If you are running a small business then you must be very careful about the spending. This does not mean that you can overspend if the business is comparatively large. The only benefit you get with a large business is the big marketing budgets. The budget that you use as a small business marketing cost is relatively low. It is due to the limited capital and resources. Finance is also one of the biggest challenges in business. Therefore, you must advertise a business using the best marketing techniques. Additionally, you also have less experience and a small team size. As a result the chances of making a mistake in small business is minimal. Once you read this article, you will get an idea about how much money you need to promote a brand.
Small Business Marketing Cost
Initially many people use social media marketing or the free marketing tools available. These tools help you increase brand visibility in the market. In addition, there is no direct cost involved. On the other hand if you are using paid marketing techniques, you must have a marketing budget. Marketing cost of a small business depends on the medium you select. For example, you want to use Google AdSense or Facebook Ads. We also have an article to compare Facebook and Google Ads to assist you further on this. The small business marketing cost will be different in both cases. But there is one common thing, both work on the pay per click model. If you are using social media advertising, there is no limit on how much you can spend on advertisements. Due to this you get a free hand when it comes to promoting the brand on your terms. If you are using traditional ways of marketing the cost is fixed.
What are the Traditional ways of Marketing?
Newspaper advertisements, outdoor marketing, TV commercials etc. fall under traditional marketing techniques. The cost of advertising is mostly fixed. Additionally, the cost is also high. For example: the cost of playing a TV commercial per 10 second can range between $10 to $200 per 10 seconds.
What is the cost of TV Advertisements?
The actual cost depends on these three factors. This will also impact your total small business marketing cost or budget.
- Viewership or TRP of the TV channel. Channels with the higher viewership will charge a maximum fee.
- Number of times your advertisement appears. For example: the cost per slot on TV is $10 and your advertisement appears 10 times. You are paying $100 in a day.
- Time slots are also important. For example: the cost of TC Ad during 6PM to 10PM is the highest because you get the most viewership
How much is Facebook market fees?
It is part of your social media marketing strategy. Facebook will charge you on a pay per click basis. You only pay when someone clicks on your advertisement. You can buy Facebook Ad with one time payment (post specific) or create an ongoing advertisement. Facebook will charge according to your choice. For example: the cost of promoting a single post on Facebook starts as low as $10. You can increase or decrease small business marketing cost in the form of a daily budget.
Overall Small Business Marketing Cost
The overall small business marketing cost is 30-35 percent of your revenue as per my experience. However, it changes for every industry. For example, the marketing cost for a software company will be different from the marketing cost of a boutique. If you plan in advance and the approach is right you can make it more fruitful.
How critical is social media marketing cost?
Social media marketing cost can make you poor if you do not research enough. There is also a dark side of social media marketing. For example: if you run accelerated ads, then Facebook will spend your money instantly. You can spread it through the whole day for better results.
What is the cost per acquisition in Google AdWords?
The definition of the cost per acquisition depends on your understanding. First of all, check what you expect from the visitor. For example: you expect the customer to fill a form and consider this as a transaction. If the cost per click is $2 then the same will be cost per acquisition.
In another case, you are running an online store. You consider a sale as one transaction. Your total cost of acquisition will be the average cost of all the clicks that lead to this product sale.