How To Spend On Marketing The Right Way?

How much money do you spend on advertising? Do you plan a marketing budget? Or do you wing it? Let’s find out why having a marketing budget is a great idea!

As you know, marketing is one of the most important aspects of any business. Without promotion, it will be impossible to make your company known and attract valuable visitors to your business.

As a rule, most business entrepreneurs use free marketing tools and services. It makes sense when someone is just starting or has a limited budget.

In other cases, it’s better to alloсate some money to paid marketing tools. Entrepreneurs often choose them because these solutions can significantly impact your business and contribute to its development.

The most important question here is: “How much money should I spend on marketing?”

Industry insiders often suggest around 5% of total revenue for maintaining position and up to 12% for robust growth. In fiercely competitive landscapes, consider cranking that budget dial to 20%.

Then, select your marketing platforms. Think of Facebook, Instagram, and Google Shopping as the popular hangouts. But don't discount the lesser-known gems – they might surprise you!

For all newcomers in the e-commerce business, we recommend starting with Facebook ads and spending most of the money on them. This platform is easy to use, so you probably won’t have problems creating ads there.

Remember, the lower the budget is, the worse your ads are showing. This is how Facebook works. However, it would help to control yourself to avoid spending lots of money. When advertising on Facebook for the first time, you can’t be 100% sure your campaign will bring outstanding results. Start with $10 a day and see how things go.

Aside from that, another main thing is to keep an ear to the ground. Otherwise, you’ll have a great chance to spend money on unnecessary or outdated things. Monitor such websites as Reddit and analyse what people are discussing about. If you understand that something is going viral – a meme, for example – use it in your marketing campaign to get more likes and shares.

Moreover, keep in mind that your expenses will vary from month to month. If you are over your budget this month, for example, make sure it’s worth it.

The last step is measuring your marketing campaign and optimising it based on your results. When analysing your results, focus on the primary goal of your campaign and evaluate if it has been achieved. If it hasn’t, don’t give this campaign a second chance! Without any changes, it will be a waste of time.