How much do companies invest in digital marketing in Canada? Much is said today about digital marketing, its importance, functions, services that comprise it, means to use, and even the cost of each product has been touched. However, a frequent question companies face, especially those in their infancy, is how much of their budget to allocate to pay for digital marketing expenses.
If your business is starting, you may not have a large amount to spend in this area. However, the first step is not to see this as an expense but as an investment.
An investment that will boost your business with which you will go from being non-existent to being recognized thanks to the visibility and positioning offered by advertising resources.
Why invest in digital marketing?
The world of advertising and marketing has been changing over time.
Although traditional media (advertising in the written press, radio, television, billboards) are still in force, the digital age has brought a series of accessories that allow not only to diversify the market but also to have many more options to implement.
The products applied in digital marketing are designed to make you known and make you visible among a sea of brands in your field. The most coveted objective is to increase sales.
According to the needs of each business, each applied strategy can increase your reach to customers since, thanks to the digitization of marketing. We can access an audience regardless of where they are in the world, age, or gender.
Digital marketing also allows the possibility of knowing the personal interests, data and values of how all that is applied is responding and analyzing what works and what does not, so you can determine what to improve, what to stop doing and what to implement.
Thus, something that also changed drastically was the way of relating to clients or the public, since in digital media, you can interact directly, giving concrete answers and personalized attention.
Digital marketing plans for Canada are flexible.
Many companies that offer advertising services have the ability to adapt to your needs, therefore if your business or company is small or in its infancy.
They can offer you services to start with the necessary strength and boost you.
For all of the above, investment in digital marketing has become necessary today for the simple fact of being up-to-date at the forefront of advertising and achieving the basic objectives of visibility, position and sales.
How to calculate our investment in digital marketing?
At this point, we must start by emphasizing that applying digital marketing strategies for your company is an investment, not an expense.
Another point is to remind you that each business is unique, with its own needs and objectives and the design of the digital marketing plan that is right for you will depend on this, and consequently, the costs will start from here.
If you got this far, it is also important to know that the most common and requested products in digital marketing are:
- Website creation.
- Logo design.
- Content creation.
- Social media management.
- SEO Consulting.
- Virtual assistant.
- Online advertising.
- Email marketing.
Each one, in particular, has its cost, but what is relevant here is to know which one is ideal for your company, and from there, you will be able to calculate the level of investment accurately.
Different variables will determine how much should be invested in advertising. Still, the usual thing is that it varies from 1% to 30% of the sales revenue that a company has.
But let’s know the aspects to take into account to make our budget more precisely:
Brand or business lifetime
Here we refer to whether it is a new business or brand or already has a track record and validity.
If it’s new, your investment should be higher. Around 20 and 30 percent of your income in the first months or year. All while you achieve visibility and positioning.
Speed in results
In this case, we talk about the rush with which you want to see results.
If you want to obtain the best results in a short time, you must invest a lot. For example, your investment should be around 30% to 50%. On the other hand, if there is no hurry, your investment can be lower, between 2% and 5%. However, this takes much longer to see results.
This data is not surprising. After all, our investment will depend on the volume of sales or our income. According to these, this may also vary between 7% and 12%.
It is necessary to measure or determine the level of competition in the sector of your field.
If it’s high, many businesses or brands are offering the same product or service as yours. As a result, you will need to invest more in advertising.
If your product isn’t as popular as other brands, you won’t need to invest as much.
In these cases, the initial investment is often around 5%. As the marketing plan progresses, adjustments are necessary to increase or maintain the amount.
What you offer
Here it will depend on whether you offer a specific product (clothes, footwear, food, etc.) or a service. You will have to spend a lot more when it comes to products. After all, the goal is to encourage and be visible. This will allow you to encourage customer acquisition and sales frequently.
In the case of services, you will need to invest a little less. This is because the need for a service is usually periodic. In fact, a percentage between 2% and 5% can be considered admissible and appropriate in these cases.
The quality of the advertising type you use will also determine the percentage of investment. After all, the more products you add (graphics, images, design, jingles, videos, etc.), the greater or lesser scope you will have. As a result, you will have to spend between 25% and 70% on digital marketing.
The higher the quality we want to obtain, the higher the amount we should use.
You may not get the results you want as soon as you want. However, this doesn’t mean it doesn’t work. In this case, you should only evaluate and correct the strategies hoping for an improvement.
To finish, remember that you want to achieve the goals set for your business by paying money for advertising. These, in turn, will translate into a return on investment in the future.