How Much To Spend On Online Marketing?

alphiblr · Jul 9, 2017

How much should I spend on my websites or online marketing? I am confusing about these problems too.

How much budget should go into marketing? Which factors can answer this questions, I can give some examples as follows:
You annual revenue
Your Industry
What your competitors are doing?
What are you trying to accomplish?
What stage is your business in?

What I have seen most often is a company should spend 2-10% of their annual revenue into marketing. This percentage is backed by several credible sources. Basically, smaller your business larger percentage you need to invest to make a splash into the market.

vinaya · Jul 9, 2017

How much you can invest depends on number of factors, for instance:
what you are going to sell: If you are selling expensive products and services, it is a good idea to spend good money on advertising. On the other hand of your product or service is really cheap, there is no point in spending too much in advertising
What is your expectation: If you are expecting high returns, marketing campaigns on high budget may be a good idea, however, if your expectations are not very high, spendint too much on marketing may be just a waste of time.

David Beroff · Jul 10, 2017

alphiblr said:
The frequently asked question from online business entrances How much should I spend on my websites or Online Marketing?

50/50 !
You should split your time on both your websites or Online Marketing and see which will work for your site then you should use more time for it, redo more times to find out how much is the best to spend on your website or online marketing

This is a type of A/B split test!

alphiblr said:
How much budget should go into marketing?

Much as possible, why you need to stop marketing while its helping your site to increase traffic and sales.
If you are seeing it helping your site then you should increase the budget to get the maximum revenue.

alphiblr said:
What I have seen most often is a company should spend 2-10% of their annual revenue into marketing. This percentage is backed by several credible sources. Basically, smaller your business larger percentage you need to invest to make a splash into the market.

I read till here and I have to stop answering your question because this was quite wrong, if a company got more benefits from marketing then why they must spend 2-10% of their annual revenue into marketing without adding more for it? If they spent 2-10% but increased 20 to 100% revenue then why they don't spend 50 to 70% to get 500 to 500% revenue?

Hope this answered your question!

David.

David Beroff · Jul 12, 2017

Floxera-Jose said:
Because in some cases the company doesn't can't and doesn't want to grow fast, or actually expand.

I would like to know more these cases.
Never think a company doesn't want to grow fast or expand their business for any reasons.

Floxera-Jose said:
I make this question: Why Starbucks doesn't open a coffee shop in every small village and town that exists?
Probably they could make more money, have more profits. But why they don't do this?
Because it is very difficult to keep quality, and ensure a compromise between service and quality when you have zillions of customers.
That's why some companies prefer to stay small, or as many bloggers use to say in this days "boutique companies" ;-)

I don't think so, a company can grow their business and still keep their quality of their products/services.
This is not a factor that affect to the growth of a company though.

jyy · Jul 13, 2017

alphiblr said:
What I have seen most often is a company should spend 2-10% of their annual revenue into marketing. This percentage is backed by several credible sources. Basically, smaller your business larger percentage you need to invest to make a splash into the market.

I would put more into it than that. In fact, I'd say 50 percent would be a good idea. Note that for sure, we don't want to see the business sink. So we want to feed it is much as possible. Anyway, though, I can see why they might use it for operating costs. Well, for one thing, they have to pay the employees - and possibly good employees might call for even higher pay than usual.

Oh, by the way, does anyone think it's the norm for a company to want 80 percent profit - with no investment into marketing or operational costs?

How Much To Spend On Online Marketing?

alphiblr

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vinaya

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David Beroff

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Floxera-Jose

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