Advertising can be very expensive and the problem with that is without any particular guidelines or proper financial management you can end up with issues. That’s why the best thing that you can do is to just take your time and adapt to the process in a great manner. Thankfully the marketing math becomes better and better, to the point where you will be able to use it to lower the costs and reap the benefits in a proper manner.
How can you determine the advertising budget?
This is a tricky thing to pursue as it always ends up being a challenge and you really have to work on it the right way. Usually, you use a percentage of the profit to handle this. But what percentage is good enough? Most of the time companies will set aside anywhere from 2% to 5% of the total revenue for advertising. Depending on the situation you will find yourself paying from 3000 to 5000 ZAR p/m / $300 to $500 p/m.
Since this is a general number, things can easily change. And that’s why you need to take your time, adapt to the situation and just improve on that as you go along. The great thing about using up to 5% is that you’re not risking a whole lot but at the same time you have enough to promote your business wisely. Adaptability is key with this kind of stuff, so you really have to pull through and just go ahead to see how it works. The potential is definitely great, as long as you know what you are getting into and what you can expect. It will be an amazing result every time if you do it right, so you might as well pursue such an idea and just go from there if possible.
Study the competition
You won’t know the exact numbers, but you can figure out the budget they have based on the scope of their campaign. And when you know this info, you just adapt and go from there. It’s always great to have this kind of information ready to go, so the thing you want to do is to handle it adequately and just enjoy the experience the best way that you can.
The challenge with setting a Marketing budget is that every business relies on marketing differently. If you’re a new business you need a lot of SEO and ads, so you can go well past the 5% budget. But if your business is already established in a way, then it does make sense to at least try and give it a shot if you can. It’s totally going to be worth it, so check it and enjoy the process, it will pay off big time without any issues and challenges.
How to make advertising affordable with the use of marketing math, determining a budget for ads from a percentage of profit-making digital marketing affordable to any industry. Recommended starting budgets to start with