Augmented reality, influencers, interactive content, ephemeral content marketing — these are just some parts of famous marketing techniques used in 2020. Admittedly, they all cost money. It seems that today, more than ever, we are bound to separate a hefty sum for marketing efforts if we are to have any revenue.
Startups are particularly challenged due to the fact they’re just starting and every dollar counts. On the other hand, great marketing is priceless. With such harsh opposites, building a good marketing budget is very challenging.
Here are some pieces of advice you may find useful.
Set Your Revenues
Albeit you are just beginning, certain estimates have to be made. Before thinking about allocating sums to different marketing sectors, determine the amount of money you expect to have in the short and in the long run.
The general rule of thumb says startups should invest as much as possible into marketing particularly to give it a head start. Experts say it’s between 12-20% of the startup’s gross revenue. In comparison, established companies spend up to 10%.
So, out of those 12-20%, you should spend some on the following.
You’ll hire a marketing expert, and the first thing they’re going to do is conduct marketing research, revealing what or who you should focus on.
Marketing research can take various forms, from online surveys to cold calls, or website analytics (provided you have one). Either way, the recommendations are indispensable as the research results can point out whether you’re on the right way, or you should rethink your strategy, products, or even the whole business ordeal.
Your identity is of utmost importance. Investing in a good logo designer always pays off. They can make everything, from your logo, (store) signs, to the letterheads of business emails.
Naturally, there are a lot of designers, some more affordable than the others. Nevertheless, this is not the time to be penny-pinching as a great logo is invaluable. It is easily recognizable, original, attention grabbing, and inspires brand loyalty. Everything a startup needs.
Content is King
Even as you are reading this, you are succumbing to the power of SEO and keywords.
One of the most common ways to generate sales leads is to provide Google-worthy content that will promote your company. A well-written article with a link to your company’s website is what increases the traffic.
Depending on the nature of your business, you may already have one if you’re into blogs or affiliate marketing.
On the other hand, more tangible startups should create an appealing and suitable visual online presentation of the company.
Remember, you’ll be investing in creating the website and its maintenance too.
Overall, there are billions of social media users worldwide, using different media types. To harness the power of Facebook, Instagram, Reddit, or the like, you should hire a social media expert.
Sharing your content with the right hashtags and tags seems pretty self-explanatory, but if you’re willing to give your maximum, you should take advantage of tips and tricks on, for instance, how to entice Reddit users to upvote your suggestion.
Depending on the nature of your startup, you will be able to choose from a multitude of options. A good marketing professional should advise you what kind of paid advertising to spend your budget on. Social media advertising was rising at the beginning of 2020. On the other hand, there were instances when brands benefitted greatly by investing in simple items such as mugs with the company name.
The ongoing pandemic brought in a lot of changes, with brands having to reorder their campaigns. For instance, Domino’s had to change the ad showing people who, at present time, are obviously disobeying the rules of social distancing.
As you can see, there are a lot of factors to take into account when choosing the right kind of paid advertising.
Remember to Update Your Budget
Instead of a conclusion, we’ll finish by reminding you to do frequent marketing budget updates.
A startup usually has quite an exciting journey, so what was planned just a short while ago may need to alter as the projected company’s revenue has soared or decreased. To this end, adjust the marketing budget accordingly from time to time.