What Marketing Budget Will Make Your Business Competitive?:
Marketing budget depends on the industry and your business niche. There are many factors that affect the marketing budget, such as the industry you're in, your target market, your products or services, and your marketing strategy.
Marketing Budget To Make Business Competitive:
Here are some guidelines on how much to spend on marketing:
If you're starting a business in an expensive industry (such as real estate), start with a low budget.
Make sure your marketing is targeted to your ideal customers.
If you're starting a business in a popular area with a limited market or buyer pool, you can start with a higher budget. This will allow you to reach more people with your message.
If your business has high startup costs or you have to buy expensive machinery or equipment, you can budget more for marketing expenses.
You can keep your marketing budget low if you know that you have high-quality products or services that are hard to imitate.
As a thumb rule, to begin with, a marketing budget of 10–15 % should suffice which may be adjusted later or in the future based on ongoing trends.
If the business is already up and running, 5–10% of the average sales turnover over the past 4–6 months be enough.
Pro-Tip 1: If you're planning on investing in SEO or content creation, for example, it will likely require a slightly higher amount than if you're solely focused on social media marketing.
Interesting Stats About Marketing Budget:
“Performance marketing claims 45.7% of the mobile ads budget, exceeding brand marketing at 41.4%”c – Business of Apps
“Most marketing budgets as they stand prioritize email — a good start. Seventy-eight percent of marketers surveyed say email is given priority in their budget, followed by social media (66%) and SEO/content marketing (56%)”– MarTech
“Social media marketing is the most popular digital marketing strategy, with 61% of B2B marketing budgets including allocations for it. The next most popular were digital advertising (50%), email marketing (48%), and websites and blogs (45%)” – MarTech
“Encouragingly, 44% of respondents expect to increase their budget specifically for performance marketing, making it the leading area for anticipated budget growth among the options we asked about” – The 2023 CMO State of the Union Report by Wunderkind
“Brand marketing typically receives a significant portion of the overall marketing budget, with 26% of marketing executives indicating it as their top investment for 2023” – The 2023 CMO State of the Union Report by Wunderkind
“65% of companies increased their mobile ad budgets” – Business of Apps
“Event marketing occupies 21% of most corporate marketing budgets, according to one study. That's a lot of money, time, and effort going into event marketing” – MarketingProfs
“It appears that B2B marketers are closely aligning budgets with the heaviest revenue drivers, with social media and content marketing, their top channels for revenue, over 50% likely to see increases” - 2023 State of B2B Digital Marketing Report by Wpromote
“A combination of paid marketing and organic growth is the best way to build a social media brand. Use social ads, sponsored content or boosted posts to improve reach. As a rule of thumb, social media budgets have averaged around 14% to 15% of marketing spend since 2021” – Sprout Social
“B2B businesses devote an average of 33% of their marketing budget to content marketing” – Siege Media
“The most common SEO budget range is $1,000-$5,000 USD, with 28.6% of responses” – The State of SEO 2024 by Search Engine Journal
Pro-Tip 2: Don't overlook content repurposing and e-mail marketing strategies, which will help you save money on marketing in the long run while also increasing conversions and customer acquisition chances.
Overall, to be competitive in your market, you need to spend money on marketing to reach as many people as possible to drive the outcomes as per your business and marketing goals.
Here's related information that you may also find helpful – Marketing ROI Statistics [Unlock the trends, insights, and strategies].
P.S: Ready to [unlock the power of digital marketing] and drive [your] business forward? – Access my forum today
P.S.S: Please don’t forget to forward this blog post to your network so they can get the best tips, practices, strategies, education, resources, & tools to help their businesses grow [sharing is caring].