In this article, we will provide a general overview of how shed builders and dealers might begin advertising online.
We looked at the many sorts of online advertisements and the benefits of each ad type in previous sections of this blog series. We also spoke about the many sorts of ad platforms and which ones you should look into.
In this installment of our series, we’ll look at the most often asked question: “How much should I spend on advertising?”
How Much Should You Spend
Setting a marketing budget may be difficult for many firms. They just don’t know what an acceptable quantity is. A proportion of income is an excellent place to start. If you can commit to investing a particular amount of your profits back into marketing, you’ll have a starting point.
In terms of specifics, here’s what we’ve discovered:
- If you can spend 6–9% of your income on marketing, you should be able to maintain your existing position.
- If you can invest 10-14 percent of your income on marketing, you will be able to strengthen your present market position.
- That certainly fluctuates in currency terms, but we’ve seen that a minimum of roughly $3000 each month will provide long-term gain if invested intelligently. Another issue to consider is that the amount of money required to get outcomes varies greatly by industry.
For example, if you’re targeting highly competitive terms, you may need to pay more if numerous rivals are using those phrases. A tiny local legal company, on the other hand, may achieve decent results investing $1000 per month targeting local keyword searches.
Factors to Consider When Planning Your Digital Advertising Budget
1. Goals and Objectives
The company’s goal is possibly the most significant factor of all. A digital marketing budget cannot be planned without first establishing goals.
Most businesses want to increase their lead generation or revenue growth. If you want to generate more leads, you should spend the majority of your digital marketing money on acquisition.
If increasing sales revenue is the aim, the money must be divided between acquisition and retention.
2. Target Audience
The more specific the audience you can identify, the more effectively you can tailor your advertising strategy.
For example, a business that sells office jackets will not have much luck advertising in a women’s magazine.
3. Types of Product
New, unique products tend to be more expensive to advertise. The company faces a higher risk of being criticized for attempting to sell a novel product.
A well-known product or service, on the other hand, can be advertised profitably at any stage in its life cycle.
4. Product Life Cycle Stage
Different stages of the product life cycle represent different risk levels for any business. Risky products require more investment than the standard ones.
5. Expected Profit
It is very important to allocate your digital marketing budget according to your profit expectations.
The objective of digital marketing is to drive as many sales as possible. However, some keywords are less likely to convert. Paying more for keywords that result in fewer sales will be a waste of money.
There is no straight answer to this question. Just as with most other aspects of marketing, what is a good amount to invest in digital marketing varies from business to business.
Shed Marketer is a passionate team of marketing nerds that absolutely love the Shed Industry. Our proven digital marketing and lead generation system is created exclusively for shed and barn builders, and portable building manufacturers. Sell more sheds with Shed Marketer now! Call us at (888) 987-0865 to schedule a call with us.