One question looms large for every business owner: “How much should I allocate for my advertising budget?” It’s a valid concern, considering that getting this balance right can significantly impact your company’s success. At Nectar, we’ve got your back, and we’re here to shed some light on this critical aspect of your digital marketing strategy.
For our medium-sized business clients operating in Canada and the USA, knowing where to invest your advertising dollars can make all the difference. So, let’s dive in and break it down.
Canada Bound:
If you’re running a medium-sized business in the “Great North”, we recommend allocating between 5% and 10% of your total annual revenue to your advertising budget. Considering a revenue of $2,000,000, this translates to $100,000 to $200,000 annually. A hefty slice of this should go into digital advertising, focusing on online marketing efforts such as Google Ads, Facebook Ads, Instagram Ads, and SEO. Don’t forget to throw in a bit for traditional advertising if it suits your business model.
USA Soaring:
For our clients south of the border, the game plan is slightly different. With a total revenue of $5,000,000, we suggest dedicating 7% to 12% of that, or $350,000 to $600,000 annually, to your advertising budget. In the USA, the digital realm should still be your star player, but traditional advertising should play a more significant role here.
Remember, the key is to focus your efforts where they’ll yield the best results. In both Canada and the USA, pinpoint your geographic & demographic focus to ensure your message reaches the right audience in your target regions.
As your trusted digital marketing agency, we’re here to guide you, optimize your advertising campaigns, and ensure you’re making the most of your budget. Need help fine-tuning your strategy? Just give us a call, and we’ll tailor a plan that suits your unique business needs.
Reach out to us today, and let’s discuss your advertising budget and marketing strategy for 2023.