Investing in marketing isn't just another expense you should check off—it's a strategy for growth and thus, more revenue. But how much should you actually spend? There’s lots of info around the internet that range from 3% to 20%! Let's break it down and give you our opinion to give your business the best potential for success.
Typical Marketing Expenses
What are “marketing expenses?” They are any costs associated with promoting and marketing a business, brand, governmental agency, or non-profit organization and their products or services. This can be physical products like promotional merchandise, digital products like a new website or recruitment video, and “ad spend,” or money paid directly to advertisers like Meta [Facebook].
To make it simple for our purposes, marketing expenses can be divided into two categories: one-time and ongoing.
One-Time Expenses
1. Branding/Re-Branding and Logo Design: First impressions matter. Investing in professional branding sets the tone for your business.
2. Website Development: Your website is your digital storefront and usually the first thing people see when deciding on a vendor. A well-designed, user-friendly site is essential for growth.
3. Initial Market Research: Understanding your audience and competitors is crucial before launching any campaigns. There’s no sense in serving ads to people who do not utilize what you do. It makes the on-going marketing much easier too!
Ongoing Expenses
1. Digital Advertising: Google Ads, Facebook Ads, and other PPC campaigns need regular investment. Businesses are on track to spend $219 billion this year on social media advertising alone.
2. Content Creation: Blogs, videos, and social media posts require consistent updates to keep your brand at the top of the list and relevant. If you can provide free value to your customers and audience in the form of tips, giveaways, discounts, and other campaigns, they’re more likely to stay engaged with you.
3. SEO Services: Optimizing your website, social media accounts, and Google Business Profile for search engines is an ongoing process that pays dividends when you invest to staying on top of it.
Budget Guidelines
B2B Businesses
Business to Business (B2B) companies generally allocate 2-5% of their revenue to marketing expenses. The focus is often on lead generation, content marketing, and relationship-building strategies with existing and new clients, partners, and contractors. If your monthly sales are $65,000, you should allocate $1,300 - $3,250 monthly to your marketing efforts.
B2C Businesses
Business to Consumer (B2C) companies usually spend more—around 5-10% of their revenue. This is the share of the market that companies are fighting over…the consumer. The emphasis here is on reaching the right audience for your service or products and driving quick sales through tailored advertising and promotional campaigns. If your monthly sales are the same $65,000 as your B2B counterpart, you should be spending $3,250 - $6,500 per month to keep your existing customers and gain new ones.
Best Bang for Your Buck
We don’t mean to overwhelm you! Even on a limited budget, you can still make a significant impact, so take a deep breath! Here are just three cost-effective strategies you can implement today:
1. Social Media Marketing: Engaging with your audience on platforms like Facebook, Instagram, and LinkedIn can yield high returns; but it takes time and commitment. Even with ad spend, you have to build trust. At OS Media Group, we offer social media management services to help you build a strong online presence without breaking the bank or pulling your hair out.
2. Email Marketing: It's one of the most cost-effective ways to reach your audience. Regular newsletters and promotional emails keep your brand top of mind to your existing customers and introduce your brand to potential customers. Our email marketing services can help you craft compelling messages that convert.
3. Local SEO: Optimizing your online presence for local searches can drive traffic to your business. This includes managing online reviews and local listings. Our SEO (Search Engine Optimization) services ensure your business stands out above the rest in the local search results.
What are you waiting for?
Investing in marketing is crucial for your business’s growth. No matter how great you are at what you do, not everybody knows who you are. Don’t be shy, get to bragging! At OS Media Group, we’re committed to being good stewards of your marketing budget if you want us to brag for you (we’re pretty great at it).
Whether you need help with social media, email marketing, or SEO, we have the expertise to make your dollars work harder so you don’t have to. Ready to maximize your marketing investment?
Great marketing is worth it’s weight in gold. If you’re serious about growing your business and brand, reach out and we’ll change that.
Kent Keller is a seasoned Brand Consultant, Social Media Manager, and Copywriter. He also acts as the Chief Executive Officer of OS Media Group. With over a decade of experience as a police officer and nearly five years as the Public Information Officer and Media Relations Manager for a prominent police agency, Kent brings a wealth of expertise to the proverbial table. His background, combined with his successes in developing numerous marketing campaigns and brand strategies, uniquely positions him to assist you in effectively engaging with your customers or community members.
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