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BlogBudget Marketing Dollars for Results Not Numbers

Budget Marketing Dollars for Results Not Numbers

The Small Business Administration (SBA) recommends spending 8 percent of your gross revenue for marketing and advertising if you’re doing less than $5 million a year in sales. According to the SBA, if you are doing $5 million in sales, you should budget of $400,000 per year.

That’s a big pile of money, but it is a benchmark based on averages across many sectors. However, if you want a successful marketing budget, you should start with your goals, not a percentage. The percentage only tells you when you are indexing higher or lower than other businesses, it doesn’t tell you if you will be successful.

If you are not forecasting ROI, then you don’t have benchmarks from which to target money or reduce money depending on the success of a particular campaign or effort.

When you have benchmarks based on ROI, then you can and should adjust your budget to support the digital channels that are exceeding the benchmarks and delivering the desired results.

So set your total, or not-to-exceed budget level, and then readjust every 3 months based on the data and your KPIs. Invest more or heavy-up in digital channels where there is potential or signs of significant growth.

1) Start with goals 2) Develop benchmarks 3) Assign budget to reach those benchmarks. 4) Adjust every 3 months 5) Report in a dashboard. It’s budgeting to results, not to a number.

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With almost 30 years’ experience, AMPERAGE didn’t hire Mark … Mark hired AMPERAGE. He is creatively ambidextrous — son of an artist and engineer — and famous for distilling complex ideas down to a few words and a few visuals. As one of our fearless leaders (and our go-to sommelier), Mark works tirelessly to solve the complex puzzle that is “communication.” He’s written a whole book about it. If Mark were a dog, he’d be an Australian shepherd, consistently herding and providing direction to the AMPERAGE flock. Aussies also have two different colored eyes, which Mark thinks is great. Mark moves the needle by digging into research, background and persona for clients. It is from that solid foundation that he can empower clients to build large branded houses.