Calculating Your Ad Budget by Hersh Marketing Group

Strategize - then Advertise!

compasHMG

"Advertising without a budget is like going into business without a business plan. You can only hope you're staying ahead of the game. It's playing the game blind, instead of to win."

A. Breuer
Founder and President
Hersh Marketing Group, Inc.

Calculating The Ad Budget

"How much should I spend on advertising?"

That's probably one of the biggest questi ons on your mind. It's definitely one of the questions we're asked the most. So is there an answer to "What's the right amount for an advertising budget?"

The right amount depends on a vital calculation that's usually overlooked. According to standard sources, including the SBA, the magic number is anywhere from 2% to 10% of your gross sales. This is what we call the "one-size-fits-all" formula. Fine if you're a one-size-fits-all kind of business. We've yet to meet one of those. So we take a different approach.

We take into account the real cost of doing business. Your Cost of Exposure. That's the vital calculation we were talking about. Figuring Cost of Exposure into your ad budget makes all the difference in the world. It's based on several factors, like visibility, rent, mortgage, and other variables specific to your business. The result? A budget that is realistic, grounded in real numbers that apply specifically to you. Not some vague, national statistic or industry "standards".

Wondering what the right budget for your business should be? Try it yourself with our free


Ad Budget Calculator

Or call us and we'll help you get the right "number".

People go where they know.™ Do they know you?

Call HMG today. 727-916-1600.