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Henry Ford on Advertising
How much do small businesses spend on advertising?

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How much do small businesses spend on advertising

The U.S. Small Business Administration recommends spending 7 to 8 percent of your gross revenue for marketing and advertising if you’re doing less than $5 million a year in sales and your net profit margin—after all expenses—is in the 10 percent to 12 percent range.

This in turn results in many small business advertising budget falls into the category of having between $6 000 to $11 000 to spend per month.

Not surprisingly, but younger business owners tends to spend more on digital advertising.

It can be quite overwhelming to start diving into the digital marketing arena. It is easy to go wrong and end up with very costly campaigns that does not yield any return.

You are strongly advised to get help from professionals to set up your campaigns properly. 

You want to narrow down on those that will see your ads so they realistically have a potential of being your customers. Most advertising platforms are offering you effective tools to drill down the audience based on geographical location. You have a vast number of different softwares available for identifying keywords, Googles own free tools actually quite good, others offered in the marketplace ranging from one time purchases to expensive costly monthly subscriptions, however, you can come a long way with some common sense and thinking only slightly outside the box.

As an example – “Dentist in Colorado” may be very competitive, whilst “Teeth whitening Colorado” may have less costly competition but still have searches.

Another example could be “Plumber in Fearndale” and Plumber emergency repair in Fearndale” 

Those straight run advertising campaigns will give visitors to your site, and one of the new ways of advertising is through so-called retargeting of visitors.

Retargeting is extremely cost-effective as it is only displaying ads to those that have already visited your site and if used right, unmatched when it comes to conversions. It can be said that Retargeting is the only advertising method that amplify any other advertising you may have in place.

Could/Should you rely on paid traffic alone?

Short answer for most businesses is – No.

What you want to visit your site is visitors that have an interest in what service and product you are offering.

To run PPC (Pay per Click) campaigns can be very costly and break any budget if not used “responsible”.

It is also a fact that there are some reluctancy towards advertisements.  

Think about it – When are YOU actually most motivated to actually take action on something you find online?

Is it not when you have identified a need and are sitting down and are making a search for the product or service online?

You actively use Google (or any other search engine) to bring up alternatives for what you are searching for so you can select what suits you best. Whether that is a restaurant, emergency repair, special medical needs or whatever.

So – those that meets your search criteria and are found on the first page would really be close to a hit.

And so should you think about your own business as well.

You should put some efforts into positioning your business website on the front page of Search Engines – and as Google is way way bigger than all others together, they should serve as the reference.

Organic traffic from Google is the most valuable traffic you can get. Bar none.

Here at Diggitally.com we are giving you the best of the two worlds, a method to get organic traffic from Google and a method for following up with all your sites visitors. Read more about our services here

A quick search on the net for “What size should a small business advertising budget have?” will return many articles predicting more or less the same as referenced to from U.S. Small Business Administration

Henry Ford on Advertising

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