How much is enough?

Everyone wants to know…what should you be spending on marketing and advertising? It is probably most often suggested that a marketing budget be based directly upon revenue, typically falling between 2-8%. However, is this the best approach? I found this great article on Business Week on advertising budgets and thought I would share called "What Should You Spend on Advertising?". Interesting to learn that a conglomerate like Wal-Mart actually only spends 0.4% of sales on advertising! I think the best piece of advice in this article is to not just pick a sales percentage and have that be your budget, look at what your competitors are spending, the cost of media, your market and your goals. Budgets should also be reevaluated each year to evaluate results and effectiveness. And, it’s not just about paid advertisements – don’t forget about marketing and how incredibly effective (sometimes more so than a TV commercial) it can be. In choosing a budget, make sure it is at a level your company can support and that you are comfortable with – and then commit and stick with it! You can certainly stray and make adjustments as needed but it’s always a good idea to have a solid plan to get you through the year and make sure the goals you want to achieve are being addressed.