How Much Should Your Business Spend on Advertising per Month?

As a business owner, you understand that offering a quality product or service is just one ingredient in the recipe for success. People need to know who you are, what you can do for them, and what sets you apart from your competitors. It doesn’t matter what you’re selling if no one knows of your existence. This is where advertising comes in. Marketing and campaigning are important in building your brand and maintaining loyalty. Hence, they should receive a dedicated category in your budget.

The question is, how much is enough to cover your monthly expenses? Many small businesses and startups struggle with this question, not least of all because of budget constraints. Unfortunately, there is no perfect one-size-fits-all answer that will satisfy everyone. But follow a few key tips, and you’ll be on your way to success in no time.

First, understand up front that a percentage of your revenue will be funneled back into marketing and advertising. Just remember that it’s not a loss but a long-term investment in your growth. Building a stable foundation is one of the best things you can do, and it will dictate the future of your company. Are you a small business that’s only just begun? Or are you well-established in the industry? Identifying your current market position will allow you to create a budget that is tailored to your needs.

Marketing is a blanket term that refers to all kinds of techniques and strategies, including advertising, search engine optimization, content creation and distribution, and much more. These must all be included and accounted for in your planning. That being said, it’s safe to assume that your marketing budget should fall somewhere between 7–10% of your revenue.

If you’re trying to get a new business off the ground, then you may need to set aside a little more, at least to start. Building awareness takes time and money, but you can pair down on the spending once you’ve established a solid foundation. Take note of the habits of other successful businesses in your industry, and monitor the results of your own advertising campaigns for invaluable insights and data. The U.S. Small Business Administration is a great resource for anyone looking to make the most of their budget. Here at Sumner Group, we help clients maximize their impact on the advertising landscape. By investing in our services, you’re investing in the quality and expertise that comes with decades of experience. So put your money to work for you, and get in touch with us to learn how we can help your business succeed!