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What Percentage of My Budget Should I Spend on Digital Marketing in 2019

By Snap Agency September 28, 2018

The digital landscape is one that is constantly – and rapidly – changing. Within months, new platforms can be born and old programs discontinued, or a new trend can catch on and spark radical change. Within a year, the entire industry can drastically evolve: we saw this when Facebook launched publicly over 10 years ago. As we see the effects of Facebook now, the future market will see 2018 as a year not short on its own technological advancements or setbacks. We’re already seeing the effects that those changes have had on today’s market (hello cryptography) . So, with these changes in mind, how is a business supposed to decide where to invest their marketing budget to in the rapidly approaching 2019?


Keep reading to see our breakdown of the 2018 digital scene and our recommendations on how to budget for digital marketing in 2019.

How Digital Marketing Has Changed from 2018

Social, mobile, and search all grew rapidly in 2018. According to Forrester Research and eMarketer, the average company forecasted allocations of up to  41% of their marketing budget to digital methods. That number is higher than past years, and we will see it continue to rise as technology becomes even more integral to progress, with nearly every American walking around with a smartphone in their pocket.

It was also projected by Forrest Research and eMarketer studies that search engine optimization departments would be the big winners in 2018 by accurately representing the largest portion of online spending with additional online marketing opportunities including email marketing and online video, with social media closely following. Additionally, companies are funneling increasingly more money to digital strategies and marketing because of its perceived ROI and the ability to spend less, but take home more in the long run.

Companies now recognize the value of digital marketing and have shifted their thinking from; “What is the right allocation for digital marketing spend and how should it be spent?” to, “digital marketing is the future, and we need to invest significantly to remain ahead of the pack.” Varying according to the type of business and the target market of each company, up to 41% of marketing budgets were devoted to online growth in 2018. This number is even higher than 2017, which reflected 35%. But for conducively electronic companies, B2C, or the quickly increasing number of businesses who gain business through their online presence, the budget is understandably higher and I forcee it continuing to increase in the years to come.

A Review of the Interactive Marketing Spending Trends of 2018

Any company that relies on a strong digital presence as a significant part of their business places at the top of this spending bracket. Marketing budgets are ultimately decided by the competition of similar businesses, the specific industry, and how varying demographics respond through the conversion funnel. Thus, budgeting for interactive marketing will only rise as older generations keep aging, and young consumers step up to take their place with demands for more access, better prices, and instant availability. Young people are used to having the metaphorical “world at their fingertips,” and are forcing businesses to meet that expectation in order for their support to be given.

How Digital Spending Is Projected to Grow in 2019

According to Forbes, digital marketing budgets will skyrocket in 2019: they forecast a 12.3% increase in the already high 44%. The big number to watch, though, is the shocking 54%, where they anticipate digital marketing allocations to reach by 2023. As the attention of today’s consumer center on their screens, we will continue to see correlating shifts not only in how advertisers are spending their marketing budgets but also in how companies will place greater investment in using their data to increase their R.O.I.

How Companies Are Viewing Their Digital Advertising ROI Going into 2019

Digital marketing efforts are interpreted, and thus reflected, differently by each industry or company. However, data collected by GetResponse shows us that email marketing, content and social media marketing, and search network PPC are viewed as providing the highest ROI. The poorest performers in the eyes of today’s marketers are display advertising, direct mail, and affiliate marketing. Meanwhile, engagement and data tracking have broken out as the new big shots in town, keep an eye on these methods as you go into your next year – especially if you have the goal of reaching the newest generation of consumers–millennials.

Why Businesses Are Spending More Money on Digital Marketing in 2019

Children born in the year 2000 are now 18, and have no understanding of life before cell phones, or search engines that can answer any question with a few types of their fingers. The digital world is their reality, and digital marketing budgets are growing out of the necessity to engage customers in spaces they are most comfortable. For the Gen-X’ers, this was direct and mail marketing. Now, it is through genres like influencer and relationship marketing, and even Reddit. By 2019, digital will have surpassed TV ad spending: this is a change the business world will need to adapt to – and quickly, in order to survive.

While those in digital have known that their way is more than just a trend for years, the data is proving that TV, the top advertising medium until this point, is on its way to being obsolete. Most millennials households don’t own standard cable. What they do have are streaming platforms such as  Hulu, Netflix, Amazon Video, and Apple TV programs. Most can’t even remember the last time they watched regular television. Businesses are realizing this, and are changing their advertising methods to reach these consumers who are veering increasing away from the old norms.

Be Ready for Your 2019 Digital Marketing Needs with Snap

Saving money is a great goal, but in order to make money, you have to spend it. For this reason,  it’s important to find a healthy allocation for your 2019 budget, so you can place your focus where your highly trackable features will get you the most impactful ROI. Don’t get left behind in 2019 with outdated marketing strategies; call Snap today to learn how you can incorporate digital marketing services into your 2019 marketing plan. We can’t wait to chat with you.