Digital marketing is a vast world where businesses thrive under a long list of benefits previously not offered by traditional marketing.
The advertising market is quickly growing online, so much so that the total digital advertising costs are expected to reach US$565.20 by the end of 2022. Not just that, the digital marketing industry is also expected to surpass $807 billion by 2026.
With such high numbers, enthusiasts and businesses worldwide are shifting to digital marketing, whether pursuing it as a career or hiring its services.
It can be challenging to stand firm in this competitive world and decide wisely. Whether you are an agency or a self-employed digital marketer, the following guide covers how much to spend on digital marketing or charge as a digital marketer!
How Much to Spend on Digital Marketing?
Calculating digital marketing budgets will be different for startups, small businesses, and established corporations. You should remember that there is no universal budget or formula to create a fixed digital marketing budget since it all comes down to different factors.
For instance, a recently launched product brand will need more marketing than an already popular brand with a large customer family. However, at the same time, keeping a balance between online marketing budgets and other businesses’ needs is also essential.
Similarly, what you want to achieve by hiring digital marketing services also plays a role. Is your long-term plan raising awareness? Selling products? Finding more influencers and connecting with people?
Lastly, you should calculate potential costs covering your overall digital marketing cost. Whether let a digital marketing agency or a self-employed freelancer help you, you can also research and calculate how much to spend on different online marketing tools, like:
- Online advertisements
- Social media marketing (calculate separately for each platform)
- Affiliate marketing posts
- Video Marketing
How to Choose Digital Marketing Pricing?
You should carefully decide how much to charge for digital marketing as a digital marketer.
You will likely receive a monthly check if you work in an office. However, for remote or freelance work, the process of selecting digital marketing pricing depends on various factors, including:
- Work mode: remote or freelancing
- Pricing mode: monthly, hourly, or project-based
- Project’s complexity: easy, intermediate, hard
- Project’s deadline
- Other factors, such as:
- Your expertise (agency’s experience)
- Your company size
- Office expenses
- Employment costs
- Personal costs; profits
- Production expenses, like subscriptions to productivity software, task management software, email marketing, social media automation, CRMs, SEO tools, etc.
- Variable costs for work, like advertisement rates, costs for running ad campaigns, etc.
With so many factors impacting the price, it can be challenging to choose DM pricing. The easier and more effective way is to build your work model while considering all the above-mentioned factors.
For instance, you can start by considering whether you want to charge hourly or project-based. Then, you can set factors that make a DM project fall under easy, intermediate, or hard categories and select rates according to that.
You can charge additional costs if the deadline succeeds the typical working days and eventually includes office, employment, and production expenses. Make additional packages for variable costs, and in the end, add costs for profits/revenue.
Compared to traditional marketing strategies, DM is more cost-efficient and profitable. However, business owners need to be mindful of the costs associated with such a commitment.
Similarly, as a digital marketer, you should also set your rates according to your job’s complexity, availability, and working requirements, covering all the related costs.
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