Friday, March 7, 2008

Advertising spend levels

I've often been asked, "What's the right advertising budget to launch a product or brand properly?" After the uncomfortable pause and the inevitable, "It depends..." the answer is:

  • A typical annual marketing or advertising spend is between 3-6% of revenue.

  • So an aggressive spend would be in the 10% range.
That said, I'd absolutely suggest doing a test and roll approach, especially if you're entering unfamiliar waters with audience, category, media, products, price or promotion.

So, for example, develop a functioning marketing model that is repeatable and make your mistakes and learn with smaller, targeted programs until you are confident you've got the right mix.

This will allow less budget to be more repeatable, over longer periods of time... and yield better results.

Here's a link to our comprehensive marketing plan template document we offer that may provide deeper insight for planning a marketing launch.

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