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December 28, 2015
2016 Marketing Budget
Planning your 2016 budget? Marketing should be up to 20% of your budget if you want to get ahead of your competition. This is an interesting article from Entrepreneur Magazine:
An excerpt from the article:
The first question we ask a new client is, “Do you know what your budget is?” Usually that’s when we see the client’s eyes get as big as saucers as they reply, “I have no idea! That’s what I thought you were here for.”
Over the past five years, we’ve developed what we call “marketing math” to help clients define exactly what they should be spending on marketing:
New companies: For companies that have been in business for one to five years, we suggest using 12 to 20 percent of your gross revenue or projected revenue on marketing. (Companies less than a year old, tend to need to ramp up before spending marketing dollars.)
Established companies: For those companies that have been in business more than five years and have some market share/brand equity, we suggest allocating between 6 and 12 percent of your gross revenue or projected revenue.
While this may seem like a lot, remember new and emerging brands are looking to capture new market share and develop brand recognition with an audience that has absolutely no idea who they are. That’s why it’s so expensive. Once the brand is established and a portion of the market is brand-conscious that number drops significantly.
Clay Hamner, is the owner of Lythos Studios which came into existence 16 years ago in December 1999. Lythos Studios was created by a few employees from Graphics-3, which had been a family business that specialized in black and white ad production for advertising agencies from New York to Florida.
A video produced for Fiamour Lingerie in Carytown, Richmond, Virginia.
Lythos Studios is a full service advertising and marketing agency that is invested in the success of our clients. We work to develop unique brands and messaging with forward-thinking strategy and state of the art design. Helping you grow your business is our business.