How much should you allocate to marketing spend?
As 2017 starts to ramp up, many business owners are starting to look ahead and think about how they are going to grow in 2017.
Of course, it’s difficult to think about a growth strategy without also thinking about marketing. But without having the marketing know-how and experience, it’s difficult to know how much budget to allocate to marketing spend. Many clients we meet with have not yet defined their marketing budget, so we work with them to identify their growth goals and develop a marketing method that works for their business, their customers and their budget.
The General Rule of Thumb
As a general rule, many government bodies recommend that small businesses spend about 8 per cent of their gross revenue on marketing and advertising if they’re doing less than $5 million a year in sales.
According to a Gartner Research study, “companies spent on average 10.2% of their annual 2014 revenue on overall marketing, with 50% of companies planning to increase in 2015 to an average of 10.4%.”
Read the full article on the Method+Blog.