Are you aware that the worldwide digital marketing industry is predicted to reach a value of $786.2 billion by 2026?
Without marketing, you’ll be lucky if anyone walks through your business’ front doors. Some of the best marketing can end up being free, such as word of mouth, but that alone can’t guarantee success. When it comes to marketing, the phrase “you have to spend money to make money” definitely applies.
Are you asking yourself, “How much should a business spend on marketing?” Keep reading to learn all about it.
Figuring Out a Marketing Budget
Growing a business can sometimes feel like you’re playing a game of trial and error. If you’re struggling with finding the right marketing budget, then you should keep the 5% rule in mind.
Some business experts say that a business should use 5% of its sales for various types of marketing. Of course, even 5% can end up being too much if you’re business is just starting out. A better range to consider is anywhere from 2% to 5%.
Keep in mind that a marketing budget encompasses many different things, including digital ads, print ads, a marketing staff, and much more.
For instance, you should take some time to consider whether or not a Business Development Rep is right for you. The best marketing staff can end up revolutionizing the way you do business. All it takes is one great idea for your brand to go viral.
How to Increase Your Budget
The more money you can spend on your marketing strategy, the more money you can end up bringing in. Of course, it’s just as possible to have a robust budget but waste it on ineffective or counter-productive strategies.
This is why it’s crucial to not only understand your product or service but to understand who your target audience is. For instance, are your products so beautiful that they need high-definition pictures that can show them off? Another possibility is that your product is great at solving certain issues which you can demonstrate through a short video.
When it comes to pictures, Instagram and Facebook ads would probably be most effective. If your product is better advertised through short videos, then it’s worth running ads on YouTube, Tiktok, and other video-based social media platforms.
One marketing aspect that no business should ignore involves websites. A website is a perfect way to have a digital headquarters for your entire business.
How Much Should a Business Spend on Marketing? Now You Know
Has a friend or colleague ever asked you, “How much should a business spend on marketing?” Now that you’ve learned all about it, you can give them the details and make some calculations together. That way, you can avoid spending too much or too little.
Finding the Goldilocks zone for a marketing budget is only the beginning. There are so many other obstacles you need to overcome when running a successful business. We can give you the latest and greatest strategies.
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