Digital Marketing Tips for Small Business Owner – 2016 Edition

1. Your website better be awesome on mobile – if not, you are losing traffic.

  • In 2015, 68% of Canadians surveyed in this study owned a cell phone. This was up 24% from 2014.
  • 2015 marked the year where more Google searches happened on mobile devices than desktop in Canada (among the USA and other countries)
  • Nearly half of all Facebook users only access Facebook on mobile

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2. Start tracking the return on your investment.

With the incredible amount of information, tools and data businesses have access to, tracking return on investment has never been easier. Yet, so many business owners have no idea what the return of their marketing investment is.

Calculating your ROI: First subtract all of your advertising and marketing costs from the total revenue generated from advertising and marketing, then divide by the total marketing and advertising cost.

3. Dedicate a budget for digital marketing. Your competitors are.

In case you have been sleeping under a rock for the last two years, companies have been dumping money into digital marketing. Simply because it’s delivering a positive return-on-investment (ROI). Two years to five years ago you would of had an early mover advantage. Now you are behind. Your competitors are spending money on Google AdWords campaigns to show up on search engines, hiring employees to manage social media, running Facebook Advertising to drive traffic and sales on websites, investing in ways to improve how high they rank on Google search result pages, and more….

  • 75% of small businesses said their money spent on digital marketing was effective or very effective.

Many small businesses have no established marketing budget. You think you do not need a marketing budget, and you are right. However, if you are looking to grow your business, keep or grow market share in a competitive market, designating a marketing budget should be a priority. The trouble is businesses don’t know how much to spend. The small business administration recommends a budget between 7 and 8% of your gross revenue. We have created a table below showing different annual revenues and marketing investments of 3% to 10%.

Annual Marketing Budget Matrix

Annual Revenue

3%

5% 8% 10%

$250,000.00

$7,500.00 $12,500.00 $20,000.00 $25,000.00

$500,000.00

$15,000.00 $25,000.00 $40,000.00 $50,000.00
$750,000.00 $22,500.00 $37,500.00 $60,000.00

$75,000.00

$1,000,000.00 $30,000.00 $50,000.00 $80,000.00

$100,000.00

$1,500,000.00 $45,000.00 $75,000.00 $120,000.00

$150,000.00

Monthly Marketing Budget Matrix

Annual Revenue

3% 5% 8% 10%

$250,000.00

$625.00/mth $1,041.67/mth $1,666.67/mth $2,083.33/mth

$500,000.00

$1,250.00/mth $2,083.33/mth $3,333.33/mth $4,166.67/mth
$750,000.00 $1,875.00/mth $3,125.00/mth $5,000.00/mth

$6,250.00/mth

$1,000,000.00 $2,500.00/mth $4,166.67/mth $6,666.67/mth

$8,333.33/mth

$1,500,000.00 $3,750.00/mth $6,250.00/mth $10,000.00/mth

$12,500.00/mth

Other Articles for Small Business Owners in 2016

https://www.inc.com/springboard/5-ways-to-succeed-with-digital-marketing-in-2016.html
https://smallbiztrends.com/2016/01/yelp-small-business-pulse.html