Marketing Channels and Budget For Start-ups

Hi, I’ve seen so many entrepreneurs questioning about the marketing budget for their product. Defining the budget is really not so easy. It may vary product to product, location to location and on demographic basis. I’ll try to throw the light on every aspect of it.

First I’ll explain about the type of marketing. So, there are two types of marketing.

  1. Online Marketing
  2. Off line marketing

Each type of marketing has some channels. Lets start with Online Marketing. So, there are only 6 marketing channels in online marketing. There are 3 more marketing channels which are similar to the channels, we will discuss in the list of 6 marketing channels.

Online Marketing Channel:

  1. Google Adwords (SEM)
  2. Social Media (SMO)
  3. Content Marketing (CM)
  4. Email Marketing (EM)
  5. Affiliate Marketing (AM)
  6. Search engine optimization(SEO)

Another 3 channels are:

  1. Display Network
  2. SMS Marketing
  3. Video Ads

These 3 extra channels are actually covered in above mentioned channels.

Display network can be covered by Google Adwords, Content Marketing and Affiliate Marketing.

SMS Marketing can be added in Online Marketing. Although, None of the above mentioned channels cover it yet I wouldn’t like to add. I’ve seen so many customer getting frustrated due to this channel. It can be used for alert purpose but you can’t sell and selling is the only goal of marketing. Either you sell your service or a product but you sell every time you think about marketing.

Video Ads: Here I would like to Specify YouTube and some other video publishing website. You can cover it in Content Marketing and SEM.

Budget on Marketing: There are 3 conditions:

  1. When it comes to define the budget for Online Marketing, just analyse the existence of your user on Internet. If you are selling for internet savvy people then you must focus on Online Marketing first. If your proposed customers are internet savvy and spending at least 1 hr daily on internet then for Online Marketing and Off Line Marketing you can define the budget in the % of 60 and 40 respectively.
  2. If your proposed customers are not so much active on Internet then for Online Marketing and Off Line Marketing you can define the budget in the % of 30 and 70 respectively.
  3. The chance of this condition is very low. If your customers are not an internet savvy at all then don’t waste your money on Online Marketing Channels. But you must have at least your website.

The other type of Marketing is Off Line Marketing. It consist two type of media.

  1. Print media
  2. Electronic media

Print media: If your market is local and business rely on specific season and geography it is good to focus on Print media before electronic media. It’s cost effective and ROI is high (only in case of local and geographic specific business).

There are 8 channels of Print media.

  1. Newspaper
  2. Magazine
  3. Banners
  4. Pamphlets
  5. Poster
  6. Wall painting
  7. Balloons
  8. Skyscrapers

 How to set budget efficiently:

To use your budget efficiently, you need to focus to to use your marketing channels efficiently. Efficiency of Marketing channels depends on the time of broadcasting of your message. If you can manage to convey your marketing message through various channels and at least 5 times in a day and for 4 days, you can see your targeted customer at your store/website on 5th day.


What % of the online marketing budget should be spent on every channel?


 Sr.  Channels  Budget %
 1  Google Adwords (SEM)  35%
 2  Social Media (SMO)  25%
 3  Content Marketing (CM)  18%
 4  Email Marketing (EM)  10%
 5  Affiliate Marketing (AM)  7%
 6  Search Engine Optimization (SEO)  5%

Reasons for above figure:

Google Adwords: This is the very important part of your Online marketing. You get high ROI through this channel. You can target your appropriate audience , geographic location and demography. You can do this by this only channel. That’s why, highest budget should be allocated to this channel.

Social Media: This is the other medium to create the fine place for your product. You can get your audience aware using SMO. You know or get to know who is being targeted. Although you can’t get good sale using this medium but you can get customer’s feedback, spread your product info and analyse the reaction of your proposed customers. It helps you to create your business strategy.

Content Marketing: You can just create your brand value, spread your product information and advertise your product using this channel. SMO is nothing without content. So to use SMO effectively you need to add content marketing in you marketing plan.

Email Marketing: It is used to get in touch with your existing customer as well as proposed customers. Attractive mailers and news letters can make your users come to your website. Now you must focus on landing page. As per my experience 10% is enough.

Affiliate marketing: It’s cheaper than Google Adwords but you must calculate the ROI. If the ROI is poor as compared to Google Adwords, just switch it off and transfer this budget to other channels. The same you can do with Google Adwords and content marketing what you will try to achieve through affiliate.

SEO: It’s great to have Good position on Search engine with relevant keywords. It takes lots of time and efforts. You should focus on SEO but if you are working on your content marketing effectively, you need not to be worried about SEO. You will definitely achieve good ranking if your content is excellent and site is optimized. 5% is sufficient because you have spent good amount on Content marketing.



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