Small businesses rely on marketing today more than ever before as it is the most effective way to reach target consumers and outpace competitors. So, how much should a startup spend on marketing?
As you plan your marketing budget, be sure to consider allocations to the following marketing efforts:
Marketing trends have shifted online, and firms are spending 40 percent of their marketing budgets on online marketing endeavors. The online transition will only continue to unfold, and we can expect to see the same reflected in marketing budget allocations, increasing the percentage of budget dedicated to online efforts.
Search Engine Marketing
Search engine marketing includes all efforts toward making sure your brand shows up toward the top or at least on the first page of search engine ranking when consumers type in keywords relevant to your products, services or brand.
Online display ads such as banner ads, online video and other search engine results page tactics can be costly in their creation and placement. The cost is typically worth the result, grabbing the attention of consumers and directing them via mixed media to your website.
Social media keeps on making its way into the coziest parts of our lives, and it hasn’t shown signs of backing down in the realm of advertising, either. Marketers currently spend about 25 percent of their marketing budgets on social media advertising. Marketing spend for social will continue to increase as algorithms shift away from brand content, triggering a spike in advertising demand.
Marketing on mobile devices should not actually make up its own portion of the budget. Instead, mobile should be included as a priority channel for all marketing and advertising efforts, always allocating budget to this extension.
Digital marketing is picking up its demand for marketing budget allocation as online video surpasses all other forms of media consumption by audiences on most platforms.
Online advertising includes display advertising, paid search, email marketing and social media advertising. By 2021, experts predict that over 45% of advertising budgets will be allocated toward online advertising.
To learn more about the typical marketing budget for a startup or which marketing strategies are the most effective for your brand development and business goals, reach out to our team at Rosy Strategies.