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How Much Should a Company Spend on Digital Marketing

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Digital marketing is the process of using digital technologies to create, manage and deliver a message that promotes or sells a product or service. It can be used by companies to reach out to potential customers, as well as to track and measure the effectiveness of their marketing campaigns.

While there are many different types of digital marketing strategies, some key costs associated with it include website design, search engine optimization (SEO), web hosting and domain registration, app development, social media engagement, email marketing, and lead generation.

What is Digital Marketing?

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Digital Marketing is the process of creating, managing, and executing a marketing plan that uses digital technologies to reach and engage customers. It takes many forms, including email marketing, social media marketing, online display advertising, search engine marketing (SEM), and mobile marketing.

Email Marketing

Email marketing is one of the oldest forms of digital marketing. It’s a great way to communicate with your customers and keep them updated on your company’s latest products and services. You can send out emails using a variety of email platforms, such as Gmail, Yahoo!, or Outlook.com.

Social Media Marketing

Social media platforms are a great way to connect with customers and build relationships. You can use social media to post about your company’s products and services, share fun videos or images, and build an audience of loyal followers.

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Online Display Advertising

Online display advertising is one of the most common forms of digital marketing. It happens when you place ads on websites or blogs that are viewed by potential customers. You can use display advertising to reach a wide audience quickly and at a low cost.

Search Engine Marketing (SEM)

SEM is the technique of promoting your company’s products and services through paid search engine advertising. SEM is one of the most effective forms of digital marketing because it can reach a wide audience quickly and at a low cost.

Mobile Marketing

Mobile marketing is the use of mobile devices to reach and engage customers. You can use mobile marketing to send out promotional text messages, create apps, or create landing pages for your company.

How Much Should a Company pour into Digital Marketing?

Source: entrepreneur.com

Digital marketing is a powerful way to connect with customers and promote your business. But just how much should a company invest in digital marketing? Experienced IT strategy and marketing executive would advise investing 5% of the total budget or more, and if you for a moment stop and say how your company doesn’t need it, just check who is investing most in marketing and you will see the most powerful companies topping the list.

According to Forbes, companies should put at least 5% of their total budget into digital marketing to see results. However, this figure can vary depending on the size of the company and the type of digital marketing being used.


In today’s competitive market, every business needs to invest in digital marketing to stay ahead of the curve.

However, not all companies are equal when it comes to budgeting for digital marketing; some might be able to allocate a fraction of their budget towards digital marketing while others might need to spend significantly more. Before committing any funds, businesses need to determine their specific needs and goals for digital marketing to make the most effective investment.