When you sit down to create your digital marketing budget this year, you may need a better way to figure out what that budget should be. Leadership is coming to you with the growth and new leads they expect this year, and you know the realities of how much it costs per tactic, per lead for your business. You have a list of requirements and goals, but do you have the tools you need to make these decisions with certainty? At KW2, we hear about this conundrum from our clients often. So we created two dynamic calculators you can use to help set and evaluate your digital marketing budget. They’re easy to use, and in 5 clicks you’ll be able to formulate your budget.
The first calculator will help you figure out how much you can afford to spend to get each conversion to break even. The other shows how much revenue you could generate if your cost per acquisition (CPA) was $25, $50, or any number you decide.
A lot of metrics contribute to your CPA value: the cost per click, click-through rate (CTR), and the conversion rate (CVR) all factor into your cost per new lead, or CPA.
By optimizing both the media mix and the creative execution, our digital media team helped a healthcare client reduce their CPCs and increase their conversion rate, resulting in a 40% lower CPA. With a significantly lower cost per acquisition, we were able to help them try new marketing tactics and keep on growing.
These two dynamic calculators can help you set and evaluate your digital marketing budget.
The KW2 Digital Marketing Budget Calculator will help you determine how much you can afford to spend to get each conversion to break even, while the KW2 Digital Marketing Revenue Calculator shows how much revenue you could generate if your cost per acquisition (CPA) was $25, $50, or any number you decide.
To use our calculators, enter your budget for the year or for one tactic, and then adjust CPCs, CTRs or other marketing metrics based on your current baseline. Adjust any metric up or down to see how a shift in just one variable can be a game-changer.