If you own a small to medium sized business, you may wonder how much to spend on advertising. What return on investment can you expect from hiring professionals with years of experience in the game? You may also be considering what aspects of marketing may be worth pursuing “in-house”?
First of all, depending on which industry your business is in, companies should spend approximately 5% of total revenues on marketing to maintain their current position.
If you would like to grow your business, the marketing budget needs to increase, usually to at least 10% of revenues.
Highly competitive markets such as retail and consumer products will need to fork out many more dollars to keep and grow their market shares – more like 20-50%.
Using this general rule of thumb, you can calculate a reasonable marketing and advertising budget for your business that fits with your business plan and goals.
This is the equation from frog-dog.com:
- Total Revenue x 5% = Marketing budget required to maintain current awareness and visibility
- Total Revenue x 10% = Marketing budget required to grow and gain market share
Implementing a solid online marketing strategy that includes components such as PPC advertising, search engine optimization, mobile apps and a responsive website, can yield massive market gains.
Take this testimonial from Oracast clients Shell Canada for example:
“The web application that Oracast built us has paid for itself hundreds of times over, and we continue to add features each year to improve our operations.”
Or this testimonial from Snowvalley:
“The build of our new website better reflects our company and is much more helpful to our customer base, as seen by the growth in the number of website viewers increasing by 20%!”
There is no doubt getting experts to work on your business for you can produce profitable results, but what if you have a very limited budget? What can realistically be done in-house?
We recommend that if you do have the time and in-house resources, some aspects of marketing can be achieved successfully. These include an email marketing campaign, social media marketing, such as regularly posting on your Facebook and Twitter pages, and regularly posting on your blog.
No one knows your business better than you do, and positioning yourself as an expert in the field via content marketing can go a long way. If you need to find or create graphics or video to go with the content marketing, we recommend tapping into the endless resources and advice online. A word of caution: do your research and get some basic skills down before going ahead on your own. Take a copywriting class. Learn how to handle graphics, file formats and file transfer protocols if you haven’t had a lot of experience with that already.
Creating a great website or mobile app, doing SEO well, running a PPC ad campaign all involve steep learning curves that usually require a whole team of diverse and skilled individuals that have years of experience to execute well. These aspects of marketing are better left to a well-rounded team.
Good luck! And if you do need a little help along the way, Oracast has the years of experience and diverse team you may just be looking for.