Internet marketing: Budgeting in internet marketing

Sotiris  —  July 6, 2019

Internet marketing: Budgeting in internet marketing

Budgeting helps you to decide how much to spend on your internet marketing campaigns. It should very much be part of your marketing efforts for you to be profitable. Budgeting helps you to take key decisions.

The basic rules are budgeting are simple. You should spend what you are comfortable with. It is advisable to spend based on the cash available with you for the next year, and all the costs that you have to account for from the revenue you expect to earn. It is a good idea to work your budget on a per customer basis.

There are many opportunities for you to grow your business on the internet. The challenge is to decide where to spend your money. You have different options in internet marketing like Google AdWords, online banner ads, email newsletter campaigns run by reputed vendors and ad networks. You need to arrive at an estimate on what traffic is going to give you one new customer for every $100 spent.

Budgeting in internet marketing

It is easily understood with an example. Let us assume that you are setting up a Google AdWords campaign with a budget of $1500 per month or $50 per day. The keywords that you intend to use have bids of say $3 per click for the first page.

Let us assume that your budget gets utilized every day; so it will be 500 clicks per month. By now you should know the number of visits that convert to customers, from your site’s past traffic data.

Let us assume that you are selling a software product for a monthly subscription. Now if 10 percent of visitors sign up for the trial and then 10 percent of those pays, your result for Google Adwords campaign would be 50 trials and 5 paying customers.

For $1500 the acquisition cost will be $300. This is thrice more than your comfort level of $100. These calculations help you decide that Adwords is not suitable for your budget.


Many opportunities are available today. Internet marketing experts experiment with different networks in an endeavor to find better channels. You can also get references and reviews from advertisers going after the same market.

It is important to remember that you need to stick to a campaign for some time. Otherwise, your internet marketing efforts will fail. Experts suggest that you need to stick with a campaign for at least four to six weeks.

People who do no succeed in internet marketing are those who are impatient. They do something for a week and lose patience. One week’s data is just not enough to decide whether it is a success or a failure.

While assessing different ad networks in internet marketing, you need to ask them what their average CTR rates are.


This is very much relevant if you are paying per impressions, instead of per clicks.

These networks take a fixed sum of money from you and promise a huge amount of impressions. You need to know the average clicks that advertisers get on those sites.

By incorporating the above-mentioned tips into your marketing strategy, you will be able to make informed decisions and are more likely to run your online venture profitably.


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