The magic number of Advertising and Promotion….
I see many small to medium sized business’ financial statements and in every case there is a pattern…if marketing spend is at benchmark, the business is typically doing fine, if it is below benchmark the business is struggling or declining, if it is above benchmark the business is often growing (if the dollars are well used)….
So what’s the magic number? It differs slightly among industries but in general the target marketing budget is approximately 2% of Revenue.
Check yours, see if your Marketing spend matches your results; if you are spending above benchmark, is your business growing? If you are spending less than benchmark, consider increasing your budget to increase revenue or prevent decreases in revenue.
If you are not getting the results you want, talk to us, this is the number that drives growth.