Marketing in small businesses is a complicated thing. Everyone knows what they need to achieve, but rarely how. And they cling to marketing, which they see as salvation and attribute almost magical powers to it.
The problem of small companies is often that they have a limited budget – either because they underestimate marketing expenses or because they need to primarily invest elsewhere. And it is not uncommon for small companies to have only one person for everything related to marketing and advertising, who should ideally control the possible and the impossible, so implementation ultimately lags. However, even in small companies, marketing expenses have been increasing in recent years. How much should a small company’s advertising budget be and how to balance it correctly?
What is the average advertising budget for small businesses?
Hubspot reports that the average company spend last year was 8.7% of total revenue. According to Salesforce, B2C companies should spend 15% of their revenue on PPC campaigns . So there is still room for improvement. However, the mexico mobile database amount of the budget is not the only factor that needs to be addressed. It is also important to optimally allocate the budget to different types of advertising in order to achieve optimal marketing impact. In doing so, it is necessary to distinguish between offline advertising and online advertising.
Offline advertising
Offline advertising includes any technique used to increase brand awareness that does not involve the Internet. Its disadvantage is that it is more difficult to measure. It is a traditional type of advertising that plays a specific role in small business marketing. Types of offline advertising include, but are not limited to:
- local or regional press,
- advertising on radio and television,
- business publications,
- business cards,
- promotional items,
- advertising boards and billboards,
- leaflets and posters,
- participation in events and fairs,
- telemarketing,
- demonstration events.
Online advertising
Online advertising is any promotion of products or services that is based on the use of the Internet. It is focused on spreading brand digital marketing strategy: a guide to success awareness, building relationships with customers and, of course, increasing sales. Compared to offline advertising, it allows for precise targeting and can be easily measured and evaluated. Types of online advertising include, among others:
- web presentation,
- mobile advertising,
- online banners,
- SEO optimization,
- PPC campaigns,
- email campaigns,
- social media marketing.
Average small business marketing budget by industry
Successful advertising spending varies by industry. Last year, businesses spent 8.7% of their revenue on marketing. But many companies are nowhere near that average spending level, as shown in this industry breakdown:
- Real estate agencies and brokers spend approximately 3.84%.
- Furniture stores about 4%.
- Beverage production Small business advertising about 2.73%.
- Restaurants and other catering establishments 1.93%.
A number of factors determine the ej leads marketing budget for small businesses, which is part of a business plan. Businesses should clarify where the business is headed and set adequate growth goals that must be in line with marketing and sales. In addition, when considering the budget, they should take into account the age of the business . Starting businesses rarely have enough money for everything, but they really need marketing.