to Nielsen, the average American adult spends over 11 hours per day consuming media across all platforms. That’s a lot of potential eyeballs for your ads. So you’d better find out how much is a billboard in Times Square and calculate whether you can afford it.
• Traditional advertising is often more trusted than online advertising. Because people have been exposed to traditional advertising for so long, it has more credibility than its digital counterpart. A study by Nielson found that 70% of respondents said they trusted TV ads, while only 41% said they trusted online video ads.
• Traditional advertising can be very effective. Don’t discount the effectiveness of a well-executed TV or print ad campaign just because it’s not digital. If done right, these campaigns can reach a large number of people and generate significant results.
How to calculate and split your advertising budget
There are a few different methods you can use to calculate your advertising budget. The most important thing is to make sure that you are allocating enough money to cover all of your costs while still leaving room for profit.
One method is to start with your total revenue goal for the year. From there, you can break down how much you need to spend on each type of advertising to reach that goal. For example, if you want to bring in $100,000 in revenue, and you know that Facebook ads typically cost $0.50 per click, you would need to budget for 200,000 clicks on Facebook ads ($100,000 / $0.50).
Another method is to start with your total advertising spend for the year and then break that down by month. This can be helpful if you have fluctuating costs or if you want to make sure you don’t overspend. For example, if you have a $1,200 monthly ad budget, you could break that down into $300 for Facebook ads, $300 for Google AdWords, and $600 for other forms of advertising (banner ads, print ads, etc.).
Once you’ve calculated how much money you need to spend on advertising each month or year, you can begin allocating your budget across different channels. Be sure to consider both online and offline options, as well as paid and organic methods of marketing.
What Percentage Should You Spend on Traditional Advertising?
There’s no set answer for how much of your advertising budget you should spend on traditional advertising, as it depends on a number of factors such as your industry, target market, and objectives. However, as a general rule of thumb, you should allocate around 20-30% of your total advertising budget to traditional channels such as TV, radio, print, and outdoor advertising. This will ensure that you have a well-rounded mix of both traditional and digital marketing tactics working in tandem to reach and engage your target audience.
How Much Should You Spend on Digital Marketing?
Digital marketing is one of the most important investments you can make for your business. But how much should you spend on digital marketing? The answer to this question depends on a number of factors, including your business goals. If you’re just starting out, you may want to invest a smaller percentage of your budget into digital marketing and use other methods to reach your target audience. As you grow, you can increase your digital marketing budget and use more sophisticated methods to reach and engage your audience.
Here are some general guidelines for how much to spend on digital marketing:
• If you have a small business with a limited budget, you should spend 10-20% of your total advertising budget on digital marketing.
• If you have a medium-sized business, you should spend 20-30% of your total advertising budget on digital marketing.
• If you have a large business with a significant advertising budget, you should spend 30-50% of your total advertising budget on digital marketing.
Remember that these are just general guidelines – ultimately, it’s up to you to decide how much to spend on digital marketing based on your specific needs and goals.
With so many options available to marketers today, it can be difficult to decide how to split your advertising budget. However, by taking the time to review your current and future goals, identify which channels are most effective for achieving those goals, and understanding the strengths and weaknesses of each channel, you can create an effective plan that will maximize return on investment in 2023. With a well-defined strategy in place, you’ll be able to focus more energy on crafting engaging campaigns that bring results.