Putting together a marketing plan that makes the best use of your budget is significant in today’s dynamic digital landscape. Allocating your resources effectively for a successful marketing strategy increases brand visibility, and drives qualified website traffic and online sales substantially—translating to higher returns on your investment.
Read below to learn more about how you can optimize your budget to market your eCommerce platform successfully.
How to Determine Your Marketing Budget
Before moving forward, understanding what a marketing budget is can help you set one for your business’s success.
A marketing budget is a financial plan outlining the costs involved in implementing customer awareness, and conversion campaigns over a specific period, in order to either improve your image or generate sales. As such, it’s important to include it in your company’s overall budget.
Examples of Marketing Budget Approaches
Setting a clear and well-defined marketing budget is the cornerstone of a top-notch eCommerce strategy. With it, you can gain a high return on investment in your business. However, your marketing budget amount entails more than just allocating funds; it’s about considering how marketing is one aspect of your many business activities, and how you balance all your costs dictate the trajectory of your company’s long-term success. As such, you must determine which approach best fits your business objectives.
- Percentage of revenue method: This approach is a widely used one, wherein you designate a certain percentage of your revenue for marketing purposes.
- Competitive analysis: Look into industry standards and gauge your competitors’ marketing investments in order to determine your own.
- Objective and task method: You must outline your marketing objectives and allocate budgets based on the tasks needed to achieve them.
The Importance of Market Research for Marketing Budget
After determining your marketing budget, you must then conduct market research. Understanding your customers and market trends can help you identify the scope and strategies for a winning marketing plan. Here’s how you can conduct market research:
- Implement customer surveys for feedback
Direct insights from your audience provide invaluable data that will aid you in choosing the best marketing strategies. Use surveys and feedback forms to understand their expectations, preferences, pain points, and touchpoints (where, what, when they are exposed or interact with your products, or consume media). You can even utilize this information to help you craft effective customer loyalty programs that your audience will enjoy. - Conduct social media listening
Leverage social media platforms to monitor conversations around your brand and industry. This goldmine of data will help you see where your business stands, and how to refine your marketing strategy to get you to your ideal state in identity, availability, and sales. - Utilize Google Analytics and trends
Research tools like Google Analytics can help you better extract insights from your data, especially if you’re handling a large set. Additionally, they let you track user behavior, website traffic sources, and popular search queries more efficiently. From here, identify patterns and adapt your strategy accordingly.
7 Ways to Optimize Your eCommerce Marketing Budget
Navigating the complexities of an eCommerce marketing budget is a strategic undertaking that demands precision, more so as you optimize it. As this task will be challenging to do, consider the following tips to ensure your marketing budget delivers maximum value and increases your eCommerce sales:
1. Create targeted and compelling ad campaigns
Having an in-depth understanding of your target market can help you align your brand’s messaging with the local scene. With it, you can craft culturally resonant ad campaigns that will capture the local audience’s attention. If you have a local artisan chocolate brand, for example. Instead of just selling common flavors, like milk, dark, and white, you can use local Filipino flavors, such as calamansi or green mango, to enhance your desserts.
Consider incorporating local customs, celebrations, and holidays into your marketing efforts. For instance, aligning your campaign with major Filipino festivals or events can significantly enhance its appeal. That green mango chocolate bar can potentially be a hit during the Manggahan Festival in May. It can help you sell seasonal products that are relevant to the festivities, ensuring your budget maximizes its impact.
2. Optimize website and landing pages for conversions
A user-friendly interface with an optimized website for local preferences and behaviors offers a seamless online shopping experience. With about 92% of online shoppers using their smartphones to complete transactions, you should develop a mobile-friendly website that loads quickly at varying connection speeds.
Moreover, you can encourage customer check-out by offering convenient payment options like GCash or Maya. These optimizations not only improve conversion rates but also maximize the returns on your marketing investment. Reach out to an online store builder if you need help optimizing your website for the local market.
3. Be strategic with your collaborations
One study notes that 70% of Filipino shoppers typically buy a product due to a trusted influencer’s recommendation. So, consider partnering with local businesses or influencers who align with your brand. You can also collaborate with them on local holidays or event promotions to expand your campaign reach and impact.
4. Know where to reach your audience
In amplifying your reach, you must understand where your target audience spends their digital time. In 2022, Facebook took the top place as the most-used social media platform in the country. You can focus your efforts on this platform to help you optimize your marketing budget. But are your target audience there? With local market research or analytics tools, you can pinpoint the channels where they are and redirect your strategies.
5. Leverage user-generated content
User-generated content (UGC) is a great way to optimize your marketing budget, especially in a country wherein 91% of shoppers trust product recommendations from people they know. That said, encourage customers to share their experiences with your products. This strategy builds trust and a stream of authentic marketing content.
You can effectively use UGC by running contests or campaigns that incentivize users to share their stories, creating a vibrant community around your brand. More than that, consider using product reviews to help gain your customers’ trust.
6. Evaluate marketing strategy prices
Keep a close eye on pricing trends on popular advertising platforms. Once a marketing strategy is established, you should intentionally allocate funds to platforms that provide a balance between cost and performance. This dynamic approach ensures your marketing budget adapts to the changes in digital advertising.
7. Review your strategy’s performance
Real-time insights are invaluable in a rapidly evolving industry such as eCommerce. So, regularly assess your marketing strategy performance through data analytics. Well-adjusted key performance indicators (KPIs) like click-through rates, conversion rates, and customer acquisition costs will ensure your marketing budget remains agile.
Budgeting for Marketing Success
Optimizing your eCommerce marketing budget is more than just financial understanding. It also requires a deeper knowledge of local market trends, preferences, and behaviors. By aligning your strategies with unique market characteristics, you can enhance your budget efficiency and position your brand for long-term success in a rapidly growing eCommerce industry.
A successful eCommerce marketing strategy entails having a high-quality platform. That said, RUSH is here for you. Our eCommerce platform in the Philippines can help your online store gain awareness, attract your ideal customers, and achieve growth.
Visit our eStore Solutions page to learn more.
