How much should small businesses spend on advertising?
Can anyone share any best practices when it comes to calculating an advertising budget for a small business? Is there a best approach?
Top voted answer
Top 10%
Business Coaching
Generally the rule of thumb is to test and measure... Ask yourself this.... If you found a source of advertising that paid you $10,000 for every $1000 spent, how much would you throw at it?
Top 10%
Business Planning
Absolutely - test and measure.
But perhaps you're on the wrong track
"The price of being unremarkable is advertising."
So how can you make yourself more remarkable so that word-of-mouth (still the best form of introduction) can happen? Check out the Gaddie Pitch as a way to articulate this.
Daniel Spark, Director
I agree Maini, test and measure. There is not a magic number that will suit every business. There is no use spending more money on advertising than you see returned, although sometimes the return is not easily measurable.