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How Much Should You Spend on Your Marketing?

This is an important question, and one that can vary depending on the size and age of your business, the industry that you’re in, amongst other factors.

The question you should ask first however, is how much do you want to succeed?

Obviously, spending 80% of your gross annual income isn’t going to be sustainable, and likely won’t guarantee you a big enough return to justify such a spend.

It’s more about smart marketing and investing in the proven methods.

The general rule of thumb is that you should be spending approximately 5%.

This should incorporate your SEO, your Google Adwords, Social Media marketing, sponsorships and other forms of marketing.

The U.S Small Business Administration claim that spending 7 to 8% of your gross revenue, if your earning less than $5 mil in a year, and your after-expenses profit margin is in the 10-12% region.

Again, this is a rule of thumb! Some people may wish to go higher, whilst others might wish to go lower.

For brand-new business, they say that you should be spending 12-20% of gross revenue.

Whereas, the more established businesses should keep it between 6 & 12%.

So, you need to figure out where exactly you fit into these brackets.

Are you long established?

How much gross revenue do you have available to spend after your expenses have been taken into consideration?

Because you don’t want to go too heavy on your investment and suffer.

Then again, if you’re not putting in enough, it could be money wasted.

Build a strong foundation to grow with

Your initial investment in your marketing is the important part.

For example, sinking thousands upon thousands into your marketing is all well and good, if you lack the infrastructure to either convert traffic into customers or deal with the expected growth.

Therefore, you need to invest in laying the foundations before strategizing your marketing campaign and moving forward with it.

Something as simple as hiring a digital marketing agency to assist you with your conversion optimisation, can work wonders.

It’s about creating a website which is clear and concise, easy to navigate and is written in such a way that encourages sales.

This means, in-depth product or service descriptions, with a clear “add to cart” option.

If you were to skip this stage and dive straight into a full-blown marketing campaign, you’d certainly get people to your website, but how many of them will drop off and take their business elsewhere?

What is to be included in your marketing foundation?

  • Brand
  • Marketing strategy
  • Website design & development

Again, without putting any time or effort into those 3 key areas, your marketing efforts will be ineffective, and ultimately a waste of time.

Which is likely the reason why there are many companies out there who shy away from most forms of marketing, dubbing them “pointless,” or “a scam.”

You have to be careful of adopting such a dangerous line of thinking.

The fact is, marketing works well, when done correctly.

It requires time, patience and creativity.

Use a reliable digital marketing agency that can assist you with strategizing your campaign straight away.

What do other companies spend?

Another very important question, and one that can be difficult to identify.

As a rule of thumb, you can guess that most established companies will be spending between 5 & 10% of their gross annual income.

Then again, how can you identify how much they’re turning over?

I guess you could argue that, you shouldn’t worry too much about what other companies are spending.

Instead, you should focus wholeheartedly on what you’re doing.

That being said, you can look at how they’re ranking for their target keywords, particularly if they’re your competitors.

With a reputable digital marketing agency, there are methods that they can use to get a good look at what your competitors are working on in terms of SEO.

This kind of information will be invaluable for planning your own marketing campaign.

That way, you can take steps towards overtaking them in the race and investing a realistic budget in order to get you where you need to be.

You should assume that your competitors are spending somewhere in the average region on their marketing.

Then once you’ve identified the various forms of marketing that they’re working on, it should be simple enough to break down what they’re investing in each.

In any case, you must focus more on what you need to be doing!

Focus on building a strong foundation, set some realistic targets and then get to work!

Set measurable goals

When allocating your budget, first you need to set some realistic, measurable goals.

  • Increase overall website traffic (which can be monitored and recorded using analytics)
  • Increase the amounted of targeted leads reaching your website
  • Grow a new business, or division within your business
  • Push a certain aspect of your business & website and dominate sales

Refine the foundation

It’s all well and good spending time on building a strong foundation, but you have to double check, refine and compare.

  • Is your brand up-to-date and clearly representing your vision, message and overall personality?
  • Is your brand consistent across all media, including social pages etc?
  • What is your website like compared to the competition? Has it been well-opsimised by an experience marketing consultant?
  • What could be hindering your visitors, from being “clicks to customers?”
  • Have you put the correct tools in place to help you measure your success?
  • Do you have a foundation in place to help you cope with the new workload should your marketing campaign kick off?
  • Is your business development strategy in line with your marketing? How solid are your strategies?

Double check, refine and compare.

Then do it again!

But the most important thing of all, is not to remain rigid in your approach.

Be open to new ideas and try to innovate on the go!

