Ingrid Marketing

Ingrid, Smart Cannabis PR and Marketing. San Francisco, CA

Sales & Marketing

Maximize Your Marketing Budget

Maximize Your Marketing Budget

Marketing budgets are a necessary part of advertising. They help you make the most of the marketing dollars that you have available to you for your business. But, what is your typical marketing budget and what do you allocate it to? Here, we will explore typical marketing budgets by industry, to help you see how your budget compares with competitors.

In most instances, the typical marketing budget you might be familiar with is the one associated with newspapers, television, radio, or billboards. The total budget might include your actual costs for the various mediums mentioned above, but it also includes one very important expense: rent. For many small businesses, the actual costs of running the business may be the most expensive part of any budget, especially if that business is on a small scale. Rent helps you keep the lights on and the magazines in print, without straining your wallet.

If you want to measure your marketing budget as a percentage of revenue, it can often be a little more difficult to figure out. First, you’ll need to know your revenue level (based on sales figures for the past year). Second, you’ll need to know your expenses for each different type of medium in order to properly allocate your marketing budget. Here’s a quick breakdown:

  • Internet marketing teams may spend almost half of their budget on pay-per-click advertising (PPC) compared to social media marketing teams. A b2b website doesn’t have the same cachet as PPC, but it can still be quite efficient if you plan carefully. A PPC budget is based on the cost per click and usually requires months of research before you find a profitable niche. A b2b site might take a month or longer to find a good audience, but that still means you have less to spend.
  • Another way of keeping track of your typical marketing budgets is to look at how much you spend on each channel. Have you overspend on pay-per-click? Is your marketing budget dollar-for-dollar on ads versus content? There’s obviously a difference between those two costs and the costs associated with purchasing traffic, which should be a major part of any budget. If you’ve got a substantial chunk of change left on your advertising costs, that could mean a serious problem.

Marketing content is a little trickier than PPC, since you’re trying to appeal to a very specific type of consumer. The average marketing percentage has shifted away from b2b and toward c2c, but that doesn’t necessarily mean you won’t make money with content. If you provide high quality content, your revenue will continue to rise. That’s because it’s a lot easier to sell a product or service when the customer isn’t looking for it, as they are when they’re actively searching for it. A lot of companies believe they have to push their offer if they expect revenue to come in – but that’s just not true.

Every business needs to cut their budget, especially during tough economic times. So it’s critical that you keep an eye on your company budget. But you don’t want to cut too much; otherwise, you’ll end up with empty pockets while you continue to pay your marketing expenses. Instead, you need to evaluate your marketing expenses each quarter, keeping a close eye on how much you’re spending in order to make sure you aren’t spending more than you need to. Doing so will prevent you from inadvertently under-allocating your marketing budget.

Marketing can be a great source of revenue, but it isn’t nearly as lucrative as it used to be. This is why it’s so important to stay on top of your marketing spend so you don’t end up spending too much on advertising that won’t bring in the kind of sales revenue that you’re after. So look at your budget each quarter to ensure you are not overspending, and you’ll increase your chances of earning more profit through employing other marketing methods.

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