You’ve likely begun planning for next year, and you might be wondering how much you should be spending on marketing. This is a common question!
Well, one widely-accepted benchmark used across industries is the 5% Rule. In other words, spend approximately 5% of your sales revenue on your marketing budget.
The suggested marketing budget percentage is just that – a suggestion. Every business has unique factors and specific goals that might make that number higher. But, 5% is a great starting point if your marketing foundation is solid and your primary goal is to maintain your positioning.
The next obvious question is: How do you spend that 5%?
In general, make sure that you’re feeding the 3 pillars of digital marketing:
1 – Your Digital Brand
What do we mean by your digital brand? Try googling your business. What you see is how your brand is portrayed to your customers. Make sure each element of your digital brand is sending the right message.
2 – Your Website/Storefront
Does your website match your brand? Is it mobile-friendly and does it provide a clear path for the user to convert into a paying customer? The experts say you should plan to update your website every 3 to 5 years, as this will ensure that your messaging is still relevant and your website is found by the people looking for you!
3- Your Inbound Marketing
From Facebook posts to emails to ads on Youtube and Google Display, make sure to prioritize investment in the digital marketing you use to generate traffic.
Without a solid digital marketing foundation, your day-to-day marketing activities could range anywhere from “not very effective” to “a waste of money.”
Research and careful evaluation are the keys to thriving in our era of customer-centricity. Take the time to evaluate your marketing budget and activities and you’ll be off to a great start! If you have questions about your digital marketing priorities, feel free to reach out to Sarah at [email protected]. She’s a wealth of information and she’s always up for a challenge!