What Percentage of Your Revenue Should You Allocate to Digital Marketing?

What Percentage of Your Revenue Should You Allocate to Digital Marketing

Marketing is the backbone of any business, as it brings the new business avenues continuously. It is very necessary to keep your company active in adopting various methods of marketing. The reputed digital marketing company in Delhi can guide you through the process of choosing the right path to execute digital marketing for your particular small business.

In the modern digital era, the dimensions and dynamics of marketing are changing drastically. The entrepreneurs can make effective use of communication platforms to stay connected with existing clients, and also for spreading the word about the brand along with the target audience at a larger scale.

Let us Figure out some Meaningful Strategies Regarding the Necessary Budget for Your Digital Marketing Campaigns:

Meanwhile, it is very necessary to derive a precise budget for marketing activities. Especially when it comes to online marketing, you have diversified methods to choose from. Again, your online marketing campaigns through digital marketing services need to be meaningful and result-oriented.

  • Allocation as per the theme of your business:

First of all your online marketing company should be able to understand and digest the theme of your business, the market segment you are targeting, and design with Successful digital marketing campaigns accordingly. This exercise can help you to hit the target properly. At the initial stage, you need to specify your requirements, study the various methods of online marketing services.

  • Consider various practical factors:

While determining the ideal digital marketing budget, it is necessary to consider the following factors:

  • The sector your business is operating in
  • The marketing strategies adopted by your competitors
  • Your expected profit margins
  • Possibility of grabbing the attention of your target audiences through various digital platforms

Digital Marketing Services need to follow a realistic approach while suggesting the best suited online marketing methods for your business. Apart from the availability of the funds, and your willingness to spend on digital marketing, you need to have an in detailed discussion with your online marketing company regarding the feasibility of digital marketing efforts according to the nature of your business.

  • Your successful track record:

The age of your business also matters while deciding on the ideal budget for Online Business Marketing. If you are already established in the market, which successful track record of more than a decade, even a small percentage of your gross profit, say 2 to 3%, can be practically sufficient to attract new customers and find new business avenues making effective use of digital marketing services.

  • The intensity of competition:

The competition you face during the various stages of your business development process can also be an important consideration for deciding on your budget for Digital Marketing. You need to allocate more than 10% of the gross sale of your digital marketing campaigns through the internet marketing company if you require beating competition for every single sale.

Strategic implementation of a sales funnel can help you to analyze the conversion rates. It can also help you to design and execute a practically feasible Lead Management mechanism.

  • Follow the winners:

It is also important to consider what the industry leaders do. Most of the successful businesses across the globe, especially in the developed and developing economies prefer allocating around 40% of their budget for marketing and advertisement. This accounts for an average of 8 to 12% of their overall revenue.

Therefore, as a growing entrepreneur, you need to keep this figure in your mind as one of the winning strategies for your business development. The reputed digital marketing company in Delhi can serve as your strategic partner in designing and implementing multidimensional digital marketing campaigns as per your business, your requirements and your collective business motives.

  • Judgments according to the current stage:

You need to realize what can be affordable for your business according to the current stage of your overall activities. For instance, during the initial stage of your business or even when you are planning to launch a new product, it is necessary to allocate more budgets for Digital Marketing.

This allocation can bring great results as you succeed to establish your brand and attain better customer response. Similarly, when your brand faces competition continuously, you don’t have a choice, and invest a considerable budget on various digital marketing platforms coordinating with your Digital Marketing Services.

  • Spread your wings keeping eyes open:

In order to become a successful entrepreneur and to retain your success on a consistent basis, it is essential to understand that marketing practically drives revenue for you. Therefore, it can be beneficial to keep on investing in digital marketing at the right time and through the right channels.

You need to concentrate on the untouched pockets in the market segments, and bombard with your marketing literature, seasonal discounts, special offers, loyalty benefits, and referral programs and so on. These efforts will surely bring you considerable revenue as you can enhance your customer base reaching out to new prospects.


It is obviously an important task to set the budget for online marketing. At the same time, you need to follow a process to evaluate the results and change the strategies accordingly. As an entrepreneur, you need to understand the importance of working with the internet marketing company to tackle the target audience in a modern way.

Retaining your existing customers and entering into new avenues of business can be possible, allocating an optimal budget for marketing and advertisement when you pour your creativity in a technology-driven methodology.