October marks the start of the fourth quarter, and for many businesses, this means that it is time to start planning their budget for next year. One of the areas you may be looking to budget for is marketing. Marketing is important to your business, as it can help you obtain new clients and customers, thus allowing you to grow. But how much should you be spending on your marketing? Here is some information about how much you should be spending and how you should be spending those valuable marketing dollars.
How Much Should You Be Spending on Marketing?
Most experts recommend that small business owners spend anywhere from two to 12 percent of your total annual revenue on marketing. On average, most businesses do follow this rule and spend four to 14 percent of their total revenue on marketing. Larger companies tend to spend a lower percentage of their revenue on marketing, while smaller businesses tend to spend a higher percentage.
What Should You Be Looking at When Determining How Much to Spend on Marketing?
Many factors affect how much your business should be spending on marketing. You cannot spend more than you have or can afford to spend, which is why setting a budget is so important. As you look to determine how much you should be spending, take the time to find out how much different services cost for various marketing types in your area. For example, spending $500 per month for a digital marketing plan makes sense for most businesses, but spending $1,500 for a TV or radio commercial may not always be ideal. Figure out what types of marketing you can get at what cost and try to figure out which will help you get a reasonable amount for your bang.
Where Should Your Marketing Dollars Be Going?
Your marketing dollars should be spread out, so they go to different types of marketing efforts. This helps you to reach your targeted customer in a variety of different ways. Some of your marketing dollars should go to a website, search engine optimization and social media management, as this area can help you to increase your targeted customer base greatly. Print ads can also help you improve your business. Print ads include flyers, mailers, postcards and newspaper ads. Lastly, set some money aside for graphic design and signage. Having a visible logo that people recognize can help to improve brand awareness. And signage can help those walking or driving by to recognize your store and entice them to come in.
Here at The Redirections Group, we can help you with your businesses marketing needs. Our experienced custom sign shop that services Cleveland, Cincinnati, and Columbus works to help business owners find and represent their brand. Contact us today to set up a consultation!