What Should My Marketing Budget Be?
Every business needs to market to attract customers, increase sales, and be more competitive. But many small business owners find it difficult to estimate how much they should spend on it.
That said, we offer the following tips on how much you should spend on marketing.
1. Start by researching your industry
To keep it simple, your marketing budget should be a percentage of your income. Typically, B2B businesses should spend 2-5% of their revenue on marketing.
For B2C companies, this proportion is often higher – between 5 and 10% – because they typically have to invest in more marketing channels to reach different customer segments.
2. Set clear goals
It is important to clearly define your marketing goals. These must be measurable and specific.
- Do you want to get more visitors to your website to take a particular action? If so,
- How many people and what time period are you targeting?
- Do you want to invite people to your facility for a free sample or consultation?
- What type of customers do you want to attract the most?
- How many of them are you ready to welcome?
Defining your goals will allow you to plan what needs to be done, and the type of investment needed.
Does your value proposition clearly explain how you will meet their needs and why they should visit your site or establishment? From there, you can determine the best way to design your marketing campaigns to create offers that are more likely to lead to sales. ”
Once you’ve set your budget and implemented your plan , review them regularly to see if your spending is meeting your goals.
3. Consider all of your potential costs
As with any business expense, marketing has many components. You can adjust the amounts over time depending on what works best:
- Website: The cost of your website includes the initial design and creation as well as monthly hosting. It also encompasses updating your content.
This will allow you to monitor your visitors and know where they are coming from – information that will help you determine how much your other marketing investments are earning you. ”
- Social Media: Set aside money to invest in online advertising on social media platforms shareware right for your business, like Facebook and LinkedIn.
Even though the traffic to your social media pages is fully organic – i.e. that visitors are drawn to the content you post – you need to consider the resources required to create that content.
- Online advertising: By monitoring and refining your online advertising, you will be able to budget more accurately.
- Traditional Media: While digital advertising is generally more affordable, traditional advertising, radio, print, and TV can still be effective, depending on your target audience. Think about your resources and how you can get the most from your budget.
- Email Newsletters: Sending regular updates to customers who have opted in to receive information helps keep your business high in their minds and builds loyalty. Planning newsletters, writing content, and using online mailing tools take time and resources.
- Video: Costs will vary depending on whether you hire a cameraman and editor or just upgrade your smartphone so you can shoot the videos yourself.
- Training: If you are relying on your internal staff to create and run your marketing campaigns, be sure to set aside funds for training, and your staff needs the training to stay abreast of best practices.”
4. Track costs and regularly adjust your budget
By looking at every expense in your marketing budget, you’ll have a better idea of what you can afford to pay, based on your priorities. Regularly track your costs and web analytics data.
Evaluate your marketing budget on a quarterly and yearly basis to see if your forecast matches your actual spending. By monitoring your marketing costs and perfecting your efforts, you will be able to establish more accurate budgets over time.
With the few tips above, I hope you have been able to get a clearer picture of how to spend on marketing.
If you have any questions, do leave a comment, I would love to connect with you.