How to Determine the Perfect Marketing Budget for Your Business

So now, you have a killer product/service which everyone will love it. Your product/service might even become a game changer in the industry - what's next? Remember this thumb rule - No matter how good your product is, without marketing nobody will even know that you exist. This is an area where most business owners fall short and smart business owners capitalize on.

However, once you have made a vow to create advertisements for your product, the next thing you need to figure out is allocating a budget for your marketing. You might have a dozen things in your budget to figure out like paying your marketing team, spending on social media and other promotions. Here are some tips from us which might help you down the road while determining your perfect marketing budget.

The base camp
Most of us scratch our heads when we hear the word 'Budget'. Reason being is most of us don't know how to start with - and that's okay. According to Laurel Mintz, Founder of Elevate My Brand, startup companies with an industry experience of 1-5 years invest 12-20% of their gross or projected revenue. Once they establish themselves and cross 5+ years the number can change up to 6-12%.

Don't look surprised by these numbers, because creating a brand image doesn't happen overnight. During your initial years, you have the responsibility of attracting loyal customers and building a unique consumer experience. Once you build a strong customer base and a decent brand recognition you can go ahead 
and decrease your budget (if you feel its too tight).

Assigning the funds
As a business owner, by now you are aware that the things that worked in marketing 5 years ago is not what works in marketing today. So before allocating your funds do some research, in terms of which categories are the smartest to invest in?

Some of the examples for categories are Digital Ads. Digital ads keep growing, and in 2017, digital ads are projected to surpass traditional TV advertising spend for the first time. Setting up an ad in social media is one of the easiest and inexpensive ways to begin your marketing. 

Even in this digital era one of the categories that survived the digital test of time is 'SEO.' The way people search may have changed however, SEO is still a powerful category for lead generation. Hiring a consultant or having an in-house resource for SEO is definitely going to improve your google rank.

Another major category today is automation. Whether it’s a social media/email platform, analytics tracking that auto-populate reports, or customer relationship managers with built-in follow-up options, automation saves you time. It streamlines processes and allows you to focus on future thinking instead of being caught up in day-to-day repetitiveness.

All the research that you have done on the internet and the world cannot completely determine how your audience will respond to your brand. Reason being is something might have worked for someone else in the industry, the same might not work for u. However, surveying your analytics and following the industry best practices can point you in the right direction. Remember, a strategy for smart marketing is a strategy for success.

Source: GetResponse

Posted on: 07/11/17

Rahul Krishnan

- Content Writer