![Videogame: how to plan and track your marketing budget [template]](http://onlineyougrow.com/cdn/shop/articles/cov-marketing-budget-11_dd7303fc-f2ac-4cb0-acb8-682c26427ea9.png?v=1715783576&width=1100)
You’re a game developer. Let us pose a question - is your marketing budget draining resources without boosting game sales?
We've observed many developers grappling with the challenge of allocating funds effectively for impactful marketing.
That's why we've created a streamlined, effective tool that not only monitors your marketing expenditures but also ensures they correlate with your sales. Our free Marketing Budget Tracker Template, designed specifically for game developers, clarifies your financial landscape, illustrating the potential return on every dollar you spend.
Moreover, if you're looking to elevate your game with the most effective tactics and strategies, check out our marketing pack for game developers.
Continue reading below to find out how to utilize this tool to propel your game's success and make sure every marketing dollar is an investment towards your profit margins.
Get our marketing budget template for your videogame
Most video game developers don't know how to spend their marketing budget. We can help you.
How much should you spend in marketing for your videogame?
From our experience in consulting with game developers and creating our strategy guides, a common recommendation is to allocate about 3% to 6% of your game's revenue to marketing.
This percentage is a good baseline, but adjustments may be necessary based on the specific needs of your game and how effective your marketing campaigns are.
In terms of actual expenditure, the amount can vary widely, depending on your revenue and the size of your operations. For indie to mid-sized game studios, a monthly marketing budget might range from $200 to $2000 or more.
This will largely depend on your total budget for operating your game studio.
While there's no absolute minimum that guarantees success, spending less than $200 a month could restrict your marketing activities and diminish their impact.
When should I increase my marketing spend? When should I cut back?
Generally, as your game's revenue increases, so should your marketing budget. This helps sustain growth and allows you to experiment with new marketing tactics.
The type of game you develop also influences your marketing budget. Mobile games and casual titles might benefit more from digital advertising and social media to reach a wide audience, whereas AAA titles might need a larger budget for high-quality trailers, press events, and partnerships to attract a specific gamer demographic.
If your recent promotions, social media campaigns for new game features, or esports tournament sponsorships aren't increasing player engagement or boosting in-game purchases, it might be time to reassess your marketing spend.
This could indicate a need to reduce your marketing budget, especially if your studio is facing financial constraints.
Conversely, if these efforts are enhancing player retention, attracting new players, and your profit margins are healthy, reinvesting in your marketing could promote further growth.
How can I determine if I am overspending or underspending on marketing?
To determine if your marketing spend is too high, monitor the return on investment (ROI) and the cost per acquisition of new players. If your marketing expenses are cutting into profits without increasing player numbers or revenue — perhaps your launch event didn't attract the expected attention or your online ads aren't converting — it's a sign you might be investing too much in marketing without seeing the desired results.
Indicators that you're overspending include promotions consistently not meeting expectations, a high churn rate of players despite significant marketing efforts, or your marketing costs rising faster than your sales.
On the other hand, signs that you're not investing enough include stagnant player numbers, declining game engagement, or competitors gaining more visibility and player interaction. If you observe these trends, it might be time to enhance your marketing efforts.
The seasonality of your marketing budget
Finally, your marketing budget should fluctuate with the gaming industry's peak and off-peak seasons. During high-demand periods, increasing your budget can help you capitalize on greater player interest and engagement. Conversely, during slower times, you might focus more on building brand loyalty and awareness, possibly with a reduced budget aimed at targeted campaigns to keep your player base engaged and ready for the next surge in activity.
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An example of marketing budget for videogames
Designing a comprehensive marketing budget for a video game requires a strategic approach to reach and engage the target audience effectively.
