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What Results To Expect From Online Marketing Campaigns Based On The Money Invested?

Online Marketing - Investment vs. Results

In the top 5 controversial topics in the online field, we find at the top of the ranking, the topic of the budget that a company should allocate to online marketing.

Well, I will tell you from the beginning that there is no fixed rule or magic formula, but let’s take them one by one and see where we end up. Let’s say that your business is newly launched in the online environment and you are faced with the question.

“What budget should I allocate?”

Some would say that for the beginning the amount of $500/$1000 is sufficient, others that without $5000 you will not get results, but an honest answer would be that it depends on you, and here is the time in which you have to put your
mind to the contribution or hire a team that can help you with all these small problems.

In order to start at least one marketing campaign, you need some information to guide you, namely: What is the purpose of the campaign you want to launch, what is the cost of a product/service you want to promote & what is your profit, how many such products/services do you want to sell through this campaign and for how long. If you sell a
product/service with a total value of $10,000, $100 will certainly not be enough for a conversion.

However, if the product/service you are selling has a value of $30, surely the $100 dollars allocated to the campaign should bring you some conversions.

Math Always Helps

Let’s think logically. Your business generates around $10,000 profit/month naturally, without too much hassle.

At the beginning of online marketing with such an income it would be super ok to start with a budget of 10-20%, but here comes the interesting part. After the first 3/4 months of online marketing, with a budget of 20%, your business spent monthly from the $10,000, $2,000, but earned a profit of $6,000/month from marketing.

This means that at the end of the month, your business earned $4,000 more per month compared to the period when there was no online marketing.

Many people are satisfied with this increase and leave things as they are. But why would you do this? Why would you leave a budget of 20% of the initial amount, that is $2,000 monthly, when you could increase the allocated budget and so on to earn even more profit. In conclusion, what I wanted to emphasize in all these lines is that there is no fixed and unique rule for everyone.

The budget for marketing should be chosen according to the results. If your business with $2,000 brings a profit of $4,000, why would you stop here? What would happen if in time you increased the budget to $10,000 monthly and the return would be the same? But if the budget were $20,000?

The idea is that you should allocate a maximum budget to online marketing, as long as it is profitable in the end. In the online environment, there is a somewhat simple rule – you invest money – you make money. Without investments in promotion, you cannot maintain the high level of sales.

Do you have an interesting Digital Project you would like to start building? Reach out to us, tell us about your project & let’s build it together!

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