{"id":2064,"date":"2018-05-24T11:06:13","date_gmt":"2018-05-24T10:06:13","guid":{"rendered":"https:\/\/www.discountdisplays.co.uk\/our-blog\/?p=2064"},"modified":"2025-03-06T16:47:19","modified_gmt":"2025-03-06T16:47:19","slug":"how-to-budget-online-vs-offline-marketing","status":"publish","type":"post","link":"https:\/\/www.discountdisplays.co.uk\/our-blog\/how-to-budget-online-vs-offline-marketing\/","title":{"rendered":"How to Budget Online vs. Offline Marketing"},"content":{"rendered":"<p>Online marketing is ruling the world, there\u2019s no doubt about that.<\/p>\n<p>With various websites offering businesses the chance to expose their brand in front of millions of people, it\u2019s no surprise that online marketing is taking the world by storm.<\/p>\n<p>In fact, 28% of marketers say they\u2019ve reduced advertising budget <a href=\"https:\/\/blog.red-website-design.co.uk\/2017\/03\/17\/online-vs-offline-marketing-stats-show-spend-budget-infographic\/\">to fund digital marketing activities<\/a>.<\/p>\n<p>In addition, marketers allocated the biggest share of their entire digital marketing budget (12.5%) to digital \u2013 proving that its popularity isn\u2019t set to slow down any time soon:<\/p>\n<p><a href=\"https:\/\/www.discountdisplays.co.uk\/our-blog\/wp-content\/uploads\/budget-online-offline-marketing.png\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-2065 size-full\" src=\"https:\/\/www.discountdisplays.co.uk\/our-blog\/wp-content\/uploads\/budget-online-offline-marketing.png\" alt=\"How marketers are allocating budget for digital vs traditional advertising\" width=\"842\" height=\"572\" srcset=\"https:\/\/www.discountdisplays.co.uk\/our-blog\/wp-content\/uploads\/budget-online-offline-marketing.png 842w, https:\/\/www.discountdisplays.co.uk\/our-blog\/wp-content\/uploads\/budget-online-offline-marketing-300x204.png 300w, https:\/\/www.discountdisplays.co.uk\/our-blog\/wp-content\/uploads\/budget-online-offline-marketing-768x522.png 768w\" sizes=\"(max-width: 842px) 100vw, 842px\" \/><\/a><\/p>\n<p>But what happened to the traditional form of offline marketing? Is it still valuable, or should business plough their entire marketing budget into digital strategies?<\/p>\n<p>The answer isn\u2019t as clear-cut as you might think.<\/p>\n<p>While online marketing is proven to generate a great ROI, it\u2019s not sitting well with specific audiences.<\/p>\n<p>That\u2019s because 86% of people aged 45+ say TV and radio ads are <a href=\"http:\/\/www.mideastmedia.org\/survey\/2015\/chapter\/social-media.html\">more reliable for finding information<\/a> than social media, news apps or the internet.<\/p>\n<p>In this article, we\u2019re sharing the differences between online and offline marketing \u2013 and the simple calculation you can use to determine appropriate budgets for each.<\/p>\n<h2>Online vs. Offline: What\u2019s the Difference?<\/h2>\n<p>If you\u2019ve reached this point and still don\u2019t understand the difference between both types of marketing, let me explain.<\/p>\n<p>As the name suggests, online marketing happens over the internet. Popular online marketing strategies can include:<\/p>\n<ul>\n<li>Email<\/li>\n<li><a href=\"https:\/\/mailchimp.com\/marketing-glossary\/content-marketing\/#:~:text=Content%20marketing%20is%20a%20marketing,to%20buy%20what%20you%20sell.\">Blogging or content marketing<\/a><\/li>\n<li>Social media<\/li>\n<li>Search Engine Optimization (SEO)<\/li>\n<li>Paid search (PPC)<\/li>\n<\/ul>\n<p>On the other hand, offline marketing doesn\u2019t require businesses to use the internet to reach their target customers. Typically focused around personal interactions, offline marketing tactics include:<\/p>\n<ul>\n<li>Tradeshows<\/li>\n<li>Direct mail<\/li>\n<li>TV<\/li>\n<li>Radio ads<\/li>\n<\/ul>\n<p>The average return on investment (ROI) for each marketing tactic depends on the strategy. But, as a general rule, SEO is rated as being the <a href=\"https:\/\/www.brandnewway.com\/web-marketing-blog\/seo-and-email-marketing-lead-the-way-for-internet-marketing-roi.htm\">best channel for generating ROI<\/a>:<\/p>\n<p><a href=\"https:\/\/www.discountdisplays.co.uk\/our-blog\/wp-content\/uploads\/marketing-channels-investment.jpg\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-2068\" src=\"https:\/\/www.discountdisplays.co.uk\/our-blog\/wp-content\/uploads\/marketing-channels-investment.jpg\" alt=\"How marketing channels are being rated for investment\" width=\"560\" height=\"412\" srcset=\"https:\/\/www.discountdisplays.co.uk\/our-blog\/wp-content\/uploads\/marketing-channels-investment.jpg 560w, https:\/\/www.discountdisplays.co.uk\/our-blog\/wp-content\/uploads\/marketing-channels-investment-300x221.jpg 300w\" sizes=\"(max-width: 560px) 100vw, 560px\" \/><\/a><\/p>\n<p>\u2026but this can be reversed, depending on who you\u2019re targeting.<\/p>\n<p>Who said marketing was an easy task to complete? (Certainly not me!)<\/p>\n<h2>How to Split Online and Offline Marketing Budgets<\/h2>\n<p>In order to create an effective marketing strategy, you\u2019ll need to know what you\u2019re working with. (Unfortunately, even that task is tricky, too.)