Michael Kaminsky’s Post

How to manage your media budget

How manage your media budget

How Much Should Local Consumer Businesses Spend on Marketing? If you're running a local consumer business, knowing how much to allocate for marketing can make a big difference in driving growth. Here are some key benchmarks that can guide you: General Marketing Spend: Small businesses typically spend **7-8% of their revenue** on marketing if they make less than $5M in annual revenue and have healthy profit margins (10-12%). (*SBA*). Highly Competitive Markets: In highly competitive local industries, spending can increase. Retail businesses, for instance, may spend up to **20% of revenue** in order to stay visible. (*American Marketing Association, 2023*). Digital vs. Traditional Split: On average, **50-60% of the marketing budget** should go toward digital, with the rest allocated to traditional advertising like print and direct mail, depending on industry. (*Gartner CMO Spend Survey, 2023*). Industry-Specific Spending: **Retail & e-commerce**: 15-20% of revenue. **Professional services**: 5-10% of revenue. (*HubSpot, 2023*). Smart budgeting is key to business growth! Knowing where to invest can make all the difference in reaching your target audience and increasing revenue. #MarketingStrategy #LocalBusiness #Advertising #BusinessGrowth #MarketingBudget #DigitalMarketing #TraditionalMarketing #BeLocal What percentage do you spend on marketing for your business? Let's discuss!

Thrilled to share this latest piece from my rockstar colleague, Justine O'Neill, 🌟 "How to be both – breaking out of the brand vs performance marketing debate." Justine dives into the marketing maze, exploring the dance between short-term impact and long-term brand building. With 2024 already upon us, it's time to navigate the budget battleground and strike that perfect balance. Dive in for some marketing wisdom! 💼🚀📈 #MarketingStrategy #BrandPerformance #AnalyticPartners #Brandformance #Perfranding

Great advice as Marketers head into 2025 Planning season: https://lnkd.in/eEpYhAaE

Wise words for marketers to take note of, per Les Binet "We need to start talking the language of finance. Commercial advertising is always about sales and profit, even if the payback takes time. Stop talking about “awareness” and “image” and start talking about “cashflow” and “shareholder value”. If we can measure and prove that brand ads generate profit, CFOs will give us their blessing." https://lnkd.in/g2njDzJ4

Here are 3 use cases for Diminishing Returns every marketer should know: 1. Yesterday’s Performance: - “How did I perform yesterday?” For marketers, it turns directly into replacement-for-lack-like reporting. It says, “Last week, this channel generated $100,000 in revenue, which could vary dramatically from the last click number that might have been dramatically below that or above that.” 2. Lift/Incrementality: - “If we spent $1 (or a pound or a euro), did we generate more than $1 in performance?” Its the average performance of $1 spent. For example, if we spent $100,000 to generate $100,000, that would be a breakeven opportunity. And if you are at breakeven, it demonstrates the third use case. 3. Scaling Spend: - “What would happen if I scale my spend?” If your spent of $100,000, and drove $100,000, your ability to scale effectively is in question. Since your average performance was one-to-one, your next dollar in is guaranteed to be less than one. So you don’t have the opportunity to scale more here. This understanding can guide strategic decisions on where to allocate your budget for maximum impact. #marketingeffectiveness #marketing #mediaplanning

It's time to start thinking about your FY26 annual planning with Best Buy Ads. We have a host of ways for you to buy into our program, and being proactive now can help secure marketing materials all year long. Look for more information to come on our annual planning strategies in the near future. #RetailMedia #BestBuyAds #AnnualPlanning

Insights from Marketing Week on what marketers should Stop, Start, and Continue in 2024. A key takeaway: ditching last-click attribution and focusing on effective budget utilization. #MarketingTrends #BudgetingWisdom #AttributionRevamp #MarketingInsights #2024Strategies https://lnkd.in/eEHnA-eN

I often hear "we need to decrease marketing spend during XYZ period because of our slower traffic"... here's why I say F NO, YOU DON'T! 1. Stay Top of Mind: During slower periods, your competitors may also reduce their marketing efforts, leaving an opportunity for you to stand out and gain more visibility. Maintaining or increasing marketing spend allows you to stay top of mind with your target audience. 2. Prevent a Revenue Drop-Off: Slower months typically mean fewer sales, but cutting marketing spend can accelerate the slowdown. Keeping marketing efforts steady or increasing them during these months can help mitigate a potential revenue drop-off. 3. Build Momentum for the Next Growth Cycle: Marketing during slower months helps build a pipeline of leads and potential customers who are ready to convert once business picks up. By staying visible, you can set the stage for a strong comeback when the peak season returns. 4. Take Advantage of Lower Competition: If other businesses cut back on their marketing during slower periods, it could mean cheaper advertising costs (e.g., lower CPC or CPM on digital ads). This could provide you with more exposure for less money, allowing you to dominate the market during this time. 5. Keep Brand Awareness High: A steady presence in the market, even during slower times, reinforces brand awareness and credibility. Customers will remember your business when they’re ready to purchase, even if they aren’t making decisions immediately. #FlooringExperts #businessowners #SalesandMarketingTips