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What is establishing and allocating the promotional budget?

Is there a basic formula for allocating an online budget across online efforts (SEO, SEM, and display)?

  • I know budget allocation should be based on ROI, but is there a general approach for a start up effort. For example: 15% SEO, 50% SEM (Brand, Performance, Contextual) , 25% Display (15% Brand & 10% retargeting) and 10% Social?

  • Answer:

    I don't think so. Your spread will depend on your industry, the way your audience interacts with your product type in general, and a variety of other factors. Certain industries can benefit MUCH more from a competent social strategy than they can from display.  Recommend doing some testing/split testing to get an understanding of what gives you the best return.

Matthias Clock at Quora Visit the source

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The balance depends on your product and/or services and where your target audience will have the most opportunity to find you in their focus.  It takes a lot of impressions to get a customer's business.  Look at search trends.  If people are not directly searching keywords related to your offerings perhaps you could find more impressions through SEM (display, social).  SEO can mean waiting for results, so SEM is often used in tandem with SEO and has a higher budget while waiting for SEO to gain traction.  However, don't mistake organic as free.  Ongoing efforts must be performed to stay above the fray, which takes time and expertise.  There is no magic combination of percentages but I would say yes, higher SEM than SEO in the beginning.

Kellee Gabel

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