The Importance of a Marketing Budget
In today’s current digital age, brands are hitting consumers in more ways than ever. To keep up with the vast number of channels that can be used for marketing, it’s incredibly important to establish a budget dedicated solely to your organization’s marketing efforts.
You may be asking yourself “should I really need to be spending a substantial amount of our budget on marketing?” Absolutely! Just about every business uses marketing to promote and sell their brand in one way or another. However, depending on your industry and business goals, marketing budgets will vary.
Typically, you should invest anywhere from 2-10% of your annual revenue on marketing. If your annual revenue is one million dollars, anywhere from $20,000-$100,000 should be invested in your marketing efforts. The higher the amount means more consistent growth for your brand when it comes to awareness, traffic, and ultimately – conversions.
Marketing does not solely consist of your advertising efforts. Elements such as website design, maintenance, social media, search engine optimization (SEO), copywriting, strategy, and planning are all aspects – among others – that fall under the marketing budget umbrella. The effective combination of all of these tools and strategies is only possible if specific percentages of your annual marketing budget are allocated to each area based on priorities and needs specific to your business goals. That’s where a full-service ad agency would come into play, helping you to establish a strategic marketing and media plan that breaks down how your annual marketing budget should be spent in order to effectively achieve your objectives.
Take a look at what your competitors are doing when it comes to their marketing. If their efforts are lackluster or non-existent, then you should take the opportunity to get ahead of your competition.
Investing in your marketing not only has the potential to expand your audience but also establish your company as a reliable and trustworthy one. Brands that remain updated on current events and trends within their industry provide relevance to consumers that creates a platform for continued engagement.
The reasons for developing a marketing plan and budget are valid, especially in today’s digital age. With new forms of media and communication arising seemingly every day, it is important to understand how to effectively use each one to promote your brand, or even determine which channels are most effective for your goals specifically.
The bottom line: determining a marketing budget takes time and precision. Understanding actual costs for critical areas can become overwhelming but is crucial to being successful with your goals. Need help? Our full-service in-house agency is here. Reach out to us at any time by sending an email to firstname.lastname@example.org. Or give us a call at 443-949-9284.