12 Nov How to use the advertising budget for small businesses
In this post we look at how billboards can fit easily into an advertising budget for small businesses and methods on how to allocate an advertising budget.
Methods for allocating an advertising budget for small businesses
Small to medium size companies tend to use a variety of methods. They are based on income or as a percentage of costs, to determine marketing and advertising budgets.
Here are the most common:-
Percentage of sales method
A percentage of sales is the most common way to be able to determine your marketing budget. You may use current sales, past sales or projections for future sales as the basis for your calculation.
Many marketing people recommend that you choose 10 percent of your sales as your advertising budget.
Calculate 10 percent of your annual sales and then multiply each number by your markup percentage, which is the ratio of your product costs to your selling price.
The balance remaining represents the range that you should set for your marketing budget.
As a Percentage of Total Budget
If you are starting up a new business and venture, you may need to allocate a bigger portion of your budget to marketing.
Many start ups tend to allocate between 20 and 30 percent of their total annual budget to advertising. This is during the first years of trading.
How billboards can fit easily into an advertising budget for small businesses
Billboards are often thought to be a very expensive advertising medium due to the sheer size and impact of them. Small and medium size businesses often see national brands on billboards who have large advertising budgets to invest giving them the impression that it is something that is out of reach for them.
The fact of the matter is that billboards are now more affordable, cost-effective, easier to book than ever. We at Amplify Outdoor feel that this form of advertising should be available to businesses of all sizes. We make it easy for billboards to fit into an advertising budget for small businesses.
WHY DO YOU SEE NATIONAL BRANDS ON BILLBOARDS ALL THE TIME?
The reason why you always see national brands on billboards is because they work!!!!!
If you would like to find out more about using billboards for your business, please contact us today for a chat