Defining Your Advertising and Marketing Budget
Here are two questions to consider when trying to get your advertising and marketing budget approved: Are there budget standards in place for marketing and advertising? How can I secure a budget?
The long and short of it is that budgeting for marketing activities and advertising should be between 8 and 12 percent of your revenues. There are certain factors that may influence these numbers from one company to another, but on average a company spends about 6 percent of sales on advertising expenditures alone. And you may end up spending well over those percentages if the following conditions exist:
- You’re building a new brand.
- You’re launching a new product or service.
- Your brand is a luxury brand.
- More than 10 percent of your revenues come from online sales
- You are selling commodity products.