How Much Should I Spend on Marketing? A Basic Guide

how much should i spend on marketing Mar 11, 2023

You might be wondering, how much should I spend on marketing?

That's an important question as your business expands because you don't want to overspend. This could deflate your profit and cause more risk in your business.

You also don't want to underspend because you might not get enough results. This is why it's important to know exactly how much to spend.

It's recommended that you spend between 10% and 20% of your profit. But this may not help you when it comes to different kinds of marketing strategies.

Here's a specific guide on how much to spend on marketing.

The Basics

While you may have an idea of what kind of marketing strategy you want to use, it may not help if you don't know much to spend.

It's important to consider your paid advertising options. This helps you decide how much of your 10% to 20% of your gross revenue you want to spend on marketing.

You can spend it on Facebook ads, PPC, other forms of social media ads, or email marketing.

In order to get the most out of your budget and the best results, you should also know who you're targeting. You want to know how much your competitors are spending per click or per conversion.

When you have an idea of how much you are paying per conversion, you will know how your ads are performing. You will know if you need to adjust how much you are paying on a certain marketing campaign.

Spend More If It's Doing Well

Another important tip when it comes to figuring out your budget costs is to spend more if your ads are doing well.

If your ads are doing well, this typically means you are producing more in revenue. That means the more revenue the more on marketing you should be spending.

You May Need to Change It up

However, if you are discovering that 10% to 20% on marketing you are spending is not effective, you should try changing it up.

You don't want to assume that more money spent on marketing means better results. Sometimes it requires different strategies involving your target market or the offer you are sending out to them.

This is why you should consider different marketing strategies. You want to get the most bang for your buck when you spend on marketing.

How Much Should I Spend on Marketing? Now You Know

If you're still wondering, how much should I spend on marketing? Now you know the answer. You should be spending roughly 10% to 20% of your budget.

When you spend this much, you'll have an idea of how you're ads are performing. But it's important that you don't spend 10% to 20% in multiple marketing campaigns. You should have a few campaigns that you want to test and see what performs the best.

If you want help with your marketing strategy, you can contact us here.


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