It’s never a fun reality shock when you’re organizing your household budget and analyzing your monthly bank statements, and the total amount spent in the “restaurants” category strikes you in the face. The small purchases that you didn’t think would affect your bank ticker ended up eating a massive portion of your monthly and yearly income. According to a 2011 www.economywatch.com article, 57% of American households do not have a budget. Over half of us have no spending plan in place and the lack of a financial plan will undoubtedly invite spontaneous, and often reckless, spending. This all too pervasive habit not only means less money but it also prevents you from making smart, beneficial decisions with your money.
For businesses, this same bad habit parallels with the spontaneous, and sometimes reckless, purchasing of advertising or marketing packages either because the offer seemed enticing or because the decision-maker felt they were getting a “good deal”; and when it comes time for the seasonal sponsorships and fundraisers to start knocking on the doors, even more money leaves the business coffers. Then, when it comes time to analyze the quarterly or yearly budget, all of those “good deals” and booster club sponsorship donations add up to quite large expenses, which can often put the business is a frustrating financial situation.
Equally important is whether those “good deals” were even wise, beneficial expenditures. Not from the perspective of whether or not the price was right or affordable but did the expense work towards achieving a business goal. Did it drive traffic to your storefront? Did it generate revenue? Did it gain widespread brand awareness? Planning an advertising budget isn’t necessarily about estimating the cost of packages and trying to take advantage of good deals, instead the budget should accurately reflect a spending plan that is based on your business’s current goals and objectives. If your goal is to raise product awareness for a new line or promote the opening of a new location then your spending plan ought to reflect those goals. Will that catchy advertising package being pitched as a “good deal” effectively help you in achieving your goals? Merely having a plan in place will prepare you for smart spending. Even the expected seasonal sponsorships should be taken into consideration and worked into your budget. For instance, knowing that you are going to spend $100 total on sponsorships for the year is far more efficient than spontaneously spending $15 here and $25 there.
Without a plan, your money works against you, not for you. Take the opportunity to map out your business plan and plot out an advertising strategy that will help you achieve those goals. Set your budget and never have to worry about shocking bank statements ever again.
Interested in learning more? Please call Advocate Digital Media or complete the contact us form on our site for a free digital marketing consultation. We’d love to learn more about your business and how our services can help you grow your bottom line!
Visit www.advocatedigital.com or call 1-855-322-3355.
And, check out our recent case study on Pandora, the streaming music titan. We want you to be in the know on the latest digital offerings and advertising options!