Supercharging your business’s growth through effective advertising is like igniting the afterburners on a high-performance jet. When done right, you skyrocket; azonban, a miscalculation could result in a rapid descent.
That’s why landing on the perfect ad budget is crucial. But how do you define what’s ‘perfect’? It’s about aligning every cent spent with your business goals, and we’re here to be your mission control.
Why Your Ad Budget Matters
Egy olyan világban, ahol a legapróbb részletek is meg tudják változtatni vagy megtörni egy cég reklámjátékát, a döntéshozatal minden kampányban döntő fontosságú.
A hirdetési költségkeret a marketing erőfeszítéseinek pénzügyi gerince. Minden dollárt hatékonyan kell használni a legjobb ROI elérése érdekében, más néven befektetés megtérülése. Nem légből kapott szám, vagy kölcsönkéred a szomszédoktól. Ennek stratégiainak kell lennie, csakúgy, mint a hirdetésének célzottnak kell lennie.
azonban, the critical question lingering in every business owner’s mind is, how do I know how much to spend for effective advertising?
Before Calculating Your Ad Budget
Figuring out how much to spend on ads is a matter of balance. You don’t want to waste money by overspending, nor do you want to be ineffective by underspending. There is a Goldilocks-like “just right” zone that will bring in results without affecting your margins.
Before we start, there are a few key terms you need to understand:
Markup is the difference between the cost of a product and its selling price (gross profit above cost). It is usually expressed as a percentage.
Például, if you sell a product for $150 when it only costs you $100, your markup is 50%. You’ll want this figure for all your products individually and in your store.
Margin is your gross profit expressed as a percentage of the selling price.
In the above example, your profit would be $50. És így, your total margin would be 33.3% ($50/$150).
Cost of occupancy is the cost of keeping your ecommerce store up and running (such as web hosting, készletgazdálkodás, and shipping and handling). These costs are usually static and predictable.
You need these metrics before you can start calculating your ad budget. In a separate spreadsheet, make a note of these metrics.
You might have something like this:
| Margin | Markup | Cost of occupancy | |
| Termék #1 | 33.33% | 50% | |
| Termék #2 | 54.54% | 120% | |
| Termék #3 | 37.5% | 60% | |
| Average for Store | 43.39% | 76% | $30.000 |
Once you have this data, you can start calculating your ad budget.
Calculating Your Ad Budget for Effective Advertising
How much you can spend on ads will depend on three things:
- Fülke: Stores in certain niches can get away with spending less on ads because of higher margins or stronger word-of-mouth or social media reach. This is particularly true for fashion or highly niche-specific stores.
- Business stage: You’ll have to spend extra on ads in the early stages of your business to establish your brand. Late-stage companies can get away with spending as little as 3% of their annual revenue on advertising.
- Margins: Advertising budgets are usually a function of your margin. The higher the margin, the more money you’ll spend on ads.
The US Small Business Administration advises allocating 7-8% of your gross revenue towards marketing and advertising if your annual sales are under $5 million and your net profit margin ranges between 10% nak nek 12% post-expenses.
Understand that this also includes brand development costs, including spending on websites, blogok, and social media. Általában, you’ll have no more than 3-5% of your annual revenue to spend on advertising.
Ezt szem előtt tartva, let’s look at a step-by-step process for calculating your ad budget.
Lépés 1: Calculate Your Minimum and Maximum Possible Ad Budget
Mint említettük, most businesses allocate 5 nak nek 10 percent of their annual revenue to advertising. Itt, 5 percent would be the floor and 10 percent the upper limit.
Start by calculating these lower and upper limits on your ad spend.
Ezt csináld meg:
- Take 5% és 10% of your projected annual sales
- Multiply each of these figures by the average markup per transaction.
Például, suppose your business is projected to do $1M in annual sales this year. 5% és 10% of your annual sales would be $50,000 és $100,000.
Suppose your profit margin is 60%, azaz, you make $600,000 in profits with $400,000 in costs.
Ezért, your markup would be 150% ($600,000/$400,000 * 100).
You have figures like this:
| Annual Sales (A) | 5% of Sales (B) | 10% of Sales (C) | Markup (D) | 5% of Markup (B * D) | 10% of Markup (C * D) |
| $1,000,000 | $50,000 | $100,000 | 150% | $75,000 | $150,000 |
És így, your minimum and maximum ad budget is $75,000 és $150,000.
Lépés 2: Calculate the Adjusted Ad Budget
The above is your “raw” budget since it doesn’t include your cost of occupancy (azaz, the cost of running the store).
To get your adjusted figure, simply deduct the cost of occupancy from the raw minimum and maximum budget.
Például, suppose these are the annual costs associated with running the store:
- Ecommerce software: $2400
- Payment processor: 2% of annual sales ($20,000)
- Tárhely: $1200
És így, your “cost of occupancy” is $23,600.
