/ Digital Marketing

How Much Should I Spend on Advertising?

Our Advertising Budget calculator can help you answer this age-old question so you can come up with a sensible plan of attack

Too often, one of the first questions out of an advertiser’s mouth is: have you come up with a budget? Many “experts” will tell you to spend 5% or 6% of total sales on marketing; but, that’s an absurd and useless generalization because it doesn’t take into account:

  • the visibility of your place of business and signage, or
  • your mark-up and cost of sales.

If you have a highly visible location that gets noticed and, because of location and visibility alone, that’s marketing! So a prime, highly visible location might be more expensive, but might also be worth the added cost and should be factored into your advertising budget.

Similarly, not all sales are the same. An attorney’s billable hour is a completely different “sale” than ten pairs of jeans at a retailer. Why? Because the attorney’s hours have little to no cost of sales and the revenue from the “sale” can all go to pay operating expenses of the business whereas the retailer must deduct his/her cost of purchasing the jeans before using any of the “net” sale to pay operating expenses. So your net sales are the important number regardless of your “total” sales.

We’re here to help.

Although there is no “one size fits all” budget formula, this simple calculator below can help you figure out roughly how much you can afford to spend on advertising.

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Can You Afford to Advertise? (Better Yet – Can You Afford Not To?)

Regardless of your budget, you can’t afford not to if you want to grow your business. We’re a great example of advertising on a small budget – nearly 100% of our clients come to us through our website or via referrals.

We’d like to do the same for you and add you to our long list of success stories. So call us now at (312) 313 9311 or send us an email below to strike up a friendly conversation.