Marketing Investment – The Optimal Marketing Budget

Determine The Budget For The Website & Co.

How much money do you spend on your marketing activities? Or to put it another way: How do you decide how much you want to invest in your marketing? Many small and medium-sized businesses often do not know how to budget for marketing spend. They often lack experience because they have only just begun to be present on a website and gain reach on their website with the help of Google ads. We show the different methods that small and medium-sized companies can use to determine their optimal marketing budget for websites and the like!

The Method

With this method, advertising expenditure is measured concerning sales. SMEs usually spend 1 to 3 percent of their sales on advertising.

We have the following three exemplary examples for you:

• For example, a carpenter with ten employees has an annual turnover of 1.2 million euros. According to the% method, he would have to invest 12,000 to 36,000 euros in advertising.
• For example, a doctor with three medical assistants has an annual turnover of 350,000 euros. According to the% method, he would have to invest 3,500 to 10,500 euros in advertising.
• For example, a lawyer with a paralegal has an annual turnover of 200,000 euros. According to the% method, he would now invest 2,000 to 6,000 euros in advertising.

The Need Method

In the first business year, mainly, the need for advertising is very high, as one-off investments have to be made, for example, for a logo, letterhead, shop and vehicle lettering, and website. The essential equipment is essential in the first year, but should also be taken into account for the following years. So stationary has to be reordered, and the service fee for the website has to be paid. We are talking about regular communication with related costs that have to be included in a lump sum every year.

The Target Method

Depending on what you want to achieve with your company, the marketing budget is determined. Goals that you want to achieve can be:

• To assert oneself against a specific competitor in the market,
• To place a new product on the market,
• Open up a new market with an existing product,
• To achieve a certain level of sales, increase in sales or earnings or
• Increase your brand awareness.

Here it is advisable to consult an advertising expert who has the necessary experience to set the appropriate marketing budget.

The Per Capita Method

Another alternative is the calculation per capita. This method is particularly suitable for online advertising, as you can determine precisely what attracting a single customer is worth to you. Every online advertising is now measurable and traceable in the conversion from click to lead to customer.

Example: If winning a customer is worth 60 euros to you, that is precisely the amount invested in advertising to win this one customer. The calculation looks like this: If they click on Google costs 1 euro for the product or service to be advertised; I get 60 clicks; from these clicks, six interested parties can be obtained who call the company via the website and from These leads then become a customer. Measuring success and tracking the conversion is critical here. If the acquisition of a customer becomes too expensive, companies have to readjust and optimize their advertising measures.

Summary

As the saying goes: Many roads lead to Rome. It is similar to budgeting for your marketing. To advertise is essential and necessary, for example, to win new customers or employees or to retain existing customers. Therefore, always plan a marketing budget and implement an optimal marketing mix that guarantees your visibility on-site, with your customers, and on the Internet. An excellent place to start is with a professional website. From here, you can then tackle further advertising measures. We wish you every success with this.

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