Industry – Each industry has different advertising needs and allocations. This field is not calculated as a part of the advertising budget recommendation, but should be considered when choosing a marketing budget percentage.
Yearly Gross Revenue – This is simply your business gross revenue for the year. Marketing budgets are calculated easiest by taking a percentage of your yearly gross revenue.
Marketing Budget – This field correlates with the chart above, typical marketing budgets can range from 0% to 20%+ The average small business marketing budgets lay somewhere in the middle at 6%-8% of gross revenue.
Digital vs. Traditional Allocation – Many small business allocate marketing budgets to both traditional channels as well as digital channels.
Overall Marketing Budget Recommendation – This is the overall monthly marketing budget recommendation based on your yearly revenue and marketing budget strategy.
Digital Advertising Recommendation – This is the monthly budget recommended for digital advertising which includes, Google Ads, Bing Ads, re-targeting, display advertising, social media advertising (Facebook, Instagram, LinkedIn), video marketing and all other forms of pay-per-click or pay-per-impression-style digital advertising.
SEO Recommendation – This is the monthly budget recommendation for search engine optimization (SEO). Organic traffic driven by good search engine optimization is one of the largest drivers of leads and revenue to many business websites. Unlike most forms of advertising, SEO is sticky. SEO has the longest timeline for success, but remains one of the most powerful ways to get traffic, leads, and sales.
Branding / Social Media Marketing Recommendation – Branding & social media marketing for many businesses isn’t usually a direct channel for traffic leads and sales, but rather an important support channel in the customer journey that helps grow the brand, awareness and loyalty.
Traditional Marketing Recommendation – This is the monthly budget recommended for traditional advertising which includes, TV, radio, magazine, billboards, flyers, guerrilla tactics and all other forms of traditional advertising.