How to budget for Ecommerce and SEO
How much do brands like yours spend on Ecommerce and search engine optimisation? It can be tricky to know what to budget and how to strike the right balance. So understanding what others have done is a good way to benchmark your own progress.
The challenge is that you can spend too much and risk taking funds from other parts of the business for diminishing returns. Spend too little and you could be ignoring valuable revenue streams and risk not attracting new business.
In order to get your budget right, you need to think about a few key areas.
What are your goals?
Your budget should be tailored to meet your specific goals. Different types of goals are better suited to specific channels. For instance, if you want a better ROI for marketing spend, you might be better off shifting some budget to SEO. If you’re looking to increase sales, then you need to work on Ecommerce areas and SEO to bring in new clients.
If brand awareness is a goal, then shift focus and budget to social media and email marketing.
Ecommerce brands generally spend between 10 and 24% of their marketing budget on SEO. In general, the number tends to get lower the longer the company has been operating. For newer companies who need to increase brand awareness, then it might be necessary to spend more. Larger companies are also less reliant on using link building.
Ecommerce brands spend around 29 to 57% of their marketing budget on paid search. Smaller companies are more likely to spend more on paid search than larger ones.
Look at your data
Although it is useful to know what other companies are spending on SEO and Ecommerce, the most important metrics are always your own. If you have a couple of years of data for the Ecommerce side of the business, then this should be the starting point for deciding your budget.
As with any budgeting strategy, the rules are to always plan, test, analyse and revise. That way you should be able to get a clearer picture of what you need to be spending. But remember that budgets are not set in stone and should be fluid and flexible.
If you’d like to find out more about what Ecommerce and SEO can do for your business, then why not get in touch with us here at Designaweb? We specialise in developing Ecommerce websites and SEO for small and medium sized business. Spend some of your budget with us and you can improve online sales, customer growth and give your business a boost.