how much should you spend on marketing

Wondering How Much Should You Spend on Marketing in 2024?

One of the biggest questions when setting a marketing plan is answering, how much should you spend on marketing. There isn’t one fit-all answer. It truly varies depending on a lot of factors.

However, don’t fret conversionMOXY is here to help! In our latest marketing blog, we share more information on factors to consider when setting a marketing budget.

Don’t want to deal with the headache of determining a marketing budget? Ready to launch your marketing efforts today? Then, call our expert team at 800-849-5642 to discuss your unique marketing needs. We will work closely with you to help you grow your business.

In the meantime, read our blog below for more information about determining marketing and ad spend amounts for your business.

What Does My Marketing Budget Entail?

First and foremost, it’s absolutely vital to understand exactly what a marketing budget entails. Whether asking yourself or Google, how much should you spend on marketing, you need to understand all of the complexities of marketing fiscal needs.

So many business owners make the mistake of thinking setting a marketing budget is merely determining their ad spend. In reality, ad spend is only one component of the overall marketing budget.

Therefore, when setting a marketing budget you need to look at ALL the variables that require money, not just ads. Below are the top six variables to think about when creating a marketing budget for your business. These tips are relevant for all sorts of businesses such as restaurants, landscaping companies, auto shops and more.

Six Factors to Consider When Setting a Marketing Budget

Just like when you started your business or created a comprehensive marketing plan, determining how much you should be spending on marketing takes careful consideration. Therefore, we are sharing six things to think about throughout the process of setting your marketing budget.

1. Utilizing Available Marketing Platforms

As mentioned above a marketing budget should include all your marketing efforts, not just ads. Before doing that, determine what your marketing strategy is. The reason for that is to know what marketing platforms and methods will help you achieve your goals best.

Below are some different marketing platforms and tools you need to consider and allot money for these costs.

  • Website
  • Email marketing
  • Search Engine Optimization (SEO)
  • Social media
  • Advertising – Digital and print, if applicable
  • Graphic design
  • Photography and videography
  • Public relations
  • Labor costs – if using an agency, virtual assistant (VA), or outsourcing any of your marketing work

There are a few other smaller marketing platforms, tools, or needs to consider as well. But, the ones listed above are all the major ones to work into your marketing budget.

2. Selecting Advertising Options

This is the part of the budget most people think of when they are trying to answer ‘how much should you spend on marketing’. The first question to ask when setting your advertising budget is who is your target audience? This helps you know where to run ads. Here are some questions to ask yourself when determining advertising options and setting a budget:

  • Do I want to run digital, print, or both types of ads?
  • Which social media platform is my target audience on most?
  • Does geotagging make sense as an ad option for my small business?
  • Where are my competitors advertising their businesses?
  • How long do I want ads to run?
  • Do I have creatives (images and text) for the ads or do I need to hire someone to create those?

When you meet with us for a consultation we will help you work through the answers to these and any other relevant questions.

3. Setting Tracking & ROI Metrics

No marketing plan, strategy, or budget would be complete without determining your return on investment. Tracking all (or any that you’re able to track) marketing and advertising methods helps you figure out your ROI. Just be sure to always set clear, trackable, and realistic goals!

4. Cultivating Partnership and Collaboration Opportunities

From sponsorships to collaborations with local partners these opportunities are sometimes a great marketing option for exposure. When setting your marketing budget, do not forget to add these in. For example, if your business needs to get in front of families, consider sponsoring a local sports team or running ads with the local sports stadium for exposure to local families.

5. Retaining Repeat Customers

While most marketing efforts are focused on gaining new customers, it’s important to not forget about retaining repeat customers as well. Not to mention it’s cheaper to retain previous customers vs. getting new ones. A great way to keep happy customers coming back regularly to your business is to have a robust loyalty program. Click here for our recent blog on loyalty programs to learn more.

6. Consider Marketing Maintenance Needs

Finally, do not forget to factor in marketing maintenance needs into your marketing budget. This includes things like website marketing costs; such as, updates to your website or hosting monthly expenses.

Frequently Asked Questions on Determining Marketing Spend

Still have more questions on setting marketing spend or an ad budget? We’ve compiled the FAQ section below to provide additional information on the topic. Feel free to also call us directly at 800-849-5642 and discuss all your marketing needs with one of our experienced and professional team members.

What percentage of my total revenue should go towards marketing?

This is a tricky question as there is no one answer for any business. As the old expression goes, “You need to spend money to make money.” There is so much forgotten truth in that statement. When a business makes financial cuts, marketing departments and budgets tend to get cut first. However, a company absolutely will not grow without marketing. Therefore, when looking at your company’s budget and % of total income, marketing costs should factor high on the list for funds allocated.

How much should I spend on marketing for my website?

Your website is often the place where most people are sent online to learn more about your business and services or products. It’s often one of the first impressions people get about your business. Accordingly, that means you need to spend money on it to look good. Below are some website marketing costs to factor into your budget.

  • Designing
  • Building
  • Optimizing
  • Maintaining

Can I change or adjust my marketing budget?

Yes! Do not feel your marketing budget is set in stone forever. While we typically recommend you stick to your budget set for the month, quarter, or year; it can change among each of those terms. In fact, it’s good to change it up based on the data you find out when reviewing analytics. You might find you need to shift ad dollars around or focus more on one marketing platform over another.

Stop Wondering How Much Should You Spend on Marketing & Let conversionMOXY Help!

Don’t wait any longer to get the marketing help you need. Call us today at 800-849-5642 and we will walk you through determining your entire marketing budget. Best of all, we are a full-service marketing firm. From designing a beautiful website to running a pay-per-click ad campaign, we’ve got you covered.

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