Marketing and advertising are some of the most important and essential aspects of planning and maintaining a business. To execute a good marketing plan that will be sure to promote growth, you need to perfect your budget and maximize every cent spent. Here’s a few tips about planning a great advertising budget:
Define Marketing Within Your Main Budget
According to Entrepreneur, a new company, defined as one to five years old, should devote about 12% to 20% of gross revenue to marketing. An old company, defined as five years or older, needs to devote between 6% and 12% annually. The marketplace has evolved to be extremely competitive. It’s rare to find a truly niche product, and with product development rates and online advertising usage higher than ever, it’s important to give your company an edge in advertising by having a strong defined budget.
Define What Areas Need the Most Attention
Once you have an overall marketing and advertising budget for your company, your next step should be to determine how to allocate your budget into areas of advertising that suit your needs. How do you want to market your business to your customers? What target customers do you want to reach? What media do you want to use? Are you interested in traditional media like billboards, newspaper and TV or are you interested in using digital solutions found with Google AdWords or social media advertising? These are all questions you need to ask yourself and discuss with your advertising agency.
Track How Your Ad Dollars Have Been Utilized
It’s easiest to maximize a budget when you can see how your past budgets have performed. By looking at the results and return on investment, you’ll be able to determine what areas are lacking in performance and which areas could use a budget cut or increase in spend. This way, you know what works and no penny goes to waste.
BG Digital Group can help you manage and plan your marketing budget, no matter the age of your company or the size of your budget. Regardless of budget size, we will help you maximize every bit of your monies. Give us a call today to see what we can do for you and how we can help you reach your business goals.