Which comes first – the budget (“We can spend $X on digital”) or the project needs (“We need a mobile app”)? Arguably, either route can connect you with a vendor … but they may not necessarily connect you with a solution.

When it comes to creating a digital budget, many clients aren’t sure where to start, especially if they’re not familiar with the time and costs involved in developing a digital-based project. Whether a social media strategy, touch-screen capable application or a full-blown website, different platforms and functionality require different budgets and timelines.

To help you determine a digital budget, ask yourself the following questions that can help you identify your main objectives and determine which type of investment will allow you to reach your goals.

1. What are your goals and objectives?

The first step in determining your budget may seem out of place, but it’s a critical stage that many skip over. It’s important to ask yourself: What are we trying to communicate? What are we trying to achieve? Brands will often decide to invest in a mobile app or microsite, but they neglect to identify the integral goals of each. Are you hoping to collect data from potential customers at a trade show? Provide a resource for customers? Without understanding the core goals and objectives of your messaging, it will be difficult to validate your investment. So you’re not just paying $X for a trade show gamification app, for example. You’re investing $X in a tool that captivates a wider audience, delivers a positive brand engagement and collects critical information.

2. What’s in your wallet?

Upon defining your goals and objectives, you should determine how much you can truly spend on your digital marketing initiative. Many times a client will say they want a social media strategy, website and an interactive touchscreen application for the next event or tradeshow. Do you really need all of these digital tactics? Can you afford them? Define a budget and work closely with your agency partners so that they can help you come up with the most effective plan for your money.

3. What’s the plan?

By defining your objectives and your budget, you can start identifying what digital elements to incorporate into your campaign.

Each element can move through the objectives filter to illuminate what format the overall project will take. You might need a social strategy, a landing page or interactive touchscreen application to support your digital marketing initiative – or you may only need the social strategy to get started. The format you choose to pursue should meet the needs of your target audience and coincide with the budget you have set aside for beginning steps. If you don’t know what those needs are, you might need to backtrack to perform some good ol’ research to learn more about your target customers and apply findings to your plan.

4. Which requirements should be defined?

You need to define project details so there are no surprises once you get into the creative and development phases of your projects.

Based on your needs and timeline, digital properties might change. Maybe you wanted a mobile app, but after reviewing the project goals, realized you just need a mobile-friendly website. Or maybe a restrictive timeline requires you to invest in a campaign-specific landing page instead of a new website. Keep an open mind when it comes to which elements actually make the most sense for your plan. If you merely focus upon the dollar amount you’re willing to spend, it might make you less receptive to alternative solutions.

5. Do you know what you don’t know?

If you are inexperienced in leading digital projects, it is easy to underestimate the hours and effort required. And that’s okay. Just be sure to factor in some unknown costs, such as revisions, added functionality and social media integration. It’s not your job to understand all the logistics for changing the global navigation or making subtle design changes – but you do need to understand that a rigid budget may not account for such alterations.

It can be challenging to pin a number to your budget. But the more you can distill your objectives, the clearer your understanding will be of what services, skill sets or products you really need from a digital team.

You can get in touch with Robyn at RobynS@theswitch.us