09 Mar Advertising Budget Setting: Think Smart Before You Spend!
Many advertisers first question is “how much should I spend on an advertising campaign”? Many times advertising budgets fall within the 3%-5% range of total sales. There is no simple answer and it is important to consider the following:
- Your product: What are you advertising? Is your audience aware of your product or do you need to introduce/educate consumers on what you are offering? Does your product require a lot of research prior to purchase or is it a high-ticket item? The more research required and higher the ticket items generally required a larger amount of advertising dollars in order to educate consumers.
- Your promotion: Is your promotion a long-term sale or weekend focused? Or do you want to focus on a long-term branding program to keep your product top-of-mind with consumers? Short term sales
- Your season: are you wanting to target a specific time of the year or holiday? Holiday seasons tend to be noisy with multiple retailer promotions, driving up advertising costs.
- Your Market(s): Market size drives the cost of media as well as what is available. Larger markets have multiple radio stations, outdoor options and newspapers while smaller markets are limited to a handful of options, allowing you to run a mix of items.
- Your Service Area: Do you want to reach the full DMA or is your service area confined to a few-mile radius? Your service area may limit available media choices or require multiple options for you to reach your full market.
- Available creative: Do you have creative ready to go? The available elements will narrow down the media vehicles you have to choose from. If creative has to be developed this is an added expense you need to consider.
- Digital component: Do you have a strong digital campaign? Are you participating in a paid search and/or social program to engage consumers and expand your reach?
Give Media Venue a call or send us an email. We will sit down with you to discuss the above items, developing a cost-effective plan that fit within your business goals and objectives. We aren’t shy when it comes to sharing our thoughts on advertising planning (or really anything).