It’s not unusual that I have clients ask me, “should I have a specific category for interactive media such as email newsletters, blogs, text messaging, pay-per-click advertising, social media, and other web  marketing channels in my budget?” Yes, is always my answer.

Then the next question is usually, “how much?” Between 5%-10% of your overall budget and up to 50% of your marketing budget depending on your type of business and your goals.

Quite a few people will get very wide eyes when I throw out those numbers. Many times they think I’m kidding. Rarely am I.

You see over the past ten years there had been a huge shift in how people buy and the most effective ways to market. New technology and the web have played a huge role in this. So, doesn’t it make sense that it should affect a company’s budget and tactics? I know so.

I agree with Seth Godin. Advertising is dead. Very little of it works. Only targeted marketing to people who might actually buy works. That’s why the web is such a perfect medium for this. A website “pulls” interested people to it. Unlike a TV commercial that usually “sends” people “away” to another channel or the bathroom.

So, the next time you are looking over your budget, give it a good hard look. If there’s not a “web” category or a significant portion of dollars going into your website, SEO, online promotions, viral marketing, or other forms of interactive marketing, I’d think hard before putting it into action.