Tag: Advertising

Great advertising and marketing are crucial to the success of a business. In recent years, digital advertising has seen significant growth, making it more important than ever for companies to have a strong online strategy in place. So how much should your company spend on advertising and where should that money be invested?

What should be your budget?

The average marketing and advertising budget for a business is 10% of its gross revenue. However, advertising spend isn’t a one-size-fits-all equation. Determining the best advertising budget for your business depends on your industry, company size, company history, existing digital presence, and goals.

1. New Businesses

For first-year businesses, it takes more marketing capital to get off the ground. New businesses need to invest heavily in brand awareness to gain customer trust and a market voice. 

Percentage: 12-20%

Variables: Some industries are more competitive than others. It is crucial to conduct in-depth market research to understand your audience and competition. The level of competition will help you determine how much to spend in ad dollars.

2. Established Businesses

Percentage: 6-12%

Variables: Competition and profit margin are two important factors for determining your advertising budget. The higher your profit margin, the more you can afford to spend on marketing and advertising. 

If you are a smaller company doing less than $5 million in sales, the U.S. Small Business Administration recommends spending around 7-8% of your gross revenue on marketing. 

Where should you invest your ad dollars?

To properly allocate your ad dollars and maximize your ROI, businesses must pay close attention to industry trends, competitors, and consumer behavior.

In 2019, over $100 billion was spent on search marketing, display advertising, social media, and email marketing. For the first time ever, digital marketing spend surpassed traditional advertising spend (TV, print, radio, etc.). While traditional advertising is still a relevant means of marketing, digital advertising is projected to continue to dominate in the coming years.

How should you spend in a recession?

As the COVID-19 pandemic continues to cause economic uncertainty in the United States, businesses need to remain calm and reframe from slashing their advertising budget.

During a recession, there is less competition and noise. While other businesses are quiet, your customers are more likely to hear your brand voice above the rest. In addition to this, less competition means cheaper ad costs. When the economy improves, your business can emerge as a market leader having acquired a substantial customer base at a lower cost.

“A man who stops advertising to save money is like a man who stops a clock to save time” -Henry Ford

Reach out to us today!

The holiday season from November to the end of December is the most lucrative time of year for retailers. Is your business ready for the shopping frenzy? With the holidays quickly approaching, now is the time to formulate your marketing strategies to attract customers and generate those sales! Check out these marketing tips below to see how your business can maximize its sales during the holiday season.

Make Your Cyber 5 Strategy Part of a Bigger Game Plan

Those extremely important shopping days from Thanksgiving to Cyber Monday are referred to as the “Cyber 5”. A common misconception is to get your ad campaigns up and running just in time for Black Friday. While it is crucial to recognize the Cyber 5 as huge shopping days, implementing a more comprehensive advertising approach will result in a more consistent and effective campaign. In 2018, marketers devoted 19% of their search budgets to Cyber 5 spending, but those days make up for just 9% of holiday shopping. This year, more businesses are looking to adopt a strategy that encompasses the Cyber 5 as well as the whole extended holiday season. This results in catching the attention of both the October early-bird shoppers and the last minute shoppers.

Optimize for Mobile Use

A growing number of consumers are visiting websites from mobile devices.
Your business must be optimized for mobile use if you want customers to find your store and stay to shop. A responsive web design is crucial for grabbing the attention of consumers and will result in greater engagement and higher sales numbers. The National Retail Federation projects 105 billion in online sales this holiday season with an estimated 127 million shoppers predicted to shop on Cyber Monday. Of these Cyber Monday shoppers, 25 million said they would specifically use their mobile devices for purchases.

Take Advantage of In-Channel Buying

Consumers are more connected than ever before. A recent study found that 64% of customers are using multiple channels to complete a single transaction. This translates to many touchpoint across numerous different platforms. In 2018, holiday traffic to digital sites from social media channels grew by 22% year over year. This year, even more shoppers are expected to be buying in-channel. This means that retailers should be ready to push their brand where the consumers already are, such as social media platforms.

Royal Highnies’ Holiday Success

Royal Highnies is a growing luxury loungewear and undergarment retailer. From boxer shorts to lounge pants, to tee shirts and more, Royal Highnies provides ultimate comfort for the whole family.

During the 2017 holiday season, Royal Highnies wanted to boost its online advertising in order to attract more consumers to the brand. This is where Spectruss came in. Our team worked with Royal Highnies to implement digital marketing strategies that would result in a huge ROI.

First, we conducted detailed market research to identify a specific target market for Royal Hignies. Based off this audience, we did rigorous keyword research to ensure their brand would be seen by the right consumers.

Once we defined a specific customer base, we developed a digital marketing plan that included creative email campaigns, shopping ad campaigns, display ads, social media ad campaigns and fresh graphics.

This campaign utilized new approaches and creative materials designed specifically to reach Royal Highnies’ target market. The end result? Royal Highnies saw a 25% increase in online sales and a 10% increase in wholesale sales.