A lot of businesses set budgets each year, each one tailored to a different division in their business. One of these budgets is for digital marketing. Typically (according to CMO Survey), an average business spends between 5%-10% of their yearly profit on marketing.
The cost you decide to set aside for marketing may depend on the size of your business. And how established you are.
It’s safe to say, though, that the more you’re willing to spend on marketing, the more benefit you will see.
In this post, we’re going to discuss how much a manufacturing business should spend on SEO.
Start-up businesses will typically spend more on Search Engine Optimisation (SEO) because you need to advertise to an unaware audience. If you’re a new business, you need to get customers.
Having no customer base means that a catered plan can’t be made because there’s no predicted profit. So in order to do that, you’ll have to establish a larger budget for SEO.
Large marketing campaigns are risky because they won’t always have the intended outcome. Small marketing strategies (such as optimising websites and targeted social media posts) would have a better reach over time.
The overall budget also depends on what your business is for. Products that are easy to find and not unique will require a higher amount of budget. Why? Because they can also be found by more established businesses with consistent customers. You need to stand out on the market, not hide.
It’s recommended that start-up businesses should be spending 30-50% of their annual profit on marketing strategies.
An established business is likely to pay the least amount on SEO compared to other businesses. They already have a regular client base and more drive than start-up businesses. Because of this, they won’t need as much money to stay competitive.
The created budget for these businesses depends on their manifesto and their performance the previous year. These are statistics that a start-up business may not have.
You may want to go above budget if you’re marketing in a competitive industry. But if your competition is lower, then it’s more profitable for you to reduce your own spending.
Being in a seriously competitive industry can affect any business. Especially if other businesses are gaining more traction and profit than you are.
Any business that is struggling will already have a previously formed strategy and budget for marketing. Amending these to fit the current performance of the business is key in preventing further stagnation.
New revisions need to reflect not only how the business is doing now, but the steps it can take to improve. So for a business that has negative net profits, increasing the existing marketing budget may be the best move.
A trial period with the new strategy is the best way for the business to determine whether it will benefit them or not.
So what’s the take away from this?
There’s not really a specific amount to spend on SEO, it really just depends on what your business can afford.
However, you need to acknowledge that a bigger budget will bring results faster. Spending the bare minimum every month is not going to get your business onto page 1 of Google within three months. You need to be realistic.
If you set a high budget, you will reach your goals quicker. Oppositely, the lower you spend the longer it takes to reach goals.
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