Written by Sarah J. Grezlik, owner of Malachi Marketing LLC
Marketing? Advertising? Online Advertising, Websites, Blogging, Social Media, Radio, Newspaper, Yellow Pages, Television, Promotional Products, Coupon Clippers, Weekly’s, Daily’s, SEO, SMO, APPS, the list goes on and on.
How do you know where is the best place to spend your advertising dollars?
What is beneficial to your business?
Malachi Marketing LLC has a few tips to share with you to make your advertising dollars go farther.
Number one: before you go any farther and make any decisions at all about advertising stop and get to know your books. Yes that’s right, you need to know how much money you have to spend on advertising before you can take another step.
You must have a budget in place in order for your company to run efficiently, and a part of that budget needs to be a portion of your gross income that is set aside for advertising.
How do you come up with the correct amount to spend in advertising?
You first need to recognize where your business stands in terms of wants and needs for your clientele. Are you a grocery store that your customers will re-visit on a regular basis, or are you a car dealer that will not see your customer for at least two to five years between sales?
Is your location easy to find and great road frontage or are you tucked away in a back alley or on a country road in the middle of nowhere?
Do you have prices that fit every level of customer needs or are your price points targeting a higher income level?
The answers to these questions will help you to determine what percentage of your gross total needs to be invested in advertising.
The average business in America will invest between 2-7% of their annual gross income back into marketing their business. A well established business with a regular consistent clientele can get away with a 2% budget.
A business that is brand new and working to build their reputation and brand their company name may need to go as high as 7% until they are established. The average business will consistently invest between 3-4% annually in advertising.
Now that you have chosen which percentage you are comfortable investing in your company you can start to put a plan together for your annual advertising budget.
Think of it like a pie. To make this simple and easy to follow lets take a nice rounded number and a nice rounded equal part pie to give you an idea on how to start the set up of your budget.
Let’s start with a $40,000 annual advertising budget. (As your business grows, your budget will increase automatically with your income based on the percentage that you choose to invest in advertising).
Let’s say for the sake of making this simple that you are going to split your pie in equal fourths. Let’s say that you have decided that you are interested in advertising with your local newspaper, local radio stations, television and internet services. If we take our $40,000 and divide it equally between the four selections that we have made we have decided that we are going to invest $10,000 in each venue.
Now that we have chosen our venues we can now focus on how we are going to spend our annual budget. Ultimately what that means to you is this …. you can spend $10,000 in newspaper advertising, $10,000 in radio advertising, $10,000 in television advertising and finally $10,000 in internet services.
The next step is to put a plan into motion for the year. You have twelve months to look at spreading your $10,000 budget in. For the most part your budget should be evenly spent throughout the year.
But there are a few things to keep in mind that may make you spend more of your budget in one month compared to another. One of those things is your prime selling season, another would be an Anniversary Sale or Inventory Reduction Sale. During those times you will need to spend heavier to promote your event or season.
Since you should have a consistent message all the time you should not leave certain months out because it is your slow time.
During your slow times it is even more important to keep your business name top of mind. When your customer is ready to make the buying decision, you want to be the first one that comes to mind ultimately giving you the edge over your competition.
Having a well-rounded budget gives you more control over your advertising. In the end it also gives you more buying power because you will be more focused on getting the best bang for your buck.
There are many more advertising tips that will enhance your advertising campaigns and I will discuss those in future articles. But first …. know your books, and then you will be ready to take the next step.
At Malachi Marketing LLC, we offer services to help you with these big decisions and we do the research for you to make sure that the venues that you are considering are worth your investment. To contact me or one of my associates for assistance with your advertising, call us at 740-269-2705 or 330-827-8394. You can email us at firstname.lastname@example.org.
Malachi Marketing LLC can be reached at 330-827-8394. We have Independent Sales Consultants to help you with all of your marketing needs. From Print Products to Marketing Strategies including Co-op Reimbursement Management.