<\/p>\n<p>A recent study found that 28% of <a href=\"https:\/\/blog.hubspot.com\/blog\/tabid\/6307\/bid\/33820\/5-major-challenges-marketers-face-and-how-to-solve-them.aspx\">marketer\u2019s biggest challenges<\/a> are associated with budgets \u2013 and that\u2019s not surprising.<\/p>\n<p><a href=\"https:\/\/www.discountdisplays.co.uk\/our-blog\/wp-content\/uploads\/top-marketing-challenges.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-2069\" src=\"https:\/\/www.discountdisplays.co.uk\/our-blog\/wp-content\/uploads\/top-marketing-challenges.png\" alt=\"Top marketing challenges facing companies\" width=\"669\" height=\"545\" srcset=\"https:\/\/www.discountdisplays.co.uk\/our-blog\/wp-content\/uploads\/top-marketing-challenges.png 669w, https:\/\/www.discountdisplays.co.uk\/our-blog\/wp-content\/uploads\/top-marketing-challenges-300x244.png 300w\" sizes=\"(max-width: 669px) 100vw, 669px\" \/><\/a><\/p>\n<p>With both online and offline marketing campaigns needing a cash injection to see results, here\u2019s how you can determine your split between both tactics:<\/p>\n<h3>1. Calculate Your Overall Marketing Budget<\/h3>\n<p>Do you know the total budget you\u2019re promoting your business with?<\/p>\n<p>(This can be a monthly, quarterly or yearly figure.)<\/p>\n<p>If not, use this <a href=\"https:\/\/www.entrepreneur.com\/article\/243790\">simple formula to calculate your marketing budget<\/a>, depending on the size of your business:<\/p>\n<ul>\n<li><strong>New companies:<\/strong> take 12-20% of your gross revenue, and attribute it to marketing. Since you\u2019re fresh and still testing various marketing tactics, a larger chunk of cash will help you to get your business off the ground.<\/li>\n<li><strong>Established companies: <\/strong>assign 6-12% of your gross revenue to marketing. Because you\u2019re established and already have a customer base, you won\u2019t have to work as hard to find new customers.<\/li>\n<\/ul>\n<p>Let\u2019s put that into practice.<\/p>\n<p>If I\u2019m a small, new business with an annual gross revenue of $25,000, my total marketing budget would fall between $3,000 and $5,000.<\/p>\n<p>However, if I ran a large, already-established company with an annual gross revenue of $5 million, my total marketing budget would fall between $30,000 and $60,000.<\/p>\n<p>(This calculation works because it\u2019s proportioned to your business\u2019 size. Say goodbye to the risk of not breaking even because you\u2019ve overspent on marketing!)<\/p>\n<h3>2. Consolidate the Foundations<\/h3>\n<p>You already know that <a href=\"https:\/\/digitalmarketinginstitute.com\/en-gb\/blog\/5-successful-social-media-campaigns-you-can-learn-from\">successful marketing campaigns<\/a> stem from solid foundations, right?<\/p>\n<p>Even if you\u2019re planning to split your budget between online and offline, you\u2019ll still need to determine your:<\/p>\n<ul>\n<li><strong>Goals<\/strong>: Do you want to make more in-store sales, or would you rather see an influx of online sales?<\/li>\n<li><strong>Budget<\/strong>: Do you have a large sum of cash to plough into your marketing budget? Online marketing ads can be much cheaper than TV ads, which could affect your split.<\/li>\n<li><strong>Audience<\/strong>: Where are your target audience most likely to be found? A younger generation is likely to be online, whereas the older generation is likely to be offline.<\/li>\n<\/ul>\n<p>You should use answers to these questions to determine your budget split.<\/p>\n<p>Think about it: there\u2019s not much point in assigning the majority of your marketing budget into online marketing if you\u2019re targeting older people who don\u2019t use the internet!<\/p>\n<h3>3. Proportion Your Budget Split<\/h3>\n<p>Now we\u2019ve got the basics, it\u2019s time to proportion our marketing budget between online and offline strategies.<\/p>\n<p>The simplest way to do this is to look at the foundations we laid out previously, and see if we can draw any conclusions.<\/p>\n<p>For example: if 70% of your audience are older people and you have a smaller budget, it\u2019s wise to assign most of your total marketing budget here.<\/p>\n<p>On the other hand, if your <a href=\"https:\/\/www.bigcommerce.com\/blog\/one-powerful-formula-help-reach-online-sales-goals-sellmore\/\">goal is to drive online sales<\/a> and you\u2019re targeting the younger generation, placing the majority of your total budget behind online marketing would be a smart move.<\/p>\n<h3>4. Test and Improve Your Split<\/h3>\n<p>Unfortunately, there\u2019s no simple calculation that will tell you the exact proportion to split between each marketing strategy. The only way to find out which works best (and meets your marketing goals) is to use trial and error.<\/p>\n<p>If you were using the first example above (targeting older people with a small total budget), you might choose to place 70% of your marketing budget behind offline marketing.<\/p>\n<p>Then, you\u2019d spend six months putting this strategy into place, while also still testing online marketing with the remaining 30%.