Below is a detailed breakdown in a table format, assuming a hypothetical annual marketing budget for a video game.
| Category | Subcategory | Estimated Cost (Annual) | Percentage of Total Budget |
|---|---|---|---|
| 1. Digital Marketing | Game Website (Maintenance & Hosting) | $2,000 | 4% |
| SEO (Search Engine Optimization) | $3,000 | 6% | |
| PPC (Pay-Per-Click Advertising) | $5,000 | 10% | |
| Social Media (Ads & Management) | $6,000 | 12% | |
| Email Marketing | $2,000 | 4% | |
| Content Creation (Game Trailers, Artwork) | $2,000 | 4% | |
| Total for Digital Marketing | $20,000 | 40% | |
| 2. Traditional Marketing | Print Advertising (Gaming Magazines) | $3,000 | 6% |
| Posters and Merchandise | $2,000 | 4% | |
| Billboards and Banners | $2,000 | 4% | |
| Gaming Conventions (Sponsorships) | $3,000 | 6% | |
| Total for Traditional Marketing | $10,000 | 20% | |
| 3. Public Relations | Press Releases | $1,000 | 2% |
| Gaming Influencer Partnerships | $3,000 | 6% | |
| Charity Gaming Events & Sponsorships | $1,000 | 2% | |
| Total for Public Relations | $5,000 | 10% | |
| 4. Promotions & Engagement | Launch Event | $2,000 | 4% |
| Discounts & Seasonal Sales | $3,000 | 6% | |
| Online Tournaments & Prizes | $3,000 | 6% | |
| Player Loyalty Programs | $2,000 | 4% | |
| Total for Promotions & Engagement | $10,000 | 20% | |
| 5. Miscellaneous | Market Research | $2,000 | 4% |
| Training for Marketing Staff | $1,000 | 2% | |
| Contingency Fund | $2,000 | 4% | |
| Total for Miscellaneous | $5,000 | 10% | |
| Total | $50,000 | 100% | |
What should be the main marketing expenses for your videogame?
Digital Marketing Budget and Expenses for Your Video Game
First up, let's dive into the digital marketing budget. For video games, it's smart to allocate about 25-35% of your total marketing budget to digital channels. This range is a starting point and can be adjusted based on your specific needs and goals. Digital marketing for games isn't just a single strategy; it encompasses social media advertising, email campaigns, SEO, and maintaining an engaging website.
If you're feeling overwhelmed by these terms, don't worry! We've broken down everything and provided practical advice in our strategy pack for video game developers looking to expand their reach.
Regarding social media advertising, it's crucial for both acquiring new players and engaging current ones. A typical budget for social media strategies and ads for your game might range from $200 to $1500 monthly.
This budget helps cover costs like paid ads on platforms such as Facebook and Instagram, creating compelling content, and possibly hiring experts to manage your campaigns. Investing more can widen your reach and enhance targeting precision, which usually translates into better player acquisition rates.
Website Budget and Expenses
Now, let's talk about your game's website.
A professional, user-friendly website is essential—it's like the main lobby of your game online. Developing a robust website can cost anywhere from $3,000 to $15,000 or more, depending on the complexity, design quality, and features (like leaderboards or player forums). This investment is crucial as it serves as a primary hub for gamers to discover your game, learn about its features, and connect with the community. A well-crafted website not only boosts your brand but can significantly influence gamers' decisions to download or buy your game.
SEO Budget and Expenses
Investing in SEO is also critical for your video game's online presence.
Effective SEO can elevate your website's visibility in search engine results, increasing the likelihood that potential players stumble upon your game. A monthly SEO budget of $500 to $2,000 is advisable, covering keyword research, content updates, optimizing your site, and tracking performance. An efficient SEO strategy for your game can drive a consistent increase in organic traffic, potentially reducing the reliance on paid ads as your game gains visibility.
Other Marketing Expenses to Consider
Lastly, consider investing in community engagement and event sponsorships.
These activities might cost a few hundred to several thousand dollars, depending on the event's size and your level of sponsorship. Despite the upfront costs, the benefits include boosting your game's local and community presence, fostering goodwill, and directly interacting with your audience. These efforts are excellent supplements to your digital strategies, rounding out a comprehensive marketing approach.
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Marketing for videogames with a limited budget
When you launch a new video game, particularly as an independent developer, it might feel like every dollar spent on marketing is a dollar taken away from development. This can make substantial marketing budgets seem out of reach.
Yet, attracting new players and retaining existing ones necessitates some level of visibility and buzz around your game.
