The 2023 economy is unsteady, and technology is shifting marketing strategies faster than ever. Determine how much you should spend on marketing and where your money will be most effective this year using this handy guide.
Determining Total Budget Spend for 2023
Before you learn how to calculate marketing budget priority breakdowns, you need to project your total spending. Knowing exactly how much to spend on your digital marketing strategy to maximize results without overspending or underspending can be tricky.
Historically, businesses of all sizes have spent between 3% to 12% of their annual revenue on marketing strategies. But in 2023, you’ll likely need to increase your spending to compete in a tighter market.
According to Deloitte’s Annual CMO Survey, the average marketing budget in 2023 is 13.6%, up almost 4% over 2021 and 2022.
The average marketing budget by industry can vary, especially during a recession. So while some businesses decrease their budgets in a slower economy, it’s the perfect time to break through and grab more market share while the “industry noise” is quiet.
Marketing Budget Breakdown: What needs to be included in a marketing budget?
#1: An Updated, SEO-Friendly Website
The first thing many potential customers see is your website. A good experience can set them on the right path down your funnel; a bad one can scare them away forever.
In 2023, a business without a website is a waving red flag. With every solopreneur and microbusiness building them, you need a professional website that shows users your business is credible.
You can’t take a “set it and forget it” approach to web design. Your website should be redesigned every three years to meet changing design standards, technological advances, and SEO best practices. Google is constantly improving and updating its algorithm, so a site that ranked well a few years ago may no longer make the top 3 (or even the first results page) today.
Here are some things to keep in mind to guide your content marketing budget in 2023:
- Beware of AI-generated content. These innovative tools can help marketers churn out content faster, but Google’s 2022 update prioritizes original content and pushes AI-generated content further down its results page.
- Third-party cookie phase-out. Marketers will need to find new sources of data to replace the gap that traditional third-party cookies provide. While some adjustments should be made, first-party relationships and cohort-based marketing show some real promise.
- Zero-click searches are gaining popularity. You’ve likely already seen those Direct Answer boxes and Knowledge Panels on Google search pages. They help users get answers directly on Google, which can reduce the click-throughs to your site. Try writing more long-tail keywords, adjusting your content strategy, and finding other ways to provide users value that will keep them clicking!
- Growing voice search popularity. More and more users are using voice search features to Google the answers they need. Since we tend to speak differently than we type, SEO efforts and the keywords we prioritize should shift.
#2: Effective Video Content
TikTok did the impossible in 2021 when it knocked Google off the top spot as the most visited domain in the world.
The growth of video marketing is undeniable, so make efforts to include it in your 2023 marketing plan and social media marketing strategy. Fortunately, video strategies come in all lengths and formats, from YouTube marketing to social marketing and live shopping videos, so you can easily include them in even the tiniest marketing budgets.
Here are a few video considerations to help you decide what to spend marketing budget on in 2023:
- Try live videos. Live feeds have transformed from a pandemic novelty into a full-blown brand positioning strategy. Use live videos to showcase products, hold virtual events, real-time shopping experiences, and host Q & As with your followers.
- Optimize video for search. Videos are 53 times more likely to make it to the first page of Google results than other SEO efforts. Use keywords and aim to create videos that fully embrace Google’s basic tenets: relevancy, back-end optimization, and consistency.
- Growth of AR/VR experiences. These innovative technologies are helping brands offer “try before you buy” experiences and unique experiences across industries. Find a way to use them to your advantage.
#3: PPC Ads
PPC has always been a top performer in traditional marketing, but 2023 will be the year of a significant upgrade. Automation and machine learning is improving and, in some cases, surpassing manual bidding strategies.
With better technology, marketers can enjoy faster ad management, pattern detection, and helpful suggestions to improve performance. Algorithms can adjust strategies in real time as it analyzes ad performance. PPC professionals can harness automation to help take your results to the next level!
Here are a few things to keep in mind to guide your PPC and search engine marketing budget in 2023:
- Optimize PPC ads for voice search. Voice search is becoming increasingly popular, so adjust the keywords in your PPC strategy so that you show up at the top of more results pages.
- Optimize images for Google Shopping. Google and other platforms now allow you to search by image rather than text. To ensure your products show up, create a library of clearly labelled images and metadata to get more Google Shopping hits.
- Expand outside of Google. Your PPC efforts can fall short if you focus solely on Google ads. Test the waters with Facebook, Twitter, Pinterest, Instagram, and more – even Reddit and TikTok can help improve your results and expand audiences.
Digital Marketing Services For Any Budget
Our team of web design and marketing experts in Hamilton, Ontario, can help you maximize your marketing budget ROI. Contact us to learn more and get a free cost estimate.