A módosított hirdetési költségkeret a következő:
- Minimális: $51,400 ($75,000 – $23,600)
- Maximális: $126,400 ($150,000 – $23,600)
Ez a szám azt mutatja meg, hogy mennyit költhet éves hirdetésekre.
Profi tipp: Csökkentheti kihasználtsági költségeit egy olyan pénztárcabarát e-kereskedelmi platform használatával, mint például Ecwid a Lightspeedtől. Egy robusztus online áruházat kap, amelyet teljes mértékben az Ecwid üzemeltet és karbantart, plusz tucatnyi beépített üzletirányítási és marketingeszköz a vállalkozás fejlesztéséhez.
A hatékony reklámozás és költségvetés-tervezés legjobb gyakorlatai
Most, lépésről lépésre útmutatást kap a hirdetési költségkeret kiszámításához. For best results, here are some best practices to keep in mind:
Start Small
If you’re just starting with advertising, it’s always better to start small and gradually increase your budget as you see results. It will help you avoid overspending and allow you to make adjustments along the way.
Set Clear Goals and Objectives
Before creating your ad budget, it is vital to identify your business goals and objectives. Másképp, it’ll be hard to evaluate the effectiveness of advertising.
Whether it’s to boost sales, növeli a webhely forgalmát, vagy növelje a márkaismertséget, a célnak kristálytisztán kell lennie még az Excel munkalap elindítása előtt.
A céloknak konkrétnak kell lenniük, Mérhető, Elérhető, Ide vonatkozó, és Időhöz kötött. Kényelmesen S.M.A.R.T. néven ismert, ezek a célok biztosítják, hogy szándékod olyan éles legyen, mint amilyennek végrehajtásodnak lennie kell.
A célok és célok szem előtt tartása segít meghatározni, milyen típusú hirdetéseket kell futtatnia, és milyen platformokat érdemes használnia.. Például, ha a cél a márkaismertség növelése, A közösségi média hirdetések jobbak lehetnek, mint a hagyományos nyomtatott vagy televíziós hirdetések.
Állítsa be a Long Game vs. Gyors győzelem
A reklámok hatékonysága végső soron azon múlik, hogy a taktikák mennyire illeszkednek a céljaihoz.
A különböző célok más stratégiákat igényelnek. A hosszú távú márkaépítési erőfeszítések tartós, állandó hirdetési jelenlét. A gyors eladások sürgethetik a villanófényt, rövid távú reklámkampány.
Fontolja meg a hirdetési platformokat
A hirdetések elhelyezésének helye jelentős hatással lehet azok hatékonyságára. Think about your target audience and where they spend their time online. It will help you choose the most appropriate platform for your ad campaign.
Consider using multiple platforms to reach a wider audience and increase the chances of success. Például, if your target audience is primarily young adults, social media platforms like Instagram and Snapchat may be better. Ugyanabban az időben, TV advertising effectiveness is likely to be low.
Továbbá, different ad platforms offer various types of targeting options. Például, Facebook and Google Ads allow you to target specific demographics, érdekeit, behaviors, and locations. It can help narrow your audience and ensure your ads reach the right people.
Így, if you’re wondering, “Is social media advertising effective?” the answer is it definitely is, as long as the ads are targeted right.
Using Ecwid by Lightspeed for your online store, you can optimize your Facebook and Google ads with Kattintson rá. It’ll help you set up and automate ads and optimize them for a better return on investment.
Track and Analyze Ad Data
Keep track of your ads’ performance and use this data to make informed decisions about your budget. Adjust accordingly if certain ads or platforms don’t yield the desired results.
If you use Ecwid by Lightspeed, measuring advertising effectiveness is easy with the Jelentések tool. It has a Marketing section that helps track order sources, be it Google ads, Facebook hirdetések, or other marketing channels.
Tekerje fel
With these strategies in hand, figuring out an ad budget that meets your business goals and guarantees an excellent return on investment turns into a smart move, not a scary one.
Dealing with ad budgets isn’t just about finance but vision. It’s about translating the intangibles of advertising into actionable strategies that leave no room for interpretation — and every room for growth.
You’re not just calculating an ad budget; you’re architecting your path to market success. And with the strategies unearthed here, you’re set to craft an advertising budget that’s not just a figure on a sheet but the lifeblood of your most effective advertising.
Do you want to learn more about advertizing with Google?
- Intro to Advertising: Where to Begin When You’re a Beginner
- Google Ads 360: A Comprehensive Guide to Google Advertising
- Calculating Perfect Ad Budget To Match Your Business Goals
- Is Your E-Commerce Store Ready for Paid Ads? Ellenőrzőlista.
- 10 Quick Tips For Effective Mobile Ads
- Google Adwords for Online Stores: 9 Money-Saving Tips
- How to Build Killer Keywords Lists for Google Ads
- How to Get Google Ads Certification
- Why Link Google Ads With Search Console and Google Analytics
