How Much Should You Spend on Marketing?
Money talks. But actually, it doesn’t – it can often be the biggest hurdle for companies across all of their activity.
Do you face the budget challenge? Are you questioning how much to allocate to marketing activity?
We work with clients across various sectors and of all shapes and sizes. One thing they all have in common is the budget question. How much should they invest into a marketing campaign? What will the ROI be on such expenditure?
According to the Economic Journal in 2017 large organisations allocated 13% of total revenue to marketing, whilst SMEs allocated 10% of gross revenue to marketing. There is no hard or fast rule unfortunately and often enough budget can be the main barrier in the way of a marketing project getting started.
When initially working with clients we seek to identify the overall challenge for the business or the desired solution. After this it is really important to determine the strategic goals and how they can inform the marketing objectives and ultimately the return on investment. Within this it is recommended to put the client or the customer in the centre of all discussions. Do you know the lifetime value of your existing clients? How much are they worth and what is the current conversion rate from enquiry to sale?
After this fact find, in some scenarios the marketing solution and objectives are different to what the business originally anticipated.
Only then can we talk money.
Get in touch today, even as a sounding board to plan out your budgets.