How Much Should my Company Spend on Rebranding/Marketing/Advertising?
Whether you’re looking to rebrand your business, develop a comprehensive marketing plan, or start an advertising campaign, the answer to this question is the same: it depends on your goals.
Anytime we sit down with a prospective client, we begin by learning their goals. Where is your business now, and where do you want to be? From there, we work to create a custom plan specifically designed with your company in mind. Without first understanding your goals, taking you on as a client would be pointless.
As with almost anything in life, what you get out of marketing is directly related to what you put into it. We’re not just talking about monetary value here. Aside from the financial cost, there’s a great deal of planning and strategic thinking that should go into your branding efforts. A properly executed plan can be effective without spending a lot of money. It’s all about how you allocate your resources.
Sure, any marketing firm could easily take your money and proceed to spit out a new website, some photography, and a few printed pieces. What good would this do in the end? These are simply parts of a bigger picture. Without a cohesive plan to back up these deliverables, you’re no better off than when you began. Blindly throwing money at a problem and hoping that something sticks is not a solution; it’s a waste of resources.
With that being said, you were probably expecting to see some actual numbers pop up in this post. If so, this part is for you! It’s important to note that your budget will be dependent upon several factors, including industry type, company size, and stage of development.
The U.S. Small Business Administration recommends that companies spend 7 to 8 percent of annual revenue on marketing. This assumes that your company is a small business with less than $5 million in annual revenue and margins around 10 to 12 percent. The budget accounts for both brand development and business promotion costs.
As for larger companies, the figures become a little more unclear. Specifics aren’t nearly as easy to define. Again, it’s important to note that the branding, marketing, and advertising budgets of companies will vary based on several factors.