Challenge your marketing consultant to share new ideas with you.

Question their methods and try to fully understand the purpose of each medium.

There’s a lot to learn, but if you’re open to it, you can gain an awful lot of valuable information.

Don’t be tight with your budget

There is such a thing as spending too much, however, the more common of the two is those who spend far too little.

You can’t be tight with your budget!

If you want to experience continued success, and to become the dominant figure in your industry, then you need to dip into your profit and start investing in your marketing wisely.

Consider this quote by Henry Ford: “A man who stops advertising to save money is like a man who stops a clock to save time.” You’ve got to get in the race and keep running! That is how you stay on top.

Feeling a little overwhelmed?

Don’t worry, that’s why we’re here.

If you are keen to explore some digital marketing further, but require a little guidance, then please feel free to contact us today.

One of our friendly representatives will gladly sit down with you, and identify the best approach when it comes to taking your business to the next level and securing your spot as a leading contender above your competitors.

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Marketing

7 Diverse Marketing Strategies That Will Make You An ROI

Have you ever heard the phrase: “the bigger the net, the more fish you’ll catch?” Well, when it comes to marketing, it speaks volumes.

If you’re a business owner with the desire to succeed today, then this is something that you will have to embrace.

You can’t simply pick one avenue of marketing and sink all of your budget into it.

The most successful businesses carefully optimise their strategies so that they can cover a number of bases, designed to make them a significant ROI.

From a digital marketer’s perspective, one of the most frustrating objections when reaching out to other businesses is this:

“We can’t afford SEO because our marketing budget goes on our Newspaper & Magazine ads.”

Now, that might sound crazy to you, but you’d be surprised by how many people still to this day, neglect to embrace digital marketing as part of their strategy.

That’s not to say that Newspaper & Magazine ads are not worthwhile on a smaller scale when targeting a local audience.

However, if you want customers to come to you, a digital marketing campaign should be your priority.

That being said, it is important to note that SEO isn’t the “be all and end all” when it comes to marketing.

If you truly want to have the greatest success, then you’ll need to diversify your marketing strategy.

In this post, we’re going to look at various strategies which can and will, make you an ROI.

1.      Search Engine Optimisation

As mentioned above, SEO is arguably one of the most effective marketing strategies at your disposal.

Organic traffic today accounts for more than 50% of all website traffic—that’s more than paid advertising and social media marketing combined.

Just imagine the possibilities when implementing all three into your digital marketing campaign?

In addition to that, with an effective and well-mapped SEO strategy in place, organic traffic can account for more than 40% of your company’s annual revenue.

In other words, if your annual revenue equates to $800,000, $320,000 of that could be from the organic traffic gained through your SEO.

Now, those statistics will vary depending on the industry that you work in; how well your website has been optimised in terms of usability & functionality; and the products & services that you sell.

However, for the most part, that should give you a pretty clear idea as to just how hefty an ROI can be achieved when investing in SEO.

That said, SEO is never an instant success.

It takes patience, hard work and a whole lot of strategy to get you to where you need to be.  As the saying goes: ‘you have to speculate to accumulate.’

2.      Google Search Ads / “Pay Per Click” Advertising

For anyone working on their search engine optimisation, dominating the organic rankings in Google will be a priority.

But of course, it can take a while before you reach the top 3 “golden” positions for your favourite search phrases.

So, what can you do in the meantime to see a return on your investment?

Google Search Ads (or PPC) is a worthwhile investment.

For certain popular phrases that you’re not ranking so well for now, you can pay to have your website featured in the top of a Google SERP’s (search engine results pages).

And even if you are ranking well organically, you will be instilling further confidence in the end user as they will have seen your listing twice already—three times if you happen to feature in the maps listing as well and a possible 4 times if you are selling your products in Google Shopping.

Combining Search ads with an organic SEO campaign is a great way to diversify your digital marketing strategy.

There are of course, pros & cons to doing this.

While the average click-through rate for an ad in the first position is 7.94%, PPC visitors are 50% more likely to purchase something than organic visitors.

In addition to that, most businesses who use PPC say that for every $1 they spend, they make $2 in sales.

This means that on average, if you spend $1000 on PPC, you’ll see a $2000 return.

Of course, that is highly dependent on the industry that you’re in and the products and services that you sell.

However, when done correctly, the profit that you make through a well-optimised Ads campaign can cover your monthly investment on SEO while you’re waiting for the organic results to come through.

If you’d like to sit down with one of our experts so that we can figure out a tailored Ads campaign which is designed to drive targeted traffic through to your site, simply get in touch. 

