Skip to content

What is a Realistic Budget?

Digital Consultant Sam is back with some words of wisdom:

Don’t miss the entire forest trying to look for a tree.

At KMG we are up front and realistic about what it takes for you to achieve your KPIs and business goals, so that they work and you see a return. We establish this from the offset. Then we do all that it takes to make that happen, optimise and get better results month on month. Getting more for less. Once proof of concept is achieved, re-invest and grow. Keep doing so on repeat and that is the key to stable growth and expansion.

Do you have big hairy audacious goals but you’re scared to invest enough into your advertising?

When it comes to measurable effective ROI driven marketing, you need to go all in on having faith in data. Take PPC for example; If you’re a removals company and you want to achieve an additional 5 clients per week at an average client value of £500, you need to figure out what it’s going to take to achieve so. If the average cost per click is £8 and your website converts at say 10% then you can expect that 1 lead will cost you £80. If you then, from lead to client, convert 1 in 3 leads, then your cost per client is £240.

Multiply that by your goal of 5 new clients per week, then your ad spend should be £1200 per week leaving you a £1300 gross profit. And from day one, until you’ve spent some time optimising the campaign, that should be the least you spend. Sounds simple right? Yet so many business owners freak out at the prospect of spending £4800 per month to an agency on something from the word go. You have to build trust with sufficient budget. Most agencies fear losing a sale because they will appear ‘too expensive’. So they take the easy route and promise results for £150 per week or something that cannot drive the return on advertising spend (ROAS). And that’s why some Digital Marketing Agencies have gained a bad reputation through the years. Convincing you that they have some magic tool that will basically convert clicks at 10000%. PPC is an amazing and effective way to produce great ROI. BUT IT’S NOT MAGIC. Invest in the data. Numbers do not lie.

Cutting corners and taking shortcuts costs more in the long run. You miss the entire forest trying to look for a tree. 

So many companies are so laser focused on instant gratification and quick return on investment (ROI) that that they lose sight of the bigger picture. Don’t sacrifice the long term gain in search of a 1 month quick fix. If your goal is to grow 300% in 2019, then plan for that. Don’t plan to find an agency that will run 1 month Google Ad campaigns where you can cancel if it doesn’t instantly provide ROI. A true performance marketing agency that are worth their weight in gold will stand by contractual terms. Their job will be getting you to your end goal, not just getting you a quick ROI. In the beginning you should aim to achieve KPIs not ROIs. The ROI will follow. To grow 300% in a year, you need to build and maintain an effective, robust lead generation machine. You need to always view your website as a work in progress and treat it like a piece of art which takes a lot of ongoing testing, optimisation and repetition to perfect.

If you’re expecting a magic 1 month PPC solution on a search engine that changes it’s algorithm more often than the Piccadilly line is delayed, you’re setting yourself up for harsh disappointment and you will bounce from agency to agency.

If you need help making the step to achieve your dreams, call the KMG Office.