Supercharging your business’s growth through effective advertising is like igniting the afterburners on a high-performance jet. When done right, you skyrocket; vendar, 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
In a world where even the tiniest details can make or break a company’s ad game, grasping the decision-making that goes into every campaign is crucial.
Your ad budget is the financial backbone of your marketing efforts. Every dollar should be put to work effectively to give the best ROI, aka return on investment. It isn’t a number you pluck from thin air or borrow from the neighbors. It needs to be strategic, just like your advertising needs to be targeted.
Vendar, 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.
Na primer, 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. torej, 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, upravljanje zalog, 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 | |
| Izdelek #1 | 33.33% | 50% | |
| Izdelek #2 | 54.54% | 120% | |
| Izdelek #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:
- Niša: 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: Za uveljavitev blagovne znamke boste morali v zgodnjih fazah svojega poslovanja dodatno porabiti za oglase. Podjetja v pozni fazi se lahko izognejo porabi že tako malo 3% njihovega letnega prihodka od oglaševanja.
- Robovi: Oglaševalski proračun je običajno odvisen od vaše marže. Višja je marža, več denarja boste porabili za oglase.
Ameriška uprava za mala podjetja svetuje dodeljevanje 7-8% vašega bruto prihodka za trženje in oglaševanje, če je vaša letna prodaja pod $5 milijonov in vaša stopnja čistega dobička se giblje med 10% do 12% post-stroški.
Razumite, da to vključuje tudi stroške razvoja blagovne znamke, vključno s porabo na spletnih mestih, blogi, in družbenih medijev. Običajno, ne boste imeli več kot 3-5% vašega letnega prihodka, ki ga boste porabili za oglaševanje.
S tem v mislih, poglejmo postopek po korakih za izračun proračuna za oglase.
korak 1: Izračunajte svoj najmanjši in največji možni proračun za oglase
Kot rečeno, večina podjetij dodeli 5 do 10 odstotkov letnega prihodka za oglaševanje. Tukaj, 5 odstotkov bi bila tla in 10 odstotkov zgornje meje.
Začnite z izračunom teh spodnjih in zgornjih omejitev vaše porabe za oglaševanje.
Storiti to:
- Vzemi 5% in 10% vaše predvidene letne prodaje
- Vsako od teh številk pomnožite s povprečnim pribitkom na transakcijo.
Na primer, Predpostavimo, da bo vaše podjetje letos ustvarilo 1 milijon dolarjev letne prodaje. 5% in 10% vaše letne prodaje bi bilo $50,000 in $100,000.
Recimo, da je vaša stopnja dobička 60%, tj., narediš $600,000 v dobičku z $400,000 v stroških.
Zato, vaš pribitek bi bil 150% ($600,000/$400,000 * 100).
Imate takšne figure:
| Letna prodaja (A) | 5% prodaje (B) | 10% prodaje (C) | Markup (D) | 5% označevanja (B * D) | 10% označevanja (C * D) |
| $1,000,000 | $50,000 | $100,000 | 150% | $75,000 | $150,000 |
torej, vaš najnižji in najvišji proračun za oglase je $75,000 in $150,000.
korak 2: Izračunajte prilagojeni proračun za oglase
Zgoraj je vaš "surov" proračun, saj ne vključuje vaših stroškov zasedenosti (tj., stroški vodenja trgovine).
Da dobite svojo prilagojeno postavo, preprosto odštejte stroške zasedenosti od najnižjega in najvišjega proračuna.
Na primer, predpostavimo, da so to letni stroški, povezani z vodenjem trgovine:
- Programska oprema za e-trgovino: $2400
- Procesor plačil: 2% letne prodaje ($20,000)
- Gostovanje: $1200
torej, vaš "strošek zasedenosti" je $23,600.
Vaš prilagojen proračun za oglase je naslednji:
- Najmanjša: $51,400 ($75,000 – $23,600)
- Največ: $126,400 ($150,000 – $23,600)
Ta številka vam pove, koliko lahko pričakujete, da boste porabili za letne oglase.
Profesionalni nasvet: Stroške zasedenosti lahko zmanjšate s proračunom prijazno platformo za e-trgovino, kot je Ecwid proizvajalca Lightspeed. You’ll get a robust online store fully hosted and maintained by Ecwid, plus dozens of built-in business management and marketing tools to grow your business.
Best Practices for Effective Advertising and Budgeting
zdaj, you have step-by-step instructions on how to calculate your ad budget. 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. V nasprotnem primeru, it’ll be hard to evaluate the effectiveness of advertising.
Whether it’s to boost sales, increase website traffic, or elevate brand awareness, your objective should be crystal clear even before you boot up an Excel sheet.
Goals should be Specific, Measurable, Achievable, Relevant, and Time-bound. Known conveniently as S.M.A.R.T, these goals ensure your intent is as sharp as your execution should be.
Keeping your objectives and goals in mind will help you determine the types of ads you need to run and the platforms you should use. Na primer, if your goal is to increase brand awareness, social media ads may be better than traditional print or TV ads.
Adjust for Long Game vs. Quick Win
Advertising effectiveness ultimately boils down to how well your tactics align with your goals.
Different objectives call for other strategies. Dolgoročna prizadevanja za gradnjo blagovne znamke zahtevajo trajno, dosledna prisotnost oglasa. Hitra prodaja bi lahko spodbudila k hitrejši, kratkoročno oglaševalsko akcijo.
Razmislite o oglasnih platformah
Kje postavite svoje oglase, lahko pomembno vpliva na njihovo učinkovitost. Razmislite o svoji ciljni publiki in o tem, kje na spletu preživljajo svoj čas. Pomagal vam bo izbrati najprimernejšo platformo za vašo oglaševalsko akcijo.
Razmislite o uporabi več platform, da dosežete širše občinstvo in povečate možnosti za uspeh. Na primer, if your target audience is primarily young adults, social media platforms like Instagram and Snapchat may be better. Ob istem času, TV advertising effectiveness is likely to be low.
Dodatno, different ad platforms offer various types of targeting options. Na primer, Facebook and Google Ads allow you to target specific demographics, zanimanja, vedenja, and locations. It can help narrow your audience and ensure your ads reach the right people.
torej, 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 Kliknite nanj. 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 Poročila tool. It has a Marketing section that helps track order sources, be it Google ads, Facebook oglasi, or other marketing channels.
Zaviti
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? Kontrolni seznam.
- 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
