People keep asking questions concerning e-commerce marketing costs. The information concerning the budget required is regularly updated. There are issues, which always demand investments and influence on the development of online business.
E-commerce marketing budget
As the majority of companies deal with e-commerce, the budgets have been growing since 2009. The same tendency concerns 2019, the figures of which are likely to stay the same as in 2018 or increase. The general increase is predicted in marketing spending. The percentage of budget spent on marketing keeps fluctuating. However, it is still quite high and lies between 6-9%. The percentage also depends on a definite industry:
- Customer services (19%)
- Education (12%)
- IT sphere (10%)
- Banking and Finances (9%)
- Consumer goods (9%)
- Media and Communication (9%)
- Healthcare (9%)
- Transport (8%)
- Energy (8%)
- Consulting (7.5%)
- Wholesales (4.5%)
- Construction and Mining (3%)
- Manufacturing (2.5%).
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Let’s look at the most common expenses, which can be included:
- various marketing activities (these are direct expenses)
- social media
- marketing staff
- analytics
- research
- other overhead costs associated with marketing
- marketing training
- sales staff.
Many companies spend lots of money on marketing technology. As for the prioritized marketing technologies, they are:
- platforms for marketing analytics
- email e-commerce marketing platforms
- platforms for the management of web content, etc.
Budget allocation
Allocation of the funds is another important issue for every marketer. It is required to allocate the funds across online and offline channels. Consider the data provided by the Forrester Research:
- 45% will be allocated by an average organization across the digital channels in 2020
- the biggest share will become search engine marketing
- online video category will increase twice by 2021
- in 2018, social media advertising took almost 30% of the online expenses
- digital marketing will enjoy 11% annual growth until 2021
- paid search, social media adverts, video adverts, and email marketing will take 45% of all advertising.
The research by ‘Marketing Sherpa’ demonstrated the percentage of money spent per each channel by the e-commerce companies:
- Print advertising (less than 10%)
- TV ads (almost 20% for the organizations with a profit of less than $1 million, 30% for the organizations with a profit of over $100 million)
- Radio ads (almost 20% for the organizations with a profit of less than $1 million, almost 10% for the organizations with a profit of over $100 million)
- Display ads or Facebook ads Design (25% for the organizations with a profit of less than $1 million, 10% for the organizations with a profit of over $100 million)
- Paid search (35% for the organizations with a profit of less than $1 million, over 20% for the organizations with a profit of over $100 million)
- Direct mail (less than 20%)
- Mobile marketing (10% for the organizations with a profit of less than $1 million, less than 10% for the organizations with a profit of over $100 million)
- Email (almost 20% for the organizations with a profit of less than $1 million, over 15% for the organizations with a profit of over $100 million)
- Remarketing campaigns (10% for the organizations with a profit of less than $1 million, over 5% for the organizations with a profit of over $100 million)
- SEO (over 20% for the organizations with a profit of less than $1 million, 10% for the organizations with a profit of over $100 million)
- Conversion optimization (10% for the organizations with a profit of less than $1 million, 15% for the organizations with a profit of over $100 million)
- Content marketing (15% for the organizations with a profit of less than $1 million, 10% for the organizations with a profit of over $100 million)
- Public relations (15% for the organizations with a profit of less than $1 million, 10% for the organizations with a profit of over $100 million)
- Social media (over 20% for the organizations with a profit of less than $1 million, lea than 10% for the organizations with a profit of over $100 million)
- Affiliate marketing (15% for the organizations with a profit of less than $1 million, 10% for the organizations with a profit of over $100 million)
- Product listing adverts (over 20% for the organizations with a profit of less than $1 million, less than 10% for the organizations with a profit of over $100 million)
- Video marketing (10% for the organizations with a profit of less than $1 million, less than 10% for the organizations with a profit of over $100 million)
- Other channels (over 30% for the organizations with a profit of less than $1 million, 35% for the organizations with a profit of over $100 million).