I’m always asked this question, “How much should I spend on marketing this year?”. My response is usually, “What is it you’re trying to achieve?”. It is possible to deliver an ambitious marketing plan without it costing the earth.
I always start with a blank slate: tell me first where you want your business to be in the next year (or two or five), and I’ll help you build the right strategy and a plan to deliver it. Then we’ll cost it up and decide what really needs to be done – and what funds are available to do it with.
As a general rule of thumb, companies invest 5-10% of their total revenue on marketing to maintain their current position. Companies looking to grow should allow more, up to 15%.
There’s no limit to the amount of marketing that you could be doing – but there is a definite limit to the time and money that you are able to invest.