Planning your marketing budget can be quite the headache. A common problem for small businesses and startups is trying to figure out how much they should be spending on digital marketing services to thrive in their industry.
Although it all comes down to industry type, for example, consumer products or retail often spend 20-50% of their average monthly net revenue on their marketing, there is a general guide you can follow to help when trying to determining how much your business’s marketing budget should be:
5-10% OF NET REVENUE: Spend 5% of your company’s net revenue to keep your current position.
10-20% OF NET REVENUE: Spend on average 10% of your company’s net revenue to gain market share in your industry.
Now, you may be wondering how much you can expect to receive in return for your marketing efforts. Unfortunately, there is no easy answer. Some marketing strategies take longer to yield results than others. For example, marketing tactics based solely on branding and organic discovery may have you waiting longer for results compared to PPC ads (Google Adwords) which will usually give you an idea about how your return will look fairly quickly. It’s important to make sure that the team responsible for your marketing solutions should be able to provide a diversified marketing strategy that goes out to the right audience not to waste your time.
Lycos Creative specializes in marketing solutions that will convert. Contact us today for a free consultation!