How much money to invest in marketing to make it work?
Posted On August 7, 2021
Once you have defined the marketing measures in the marketing mix, you can now summarize them in your marketing budget. When thinking about your marketing budget, make sure you consider the total cost of your advertising costs.
Also, make sure that your marketing expenses are in the best proportion to be met. According to luminablog, it is essential to examine your marketing budget by comparing your total marketing expenses with your industry benchmarks.
In this article, we will tell you how much money to invest in marketing to make it work and how to calculate the return on investment.
Not a waste, but an investment
So why can’t you spend a single time in advertising, gaining new customers, and closing the subject of digital marketing until next time?
If you think like that, you think advertising is a purchase: it’s like the internet is a store where customers are sold. I came, gave the money at home, and received several potential customers. We recommend that you read reviews about american loans companies that will help you make decisions in the future.
But advertising is more of a bet or an investment: you invest a certain amount of money without knowing exactly how many potential customers and even more customers you will receive from this investment. The higher your professionalism in this matter, the more likely the investment is to pay off and you will make a profit.
How much money do I have to invest?
Often, people who are far from marketing think that it is about creativity and a kind of abstraction that cannot be touched and counted. Marketing, like any other business, loves plans and numbers. If you calculate an advertising budget that you will not exceed, then you will go down with a little blood, even if the first experience in digital advertising fails.
How long does the investment in advertising take?
Perhaps the most common question that entrepreneurs like to ask. It is important to understand that the results will not be immediate. Very often, an entrepreneur wants a person to repair a few years of inactivity in 1 month of work. Unfortunately, this is not possible.
Targeted advertising should be seen as an investment in the future
Building the level of knowledge and raising awareness of your business among the target audience, recruiting subscribers, and collaborating with them. All this should work together and for a long time.
Another favorite question is “How long does it take to invest in advertising?”
The answer is simple – always.
Efficiency as an important criterion for marketing measures
Finally, the following applies to marketing measures: an attractive price/performance ratio is crucial. To calculate the advertising effectiveness of individual marketing measures, but the price you pay for an environment (fair, poster, online advertising, etc.) concerning the coverage (how many people in your target group you can reach with that environment).
With a marketing budget in which you have checked the effectiveness of individual measures, not only can you avoid unnecessary costs, but you can also convince potential investors!