The marketing budget for small businesses is a serious consideration as business owners head off toward new endeavors. Marketing arms branch wide and far, meaning their reach is incredible, but so is their investment.
But exactly how much is that investment? It’s a great question, and the average marketing cost for small business varies per company and business goals. Typically, marketing budgets are averaging between 4 and 12 percent of total company revenue.
However, smaller companies are likely to spend a higher percentage of total revenue and new businesses are likely to make more substantial initial investments.
As small businesses plot their marketing budgets, it is important to consider the resources that are currently available, including disposable income, consistent sales and projected sales. Owners must consider which media are the most advantageous to their consumers and brand and research the most effective modes of communication that will serve as pillars in their strategy.
Focus on Digital Marketing
Traditional marketing investment continues to decrease (this isn’t the same as becoming obsolete), and digital marketing spending increases each year. Digital marketing is arguably one of the most pillars of new business development which is why today, digital marketing spend should be hovering at about 35 percent of all marketing dollars invested.
The trend toward digital marketing has continued to steadily increase because after the initial digital marketing investment, ROI is significant. Digital marketing investments include a website, SEO, email, social media and more.
If you are ready to ramp up your small business, reach out to our team at Rosy Strategies. We will walk you through the marketing basics, the average advertising costs for small business and an appropriate strategy to help you fulfill your business goals and needs.