Stunned by rising advertising cost, or elated by low advertising options on digital media? Either way, these are two sides of a coin. Because many businesses get stunned by the seemingly low advertising costs too. Reason, low performing ads generating low to no results leading to wastage of time and money. But there is more to it. If a business is not flexible in exploring new advertising channels and creative business marketing opportunities, new options that are better suited to reach their target audiences, isn’t that a business opportunity loss too?
Quoting John Wanamaker who famously said, “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”
Interestingly, in-spite of the advanced advertising tools available today that allow micro-niche targeting to pre-qualifies audience segments, many advertisers still lament about the above-mentioned challenges.
How Much To Spend On Ads?
Using innovative, optimized online advertising campaigns, your business can reach millions of pre-qualified, and highly “interested” audiences. You can reach real buyers actively looking for your products and services. Fortunately, the availability of high end, AI powered, digital advertising tools ensure there’s no waiting game to see results. The only thing you require is the right marketing strategy and advertising tactic. Else each dollar spent can go for a toss.
Aidasinc makes it easier for all small medium businesses get expert assistance, without expensive contracts, to optimize online advertising campaigns and save thousands on low performance ads.
Having said that, the most frequently asked question from our experiences is – How much to budget for advertising cost?
Many businesses peg this at a percentage of Projected Gross Revenues. This ranges from 2% for established businesses / brands to upto 5% for startups. However, if competition in your industry is high, it may go upto 10% or more depending on type of products or services.
However, it is important to spread the available advertising funds optimally spread across:
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- brand development costs (such as website, blogs, sales collateral, etc.)
- promotional costs (campaigns, advertising, events, etc.)
- and never let it be considered after other business expenses
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Are these Demons of Online Advertising hurting you?
Irrespective of the type of business, be it a small unit or a large corporation, online advertising campaigns are plagued with demon attacks that can hurt your profitability and growth. Let’s take a peek at some of the most commonly seen issues that hurt advertising projects,
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- Money spent haphazardly on multiple campaigns without clear goals
- Poor inter-department coordination leading to poor communication strategy
- Panic selection of advertising agency or in-house teams to manage campaigns
- Overspending in fits on realizing that products aren’t selling by themselves!
- Relying heavily on word-of-mouth referrals allowing competitors to fill need gaps
- Sticking to fixed advertising plan ignoring changes in market demand or buyer trends
- Ignoring analytics, ctr, cpc, competitive intelligence, seasonal parameters, optimization, etc.
- Loosing patience and overlooking strategic followup steps by dreaming of overnight success
- Not tracking leads/sales productivity per campaign/channel/advertising/collateral
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Whys is this important? Because there’s a lot of “Advt.” noise today. And an average person is exposed to avg. 5000+ ads per day (online+offline) for a dropping attention span that is currently only 8 seconds!
You must make sure your “PPC/CPC” make your “Brand” stand out and generate demand/leads/sales… For this, it’s important to have a well planned, well executed, customer acquisition strategy. Read why.
How Much Or How To – What’s Real Advt. Challenge?
Your business may be contemplating how much to spend on advertising of your products and services. And while this is happening, and will recur periodically to challenge you on your decision, it may be worthwhile to consider – How you spend your advertising budget.
Thankfully, with multiple digital media available, you can get started with low-to-no-cost advertising campaigns. All you require is a good plan. And the best part is you can gradually increase your small business advertising budget by re-investing a small percentage of sales generated with Aidasinc’s performance marketing services.
To get a sense of how this works, take a look at Aidasinc’s Offer below.
Get experts to help fortify your advertising and marketing strategy, website, online presence, branding, traffic and audience engagement for following benefits:
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- faster business growth
- higher profitability per sale
- better venture funding
- handsome company valuation
- competitive market leadership position
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Start growing your online presence today!
Get free marketing assistance, for startups and smallbusinessowners, during happy hours every Friday 4pm to 6pm: aidasinc.com/happyhours