How Local Businesses Should Budget For Marketing

I want you to think about omnipresence in marketing if you’re a local business looking to make an impact. This doesn’t mean you have to be everywhere. But it does mean that you need to be hitting people from a variety of angles.

You may have a larger marketing budget and you’re doing TV advertising or radio advertising or trade shows or Direct Mail. This needs to be a compliment but also a core part of that strategy.

However it’s not going to end there you want to focus on your email marketing, text message marketing. Any type of touchpoint that’s going to increase frequency is something that you have to focus on in 2020 because consumers are now savvier.

The immediate direct response marketing does not work exactly the way that it used to. You have to get in front of people multiple times in order for them to trust you enough to make that buying decision.

What is your marketing budget?

Overall, establish what your company’s marketing budget will be. There is no one right answer. The range is between 3% and even up to 12% of revenue on your marketing that can depend on how aggressively you want to grow.

If you are a new company or an established company, First, identify what the overall marketing budget is based on actual facts. Again everything should be based on real facts and real data.

You’re also going to want to pull all the information you have on cost per lead, cost per acquisition. These very critical numbers that are going to guide you through this strategy.

Those numbers are going to heavily dictate what you should be budgeting on this type of marketing based on what you expect to see. So again, setting those goals is crucial because if I want to see 200 leads coming in per month.

Well, I can’t just throw a dollar amount and say this is our budget and I expect 200 leads. I need to know this is our typical cost per lead. I may not have that data from Facebook and Instagram yet, but that’s a great place for me to start.

How much money will I then have to spend theoretically to be able to get 200 leads?

Again, make sure it’s really based on facts!

If you don’t have those numbers yet, that needs to be a top priority for you. It’s going to be very difficult for you to make educated decisions without that type of information.

Your cost per acquisition is also a really strong number to know because you will be tracking that throughout this process.

If you’re really serious about maximizing your return on investment, so the next thing you need to talk about is are you going to have a testing budget when you first get started on Facebook or Instagram? Or if you’ve already been advertising, you need to test there is no one-size-fits-all method.

There are different audiences and different markets that respond to different things. Again, you don’t want to drag out the process of finding out what they’re responding to. You want to find that out as quickly as possible.

Most importantly find out what’s not working and stop doing that. This is going to save you a lot of money long term. It’s going to save you time and it’s going to expedite the success that you’re going to see. You also want to understand if your offer is proven.

I work with a lot of local businesses that don’t even have an offer. But if you do, has this offer been proven to work? If it does that’s something that you can factor into the budget because you already have a good idea of what may work for your audience.

This is pretty extensive because those things are going to help you. If you do have those things again something to factor in. It will play a part in the results that you’ll see early on. If you do not have an audience you need to understand that you’re essentially the new kid on the block.

Whether you’re just a business that’s never done a lot of advertising or you’re an uber business people don’t know you yet. So you have to be realistic in the time that it’s going to take them to be aware of you and also to buy from you.

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