3.      Social Media Advertising

Social media marketing is incredibly valuable, particularly when it comes to connecting with your target audience and interacting with them on a personal level.

But there’s a whole other aspect of social media which can drastically bolster your sales: social media advertising.

Through Facebook, Instagram or LinkedIn, you can invest in paid advertising which will target users who are actively interested in the products & services that you offer.

Of course, the industry that you’re in will depend on where you’ll have the most success.

For example: recruitment agencies, resume writers & other “business” related businesses will experience greater success through LinkedIn advertising.

Then for the more “visual” companies like photographers, wedding planners and catering experts, Instagram will likely bear more fruit.

The beautiful thing about paid social media advertising is that you can spend as little or as much as you like.

For smaller businesses who don’t have a huge amount of marketing budget, they can start off with small monthly payments and still see a return on their investment.

Of course, there is a right and a wrong way to go about it. As such, it’s important to team up with the professionals in order to build the most effective ads which are designed to lure people in and convert them from “clicks to customers”.

4.      Email Marketing

Email marketing is one of the most underrated marketing strategies today. But before we get into it, have a look at the following figures:

  • There are 3.7 billion email users today
  • Those numbers are projected to be 4.1 billion by 2021
  • 350 million dollars will be spent on email marketing during 2019 in the US, alone
  • Well optimised email marketing campaigns average a 28.5% ROI
  • 59% of marketers say that email marketing is their biggest source of ROI
  • On average, for every $1 spend, $44 is made in return

How does it work?

Well, it’s simple really! Using the current contacts that you have, you compile an “email list”.

These are the people that you will be targeting with regular content. Such content includes:

Newsletters: Keeping your customers up to date with what’s going on with your brand and business.

Marketing Offers: Providing your customers with your latest stock or services and offering discounts, promotional codes and ultimately encouraging them to spend!

Announcements: Let your customers know about any new products or services that you have coming out soon!

Event Invitation: Let people know about what’s going on! Do you have any upcoming events? The more people you notify, the more attendees there’s likely to be.

The fact is, it’s incredibly easy to unsubscribe from a mailing list, so it’s not harassment (many business owners worry it is).

You can only contact those who have already signed up and given you the permission to do so.

What it actually does, is reinforces your brand in the back of their mind.

If every time they check their emails, they see special offers, promotions and updates from your business, eventually they’re going to bite.

Why? Because you’ll be the first company that springs to mind when they’re in need of the products or services that your company provides.

Why don’t you give it a trial?

5.      Referral Systems

Having a customer referral system in place is a drastically under-utilised marketing strategy.

For one thing, it’s incredibly easy to implement, it costs you very little and it can drum up extra business without even having to lift a finger.

The process is simple:-

You offer existing customers an incentive to refer your business to friends & family who might be interested in similar products or services.

This could be a monetary incentive, or you could offer extra goods, discounts and much more.

Get creative with the process and give your satisfied customers all the more reason to want to recommend you!

6.      Remarketing / Retargeting

Retargeting is becoming increasingly popular in the marketing world as it works wonderfully.

Rather than placing adverts in front of people who have had no dealings with / expressed any interest in your business, you can “retarget” people who have interacted with your website in the past.

For example:

A Facebook For Business or Google Display network retargeting ad will put a branded advert in front of users who have recently visited your website.

They’re already familiar with your brand and they may have been very close to heading to the checkout!

Think of retargeting as the “Oh, bugger it why not?” of marketing, giving potential customers the little “nudge” that they need to convert into business.

7.      Employee Marketing

Don’t underestimate the power of your workforce.

Employee marketing doesn’t work with every industry, but for certain retail & service-based companies it works wonders.

It’s simple really.

You offer discounts and benefit packages to your employees so that they can take advantage of the products or services that you offer.

This gives you a unique opportunity to invest in what’s essentially free exposure.

Satisfied employees who believe in your products or services and use them personally, will be much more likely to recommend them to friends, family and brag about it on social media.

“The bigger the net,” and all of that!

 

Conclusion

These are just a few ideas to inspire a little creativity.

The idea is that you shouldn’t put all of your eggs into one basket.

Yes, you should certainly be heavily focusing on your SEO, but there are so many other marketing avenues that go hand-in-hand with it!

You want to aim to create as much synergy as you can, weaving a web of pathways that all lead back to your checkout!

If you’re feeling a little overwhelmed by it all and would like to have a chat with one of our friendly advisors, then please don’t hesitate to contact us today.

We offer a wide variety of marketing services and would love to come up with a successful strategy for you!

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