With more than 32 million small businesses hard at work right now, you have to do everything possible to set yourself apart through solid marketing. Putting the word out about your brand will help you generate new business and convert sales. 

So, how much do companies spend on marketing on average? We’re happy to examine it further to help you with your decisions. 

Keep reading to learn how much you should spend on marketing. 

How Much Should You Spend on Marketing?

Every company has different needs, which means different marketing budgets. A good rule of thumb is to pay 7% to 9% of your budget on marketing and advertising. 

The location also plays a factor. You might pay a certain amount in Traverse City, Michigan, that is different than what you’ll pay in Lansing. 

A marketing consultant will help you figure out the details. There are several factors that you’ll need to consider when you’re piecing together your marketing budget.

What Kind of Marketing Do You Need?

So, how much do businesses spend on advertising?

The first factor you’ll need to consider is which type of marketing will be the most effective for your business. You might want to consider marketing budgets by industry, but it’s important to understand how each type works. 

Here are some of the marketing campaigns you’ll need to consider:

Content Development

Content development is one of the most effective pieces of marketing that you can put to use. It builds a genuine connection to your brand and both informs and educates people at the same time. 

Put long-term content creation, blogging, guest posting, and original multimedia pieces to use. Intelligent graphic design content creation can accomplish the following:

• You’ll generate more traffic to your brand
• It’ll keep you at the top of your clients’ minds
• Content development helps you retain your audience
• It’s great for mobile 
• Content creation is an excellent way to build a stream of income

Using quality multimedia will also give you better leads and traffic from your content. Look for a graphic design company in Michigan that understands how to build your brand.  

Social Media Marketing

Get to know effective social media marketing so that you can figure out how much you’d like to invest. Learn how to get a positive return on investment (ROI) and conversions from Facebook, LinkedIn, Twitter, Instagram, and other social media outlets. 

Social media marketing is valuable because you can study algorithms and get results in real-time.

Paid Advertising 

Paid advertising is important when you’re factoring in marketing budgets by industry. Pay-Per-Click (PPC) advertising is incredibly popular because it gets results. 

These advertisements cut the line and let you bring in more traffic than you ever could organically. Figure out which outlets are best for your industry so that you can get the visibility that you’re looking for. 

For many businesses, the right course of action can be traditional print advertising (TCBN, Northern Express, etc) while others will excel in digital spaces. Your advertising plan should be about reaching your customers where they are.

What Should You Consider With Your Marketing Budget?

Now that you understand some of the factors that go into marketing campaigns, it’s time to take action so that you get results. Keep these points in mind as you put together your marketing budget:

• Set measurable goals, like the number of leads, conversion rates, click-through-rates (CTR), and referral traffic
• Find the best marketing firm that can execute your plans
• Get at least three different quotes on marketing service
• Appoint leads to tackle each marketing effort
• Revisit your objectives and tweak as needed

Studying your marketing from this point of view will help you when you’re putting together your marketing budget.  

Figure Out How Much to Spend on Marketing

These tips will help you study how much you need to spend on marketing. Learn how much you should spend on marketing upfront so that you can put your plans in motion. 

Take the time to find the best marketing consulting firms in Michigan.

Let Nicole Steffen Design help you get your best marketing efforts off the ground. Let’s chat! Use our contact form to get in touch, or give us a call at (231) 878-1898.