A simple way to define your digital media budget
150,000 CHF seems like a fair amount to invest in a digital campaign. However, the impact will depend on many factors. A budget of 150,000 CHF, yes, but for how long – a month, a year? Where – in Switzerland, Lausanne or New York? On how many platforms? Facebook and Instagram or only Youtube? What about the number of languages and set of banners?
The answers to these questions determine if 150k is a lot, just enough or small peanuts that won’t get you far. Let me show you a little trick to calculate your digital media budget in a simple and intuitive way so you feel more comfortable with your digital marketing investment.
Lausanne VS New York
Let’s play a little game. Imagine you want to launch a brand awareness campaign in Lausanne with a media budget of 150k. The city’s population is 150,000 people. Assuming the cost per 1000 people reached is CHF 150, we can reach the whole city.
Now let’s take New York. With the same 150k and a population of nearly 9 million people, the proportion of people you’ll actually reach is derisory: 1,6%.
The difference is huge. It seems obvious that you need to adjust the budget based on the target area, but you’d be surprised how many people we meet who don’t do the math correctly and stay focused on the money instead of looking at the big picture. In short, always start with the impact you are expecting and go from there.
B2C leads VS B2B leads
Leads are to your business what fuel is to your car. However, be careful not to confuse a lead with a client, as many people make this mistake. Leads are essential to getting your business off the ground and are the starting point for calculating your budget. To get the full picture of sales conversion and understand how to allocate your resources, organize your sales teams and plan; you need to know how many leads you need to reach. Leads have different costs depending on the field you operate in. If you’re working in B2B, the cost of a single lead is between CHF 500 and CHF 1500. In the B2C sector, a lead costs between CHF 50 and 500:
- In the B2B sector, this means that with your CHF 150,000, you can get between 100 and 300 leads.
- In the B2C sector, you will get many more leads because they are cheaper. You can expect 300 leads at the lowest and 3000 at the highest.
Of course, to determine if these numbers are high or low, we need to take a closer look at your revenue, the number of employees, and the average price of your services or products. However, this gives you an idea of what you can expect in Switzerland with a budget of 150,000 CHF in both sectors.
Keep in mind that you will also need additional costs to maintain your leads and convert them into sales.
The common trap
Be careful not to make the popular mistake of underspending! It will get you nowhere. You’ll waste your money on a campaign that almost no one will watch. In this article, we tell you all about how to make an impact:
- The correlation between budget, visibility and impact
- How to stay in the impact zone
- Understanding your industry benchmarks
Obviously, once you’ve generated leads, you need to think about how to convert them into sales… and that’s the most challenging part for all of us! It’s not enough to attract them, you have to carefully catch and nurture them to build meaningful relationships. A combination of inbound and outbound marketing is very effective. This article tells you the difference between the two techniques so that you have a clear idea of how to interact with your prospects throughout the sales funnel.