Do you have an e-commerce site? You do not know how to set up your web marketing budget? Is it worth betting on a budget that is more digital or non-digital? If you ask yourself all of these questions, Websites Are Us will try to find the answers!

Determining the marketing budget for your website: an introduction

Marketing is an essential part of the business right now. Indeed, this is what makes it possible to put key actions in place in terms of communication and customer acquisition. It is important to note that since 2009, this expenditure has never decreased within companies. Indeed, the latter has remained stable or even tends to increase: between 2017 and 2019, the variation is between 7.5% and 8.9%.

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The highest percentage comes from B2C service companies, followed by those selling B2C products. Note that B2C service companies significantly increased their marketing budgets in 2018 compared to the previous year, from 7.3% to 11.8%

Depending on its activity, each company allocates a more or less significant budget envelope for its marketing actions. But in the digital age, this is a budget that must be taken into account in general. The evolution of total budgets in terms of marketing is therefore quite good. If you want to invest in various marketing actions, rest assured, this is the perfect time to do it!

Having a marketing budget is good! But you still need to know how to use it effectively. You can use two channels strictly speaking for allocating your marketing budget:

  • Online marketing: this targets social networks, the e-commerce site concerned or even paid advertising.
  • Offline marketing: we can, for example, include advertising posters, gifts, flyers distributed in the street or even the organization and participation in commercial events.

Obviously, it is advisable to devote a larger budget to online marketing actions, rather than offline. But it really depends on the strategy adopted for your business. In 2018, the average business would have spent 42% of its marketing budget on digital and, according to experts, this rate will increase to 45% by 2020.

Studies from Forrester Research and eMarketer provide other points on the amounts invested in digital marketing:

  • Search engine marketing like Google is the number one expense and online display (banner ads, online videos, etc.) is number two.
  • Video represents the fastest growing category. Planned investments by 2021 will double compared to 2016.
  • Social media ad budgets are increasing with an annual growth rate of 17% between 2016 and 2021, and would represent 25% of digital spending in 2018.
  • The annual growth rate of the digital marketing budget is estimated at 11% for the period between 2016 and 2021.
  • The strongest growth is recorded for online video.
  • Investments in paid SEO (display, social media advertising, video advertising and emailing) will account for 46% of advertising by 2021.

Where to invest your marketing budget? Zoom on 3 channels

Whether or not you are on the networks, you still have to stay in one way or another with your customers and prospects. Here are 3 tools widely used in digital marketing:

The newsletter

Sent by email, it allows you to inform customers about any new features on your e-commerce site, for example. It should be noted that emailing is the key tool for digital communication. Why ? Simply because it allows you to communicate with a wider range of people, and faster. In addition, customers / prospects have the choice whether or not to subscribe to newsletters. This is all the more impactful since only those interested will open the emails sent by the company.

Social networks

It is a fact, more and more people register and use on social networks (see table below). Everyone appreciates finding their brand on a Facebook, Instagram, LinkedIn or Twitter page. Concrete example, on Facebook, you can perfectly allocate a monthly budget to boost the visibility of each of your posts and attract more customers.

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Marketing automation

Its purpose is to automate certain marketing tasks which can be very tedious at times (prospecting, emailing campaign, reminders, etc.). It is therefore a pole to take into account when allocating your budgets. Very often, these are tools that will save you a lot of time, which is never negligible.

Website creation – Personalized price estimation

Websites Are Us has developed a recommendation engine which allows you to obtain a free detailed price estimate as well as a selection of software and providers adapted to your website creation needs.

How much budget to devote to marketing within your company?

The budget that you should allocate to marketing, in general, should be defined according to your sector of activity. Indeed, you will not have the same need depending on your target, your products or your strategy.

  • Your e-commerce site is aimed at companies. So you do B2B (Business To Business), know that you can easily allocate 6 to 7% of your total budget to marketing. This can go through promotional offers, emails or contacts via professional social networks, such as LinkedIn, for example.
  • Your e-commerce site targets individuals, what is called B2C (Business To Consumer). Here, the budget is higher since it is between 9% to 12% of the total envelope that can be given to marketing.
    In general, in recent years, the web marketing budget for e-commerce sites in B2B and B2C have been very constant, no decrease and very little increase

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To define your marketing budget, you must first build a web marketing plan

So we’re going to work out together what an Internet marketing plan is. But first of all, you must know that the web marketing plan is not necessarily different from the traditional marketing plan: it is simply a strategic plan which concerns digital tools rather than conventional tools. There are various elements in a marketing plan such as for example:

  • An analysis of the market and therefore of the competitors
  • Objectives and strategies to implement
  • Action plans
  • Financial forecasts

You must take the time to study your market, your competitors, but also and above all your customers to really know what they need. It is still the only way available today to successfully create a product or services that work and which will obviously bring you beneficial benefits.

There are also three crucial points to consider:

  • Positioning: the objective is to highlight your brand, product (s) or service (s) with your customers, in order to stand out from your direct competitors.
  • Marketing actions: the three essential actions are traffic acquisition, conversion optimization and customer loyalty.
  • The budget: generally, it is a question of defining a provisional budget at the beginning of the year. Thanks to the new tools brought by digital marketing, you can know precisely the return on investment of the actions implemented.

The keystone of a well-organized marketing budget is the adequacy between your expenses and your objectives (visibility, conversions, etc.). You must take into account the different parameters set out in the article (competition, market, business reality) to best modulate it for your activity. Also take into account that there are obviously a number of uncertainties, if necessary make several scenarios.

Download our Excel table to build the web marketing budget of your ecommerce site

The estimated budget is an essential element to build a marketing plan worthy of the name.

When you realize your provisional budget, you must work on assumptions. It just means that you have to imagine numbers based on the results you have had in previous years. Do not hesitate to install a comfortable room for maneuver. Indeed, it may happen that your budget slightly exceeds what you imagined. In other words, it is worth having an increasing budget rather than being too tight.

To this end, Websites Are Us has designed a template for download. You can import it into Excel without any problem and fill in the different fields as desired. We hope you can easily and quickly determine your web marketing budget.

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