The good news is, effective marketing doesn't have to break the bank. Especially if you have innovative content ideas for your game's social media, many impactful marketing strategies can be executed on a shoestring budget. We've compiled these strategies in our strategy pack tailored to indie game developers.
Cost-effective marketing strategies for video games
Here's a brief overview for you.
| Channel | Initiative | Estimated Cost |
|---|---|---|
| Social Media | Host a fan art contest on platforms like Twitter or Instagram. Encourage fans to create and share their artwork inspired by your game using a specific hashtag. Offer in-game rewards or merchandise to the winners. | $0 - $100 (cost of rewards) |
| Steam or Game Forums | Regularly engage with your community on platforms like Steam, Reddit, or Discord. Post updates, respond to feedback, and tease upcoming features to keep your audience engaged. | $0 |
| Local Gaming Events | Set up a booth at local gaming conventions or meetups. Offer a demo of your game and distribute promotional codes or swag. | $100 - $500 (for booth setup and promotional materials) |
| Email Marketing | Create an email newsletter for updates about your game. Offer exclusive content or early access to subscribers to build a dedicated following. | $0 - $30/month (depending on the email marketing service used) |
| Partnerships with Influencers | Collaborate with gaming influencers who can review or stream your game. This can provide exposure to their followers and drive interest. | $0 - $500+ (depending on the influencer's rates) |
| Referral Bonuses | Encourage players to refer friends by offering them in-game currency or exclusive content for each referral who joins the game. | $0 (cost absorbed by in-game resources) |
| Loyalty Rewards | Implement a rewards system where players earn points for time spent playing or achievements unlocked. Points can be exchanged for in-game items or perks. | $50 - $200 (for system development and maintenance) |
How to track the marketing performance of your videogame?
To effectively gauge the success of your marketing strategy for your video game, it's crucial to focus on metrics that directly reflect the impact of your marketing efforts on your game's visibility and player engagement. While increasing your marketing budget might seem like a straightforward way to attract more players, the results are not always guaranteed.
To maximize the efficiency of your marketing budget for your video game, consider utilizing tools or software specifically designed for budget planning and performance tracking. Google Analytics, for instance, is an excellent resource for monitoring online interactions and can provide deep insights into how players are engaging with your game's marketing content online.
Moreover, social media platforms provide their own analytics tools that can help you measure the effectiveness of your campaigns on their networks. We break down these tools and simplify them for you in our strategy pack for video game marketers.
The signs of a successful marketing investment can be seen in both your game's revenue and player engagement metrics. For example, an increase in game downloads or active players following a marketing push is a clear indicator of its effectiveness. Similarly, a surge in your social media followers or engagement rates after a targeted advertisement campaign can signal a boost in brand awareness and player interest.
Key Performance Indicators for Your Marketing Efforts
To help you better understand, here are some key performance indicators of a successful marketing investment in the context of video games.
| Indicator | Description | Measurement Method |
|---|---|---|
| Increase in Game Downloads | A noticeable rise in the number of downloads following a marketing campaign. | Compare download statistics before and after the campaign. |
| Growth in Social Media Engagement | Increased likes, shares, comments, and followers on the game's social media platforms, indicating heightened interest and interaction with the brand. | Analyze social media analytics for spikes in engagement metrics. |
| Higher Player Retention | An increase in the number of active players who continue to engage with the game over time, suggesting successful ongoing engagement strategies. | Monitor player activity data and retention rates. |
| Increased In-Game Purchases | Higher sales of in-game items or upgrades that were promoted as part of the marketing campaign, indicating effective targeting and player interest. | Track transaction data for the promoted items before and after the campaign. |
| Positive Player Feedback | Receiving more positive reviews and feedback on gaming forums and platforms about the game, especially those aspects highlighted in the campaign. | Monitor gaming forums, social media, and review platforms. |
| Enhanced Email Engagement | An increase in open rates and click-through rates for marketing emails sent to the game's mailing list, indicating higher interest in the content being shared. | Use email marketing software to track engagement statistics. |
| Rise in Website Traffic | More visits to the game’s official website, indicating increased interest possibly sparked by digital marketing efforts. | Analyze website analytics for increased traffic and user behavior. |
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Mistakes and pitfalls to avoid when marketing your videogame
Being strategic about how and where you allocate your marketing budget can significantly enhance your video game's market presence and growth potential.
