The COVID-19 pandemic of 2020 served as a litmus test for most businesses. Search Engine Marketing (SEM) became necessary to some companies for the first time, while others temporarily pushed it to the sidelines to save money.

Regardless of how last year impacted your Schaumburg business, you now have the opportunity to refocus — and possibly scale up — your paid search marketing efforts. However, getting started may not be an easy task.

How much money should you set aside for your paid advertising efforts? Are you squandering money on other marketing channels? Do you have to pay for website leads?

We understand your concerns. Sorting through marketing questions as a business owner is tough, but fortunately, we are here to provide some answers, starting with the budget. Below, this SEM agency in Schaumburg, Illinois is going to provide some information that will help you determine the right paid search budget.

What is the Average Paid Search Marketing Budget?

While there is no one-size-fits-all answer for every business, marketing experts agree on the 5% rule of thumb. As a general rule, companies should spend about 5% of their total sales revenue on marketing their business using paid advertisements.

Of course, this percentage will differ depending on your company and industry. For example, if your Schaumburg business makes less than $5 million in sales annually and has a net profit margin of 10-12%, the Small Business Administration (SBA) recommends spending 7-8% of your total sales revenue on paid marketing.

However, if you run a business in a highly competitive industry — such as retail, consumer items, or pharmaceuticals — you may want to spend anywhere from 20% to 50% of your sales revenue on marketing certain offerings.

What Should My Marketing Budget and Strategy Include?

Once you have outlined your paid marketing budget, it is time to think about what your marketing strategy could entail.

1. Establish realistic marketing goals.

The first step in setting a marketing budget is identifying your marketing objectives for the year. Set clear, measurable, and realistic goals with predefined success indicators. In other words, you should be able to evaluate whether or not your objectives are being met!

2. Take a closer look at your online marketing foundation.

With your marketing objectives in place, take some time to analyze your marketing foundation. Do you have the right digital assets in place to achieve your goals? Is your foundation fit for major expansion?

For example, as an SEM agency in Schaumburg, Illinois, we have been approached by business owners who wanted to pursue pay-per-click (PPC) ads vigorously, only to discover major flaws in their website. So we often had to take a step back before launching any PPC campaign and focus on website design and development first.

Consider these questions:

  • Do you have a defined, consistent brand that accurately represents your Schaumburg business to your target customers?
  • How does your website stack up against your competitors’ websites? Do you organically rank on Google for relevant keywords?
  • Do you have the tools and processes in place to track the return on your marketing investment?

To strengthen your SEM efforts, patch any cracks in your marketing foundation as quickly as possible.

If you are unsure how to identify problems with your marketing foundation, we will happily run a website audit for you and present you with a list of problem areas.

3. Allocate your marketing budget

Now that you have a solid marketing foundation and a checklist of actionable goals, you are ready to invest in paid search marketing.

Partner with the Premier SEM Marketing Agency in Schaumburg, Illinois

If you’re ready to partner with the top-rated SEM marketing agency in Schaumburg, Illinois, contact the experts at Digital Destination. We working with businesses of all sizes and industries in the Schaumburg area, and we are committed to improving your business with results that speak for themselves.

Want to learn more about how our transparent, comprehensive search engine marketing process can deliver measurable growth? Contact us today at (312) 933-6806 to schedule a free consultation.