Ad Spend: Why staying within budget doesn’t put you at a disadvantage
Ad spend. The dreaded numbers and the cost of putting your business out there. It’s a real struggle for many businesses and definitely something that needs to be addressed. At the end of the day, advertising does cost money, and word of mouth can only go so far. But, you don’t need to spend millions of dollars to hit the ground running. It’s about who you trust with your money and how they use it.
Let’s talk about tiers. As much as we hate categorizing and placing businesses into boxes, it’s the reality of business. You have your little guys and you have the big guys. You have local businesses. Most of these companies have ad spend less than $10,000 on advertising every year and opt to use primarily free or cheaper advertising sources such as social media and word of mouth. Then there are mid-tier businesses. These are not local necessarily, but they’re not on national television, and they don’t have a million followers on Instagram. They might be a chain or a growing start-up. These businesses invest more in advertising, whether that’s creating commercials, paying for airtime, or running paid social media campaigns. Finally, you have your large national/international corporations. These are the companies that dominate the ad space, book Superbowl commercials, and spend millions of dollars on advertising every year. They have corporate offices dedicated to marketing and millions across their social media platforms. These top tier companies are the big spenders. But, not everyone can be like them.
The thing is, not everyone has to be a big spender when it comes to advertising. When you hire a marketing or advertising agency, you give them a budget. Their job is to create content and ads to generate business and ultimately revenue for your company. Just because your budget may be smaller for ad spend than other clients doesn’t mean your business is any less relevant. Business is business whether it’s big or small. We’re trained and built to create something from nothing and that’s what we do. Every single day. It’s why we’re creative and why we love what we do.