Let's explore some common marketing missteps in the video game industry, presented in a table for better clarity.
| Pitfall | Description | Prevention Strategy |
|---|---|---|
| Excessive Spending on General Ads | Investing heavily in broad, non-specific advertising (e.g., nationwide TV ads) that fails to effectively target the game's core audience. | Utilize targeted digital advertising. Leverage platforms like Twitch, YouTube, and gaming forums where you can target ads based on user preferences and gaming habits. |
| Ignoring Digital Footprint | Not maintaining an active and engaging online presence, including game updates, developer blogs, and active social media accounts, which can lead to reduced player engagement. | Keep your game's website updated with fresh content, interact regularly on social media, and engage with gamers through frequent updates and interactive posts. |
| Underutilizing Player Recommendations | Not leveraging the power of player recommendations and reviews, which are crucial in the gaming community. | Encourage players to leave reviews, create shareable content, and offer incentives for referrals to harness the power of word-of-mouth. |
| Overlooking Game-Specific SEO | Failing to optimize for search engines based on keywords specific to your game can make it difficult for potential players to discover your game organically. | Implement SEO best practices on your game's website, use relevant keywords in your content, and ensure your game appears on popular gaming review sites. |
| Neglecting Player Retention | Focusing excessively on acquiring new players without strategies to keep existing players engaged can lead to a quick drop in user base. | Develop in-game events, updates, and community challenges to keep players engaged. Consider loyalty rewards and feedback loops to retain players. |
| Improper Budget Allocation in Social Media | Over-investing in social media without a clear understanding of which platforms and ad types perform best for your game. | Start with small, targeted ad experiments on different platforms. Analyze performance data to determine where to invest more heavily. |
| Lack of ROI Measurement | Not tracking the return on investment for marketing campaigns, leading to potentially wasteful spending. | Employ analytics tools to monitor the effectiveness of marketing campaigns and adjust strategies based on performance data. |
| Chasing Every New Trend | Investing in every new marketing trend without evaluating its relevance or effectiveness for your specific game. | Critically assess new marketing trends to determine their alignment with your game's branding and audience before committing funds. |
| Disregarding Physical Marketing | Overlooking traditional marketing methods like game conventions, merchandise, and physical advertisements, which can still play a significant role. | Participate in gaming conventions, collaborate with influencers for merchandise, and consider physical ads in gaming magazines or at relevant venues. |
| Poor Crisis Management | Lacking a flexible marketing strategy for downturns or public relations issues, leading to hasty decisions or inaction. | Prepare a versatile marketing strategy that can be adapted to different scenarios, including game delays, bugs, or other crises. |
We can help you spend smarter on marketing for your videogame
We understand the hurdles you face as a video game developer when it comes to allocating funds for marketing.
The plethora of marketing terms and strategies can be confusing, making it tough to determine where to focus your efforts and resources. You might prefer investing in direct game enhancements or worry about the substantial initial costs of marketing without assured outcomes.
Perhaps you've attempted marketing in the past with little to no success, which might leave you questioning its effectiveness. Or maybe you're daunted by the numerous options available and the fast-paced changes in digital marketing, making it tempting to just rely on organic growth and the strength of your game alone.
It's completely understandable that amidst the intense cycle of development and updates, carving out time and resources for a marketing strategy seems overwhelming, if not unfeasible.
Acknowledging these challenges, our team has crafted a suite of marketing strategies specifically tailored for video game developers like you. This suite simplifies marketing with clear, easy-to-follow guides that strip away the complex jargon and focus on practical, actionable strategies.
We've selected cost-effective and straightforward marketing techniques that don't demand a hefty initial investment, providing solutions that are economical yet have the potential for significant returns.
Our suite offers a variety of options to accommodate different needs and budgets, helping you make educated choices without feeling swamped. It's designed to empower you to harness digital marketing effectively, even if you're not a tech expert, and to bolster your organic growth with robust, structured marketing efforts.
By integrating these tools, we aim to lighten the load of marketing, allowing you to concentrate on what you do best: developing your game and engaging your players.
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