Advertising Strategy

3. The Budget

Deciding how much you should spend is not an exact science.

You may have to advertise in more than one form of media in order to maximise response levels. You should always budget for an online presence.

3.1 How much do you normally spend?

• How much did you spend last year, and how effective was it, in relation to your business objectives?

3.2 What are your competitors doing?

• If your competitors are advertising heavily, you may need to match their budgets to ensure that your message is heard.
• If a new competing product has been launched, you may need to fight off the competitive threat.

3.3 How far are you from achieving your objectives?

• If you are launching a new product into a new market, you may need to spend heavily to achieve customer awareness.
• If your product is already well established, you may only need a few advertisements to keep up 'front of mind' awareness.

3.4 What is your advertising worth to you?

• What sales margins do you make and how much repeat business can you expect?
• What is the lifetime value of a new customer?
• Are you considering a brand-building investment? Are you planning a short-term sales drive or longer-term awareness?
• How effective do you expect your advertising to be?

3.5 What media can you afford to consider?

The cost of the media does not always equate to its potential power. A simple entry in a local phone book or online directory can generate a lot of enquiries.