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Investing In Visibility

Finding your ideal advertising spend.

Advertising is a vital component of business success, serving as the bridge that connects companies with their potential customers. No one will come if they don’t know you exist. In essence, advertising is not just about promoting products; it's about sustaining a narrative that resonates with consumers, fosters brand loyalty, and fuels the long-term success and growth of a business. Planting seeds and tending the garden will increase your odds of a good harvest.  

Where do you start? The percentage of sales allocated to an advertising budget can vary widely, here are some general guidelines:

Industry Standard:

On average, businesses might spend around 2% to 5% of their gross sales on advertising. However, this can vary greatly. For example, retail businesses often spend more, around 4% to 10%, due to high competition and consumer focus. Or in our case a change in the weather. 

Growth Stage:

Startups or businesses in a growth phase might allocate a larger portion, sometimes as much as 10% to 20% of their gross sales, to build brand awareness and market share.

Business Goals:

Companies aiming for aggressive growth or those entering new markets might also spend a higher percentage of sales on advertising compared to businesses focused on maintaining their market position.

Profit Margins:

The available budget for advertising also depends on the profit margins of the products or services sold. Businesses with higher margins can afford to allocate a larger percentage of sales to advertising.

The Economy:

Economic factors and market conditions can influence the advertising budget. During economic downturns, businesses might reduce their advertising spend, while in a booming economy, they might increase it to capture more market share.

Ultimately, finding the right advertising budget is more of an art than a science, and it varies from business to business. The demographics of Tahoe vastly differ from our close neighbor Reno,  NV.  Being tourist based ad a few factors like the weather and it’s effects on business.  Pinpointing an exact number may be difficult but these guidelines should help to get you close to a viable starting point that you can adjust as life’s little lemons and rainbows get tossed your way.  Staying nimble and responding quickly can be a double-edged sword. Wield it wisely.  By thoughtfully allocating a budget for advertising, you not only minimize stress over ad choices but also steer your business with confidence, keeping it visible and vibrant in the marketplace.

If there is a topic you’d like to hear more about by all means comment below or direct message and I’ll do my best.

Nothing better than a good question to jump into.

Reach out for a talk over coffee or a hike I give information freely. I only ask to be paid when I do the work.

Comment below or share.

Trina Gold 

Master Creator

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