<\/p>\n<p>After the six months have passed, you should <a href=\"https:\/\/business.adobe.com\/blog\/basics\/understanding-roi-in-digital-marketing\">calculate the ROI of each tactic<\/a> based on the revenue generated against the total cost spent.<\/p>\n<p>If you spot one has a higher ROI than the other, keep switching your budget proportion.<\/p>\n<p>As you can see, you should be focusing on both online <em>and<\/em> offline marketing if you want to see results \u2013 even in 2018.<\/p>\n<p>However, remember that trial and error is the key to success.<\/p>\n<p>Split-test your budget ratio, your marketing strategies, and the places you\u2019re advertising your business.<\/p>\n<p>You\u2019ll soon build a tailored strategy that works for you!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Online marketing is ruling the world, there\u2019s no doubt about that. With various websites offering businesses the chance to expose their brand in front of millions of people, it\u2019s no surprise that online marketing is taking the world by storm. In fact, 28% of marketers say they\u2019ve reduced advertising budget to fund digital marketing activities. [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":2072,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[466],"tags":[6,445],"class_list":["post-2064","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marketing-tips","tag-marketing","tag-offline-marketing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How to Budget Online vs. Offline Marketing - Discount Displays Blog<\/title>\n<meta name=\"description\" content=\"Digital marketing is giving businesses the chance to expose their brand in front of millions of people. 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In this article, we\u2019re sharing the differences between online and offline marketing - and the simple calculation you can use to determine appropriate budgets for each.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.discountdisplays.co.uk\/our-blog\/how-to-budget-online-vs-offline-marketing\/\" \/>\n<meta property=\"og:site_name\" content=\"Discount Displays Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/discountdisplays.co.uk\" \/>\n<meta property=\"article:published_time\" content=\"2018-05-24T10:06:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-06T16:47:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.discountdisplays.co.uk\/our-blog\/wp-content\/uploads\/online-marketing.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"750\" \/>\n\t<meta property=\"og:image:height\" content=\"410\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Elise Dopson\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Elise Dopson\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.discountdisplays.co.uk\\\/our-blog\\\/how-to-budget-online-vs-offline-marketing\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.discountdisplays.co.uk\\\/our-blog\\\/how-to-budget-online-vs-offline-marketing\\\/\"},\"author\":{\"name\":\"Elise Dopson\",\"@id\":\"https:\\\/\\\/www.discountdisplays.co.uk\\\/our-blog\\\/#\\\/schema\\\/person\\\/ffb968e41c6e97757a352b0ff6115c21\"},\"headline\":\"How to Budget Online vs. Offline Marketing\",\"datePublished\":\"2018-05-24T10:06:13+00:00\",\"dateModified\":\"2025-03-06T16:47:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.discountdisplays.co.uk\\\/our-blog\\\/how-to-budget-online-vs-offline-marketing\\\/\"},\"wordCount\":1062,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.discountdisplays.co.uk\\\/our-blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.discountdisplays.co.uk\\\/our-blog\\\/how-to-budget-online-vs-offline-marketing\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.discountdisplays.co.uk\\\/our-blog\\\/wp-content\\\/uploads\\\/online-marketing.jpg\",\"keywords\":[\"Marketing\",\"Offline Marketing\"],\"articleSection\":[\"Marketing Tips\"],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.discountdisplays.co.uk\\\/our-blog\\\/how-to-budget-online-vs-offline-marketing\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.discountdisplays.co.uk\\\/our-blog\\\/how-to-budget-online-vs-offline-marketing\\\/\",\"url\":\"https:\\\/\\\/www.discountdisplays.co.uk\\\/our-blog\\\/how-to-budget-online-vs-offline-marketing\\\/\",\"name\":\"How to Budget Online vs. Offline Marketing - Discount Displays Blog\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.discountdisplays.co.uk\\\/our-blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.discountdisplays.co.uk\\\/our-blog\\\/how-to-budget-online-vs-offline-marketing\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.discountdisplays.co.uk\\\/our-blog\\\/how-to-budget-online-vs-offline-marketing\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.discountdisplays.co.uk\\\/our-blog\\\/wp-content\\\/uploads\\\/online-marketing.jpg\",\"datePublished\":\"2018-05-24T10:06:13+00:00\",\"dateModified\":\"2025-03-06T16:47:19+00:00\",\"description\":\"Digital marketing is giving businesses the chance to expose their brand in front of millions of people. 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