How Much Should Your Business Budget For Marketing?

If you have never invested money into the marketing of your business, it is likely you have already done some research on where to start! There is a lot of advice across the internet, including articles, marketing agency and social media at your disposal.

If we were to summarise the large majority of the advice within articles, it would be; Without any form of marketing, it will prove to be very difficult to grow your brand in all the noise of your competitors. This is a simple statement, without exposure, revenue growth will be stunted.

This begs the question, how much money is enough to start? We aim to fulfil this question by the end of the article by helping you understand your options and where to start in your digital marketing journey.

How Much Should You Invest In Marketing?

Understandably, as a business owner, you always like to see a healthy ROI when it comes to analysing the potential worth of any speculative cost; However, without a marketing agency understanding your brand, business goals, profit margins and competition, there should be no set marketing retainer cost sitting in front of you. This is typically called package marketing and is not bespoke to your business.

Therefore, there is a wide range of factors that will dictate what a recommended marketing budget should typically start at. We would advise you to base the initial figure at around 10-15% of your yearly revenue to earmark to a marketing budget. This will give you a good idea of how many channels you can target, in what order of priority and how aggressive you can be within each channel (eg, Organic, Social, Paid Advertising, Email, Print, etc).

Which Channels Are You Looking To Market On?

As seen above, there is a wide range of channels your business can market within. However, the industry that you are in, the competition, business goals, relevancy to your target audiences and budget will greatly define which you should, and can, penetrate.

In order to help you and any potential agency to take the next step towards a strategy, we would recommend completing the following exercise:

Take the list of marketing channels below and re-arrange them in order of priority with a percentage of how much budget you would like to invest in each.

Have You Calculated Potential Return On Investment?

Before completing the exercise above, have you thought about the potential ROI for each channel? Calculating your potential Return on Ad Spend (ROAS) is critical for you to evaluate success. This will undoubtedly help you to understand how your budget should be divided, what channel is working hardest to generate results and where you should continue to spend and concentrate your focus in the future.

In addition to the obvious cost of a specific platform, for example, Google Ads Click Budget, Social Ads Budget, Print Costs etc – you also want to account for “hidden” costs that will affect the Return on Investment of the channel.

These costs could include, expenses of a digital marketing agency, cost of software needed (CRM, website costs etc) and time needed by you/employees.

Remember, the recommended approach is to always test, learn, measure, optimise and then grow. Avoid unnecessary budget wastage in the early test phase, and only concentrate the efforts into those areas of your business which you feel will have the best chances of success. Once you have adopted a ‘winning formula’ then this strategy and process can be rolled out to other areas of your business.

How Are Your Competitors Marketing?

Looking at both your successful and unsuccessful competitors is a really smart task that will give you a greater understanding of what direction you should head towards and equally avoid. Using Search tools like SEMrush, Search Metrics and SERP Tracking will help you to see your competitors growth through Google and potentially show you what channel has really worked for their success.

Finding The Perfect Marketing Agency To Work With

The most difficult part of starting is knowing where to start… In order to formulate a marketing strategy that will work, is it imperative that your chosen marketing agency understands and partners with your brand as if it was their own.

With over 20 years of experience within the digital marketing industry, Brave Agency has built a strong local reputation for successful growing SME’s through various proven marketing channels with a results-focused approach. From E-commerce to Brochure websites, we pride ourselves on yielding results for our clients. However, this is easily said: So, take a look for yourself through our case studies!

Let Brave help you take the first steps to your businesses marketing success with three simple words – Get In Touch – It all starts here

Written by Gareth Torrance

Hello there. I'm Gareth, the Search Engine Marketing Lead at Brave. With almost a decade of experience in PPC and SEO, I've seen everything from Pandas and Penguins to the horrible time that was Mobilegeddon. As a Google Ads Certified Google Specialist, I have lived through almost every major shift in the industry! And that makes me feel old.

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