It seems like every day, organizations are solicited for new ways to spend marketing dollars. From local sports team sponsorships to online advertising and everything in between, there are myriad ways to throw around all that marketing cash.
It’s easy to just keep spending money on marketing, but how do you know what’s working and what isn’t? How much should you allocate toward your marketing budget? There’s a few things to get straight before you calculate your budget.
Organizations often blur the lines between their marketing budget and their community support. We need to expect different things from community sponsorship than we do from our marketing budget. Community sponsorship aligns your brand with the things that matter to you, and you want to be able to say “yes” to those without worrying about how that logo on the football stadium scoreboard is affecting your bottom line.
When you budget for marketing expenses, we recommend separating out your community sponsorship efforts into a different budget line.
Mass marketing has a purpose and a place. Its intention is to reach everyone all at once. Billboard advertising, television ads, and other forms of mass market media are exciting because they reach a lot of people, but the truth is, most of those people just aren’t your customers.
If you’re investing in mass marketing, you are spending a lot of money for a little bit of a lot of people’s attention, people who will quite simply never buy from you. What you want to be doing is spending a smaller amount of money on a targeted group of ideal customers where you can make the biggest impact. Because of all of the different channels on which your customers are viewing content, advertising is far more segmented than it has ever been. You need to be more focused and consistent on where you are sharing your message.
Define your target audience. From there, you can be laser focused in your marketing efforts.
Once you’ve defined who your ideal customer is, you’ll want to take time to ask yourself these six questions:
If you invest in one area but overlook another area, it can break your entire customer journey. When you assess your marketing strategy, and answer these questions, it can help you identify where you are already investing and where there might be gaps in your marketing.
Start by defining what your objectives are, who you want to reach, and what you want your customers to do. Then, take an inventory of how you are currently spending your resources—both in time and in money—and what the purpose is behind those activities. Next, analyze all you’ve just written down: are there things you can just eliminate? After that, identify where the biggest gaps exist in your current approach. Finally, make a plan for what happens next—and how are you going to get it done.
Strategy is super important for achieving your marketing goals for growth in your business, but often these investments feel like spur-of-the-moment decisions. With a clear marketing strategy, you can feel more focused and confident about how you are investing your time and money.
How much time and money should you invest? The Small Business Administration recommends that “businesses with revenues less than $5 million should allocate 7-8 percent of their revenues to marketing.” On average, organizations allocated 11.3% of their overall budget to marketing in 2020, according to a February 2020 CMO Survey. These figures can give you an idea of how much budget overall to dedicate to your organization’s marketing efforts.
When you bring a strong marketing strategy together with a defined marketing budget, you will find clarity and the ability to set clear expectations for your organization’s marketing efforts.
Spire specializes in both developing marketing strategies and implementing digital marketing strategies for local businesses that want to grow. If you’re interested in partnering with Spire to gain clarity and direction for your business’ marketing goals, sign up for an assessment or connect with a member of our sales team. We look forward to seeing how we can work together!
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