Much of the answer is going to depend on your company, future plans and product launches, etc. But, when piecing together your 2013 advertising budget, here are three things to strongly consider:
1. You don’t want to cut advertising when you need the most. It’s natural, in an uncertain economy, to want to cut expenses. Be careful that you aren’t going too far in cutting your future revenue at the same time, though.
2. It’s always easier to work backwards. By that we mean the you can take historical response rates and compare them to your 2013 revenue targets. The result should give you a good estimate of what you have to spend on advertising to generate the profits you are counting on.
3. This is a good time to be smart with your advertising expenditures. While we are always fans of testing new ideas, this might not be the year two spend big on unproven ideas. Successful companies move one bit at a time, so that unsuccessful advertising campaigns don’t do much damage the bottom line.
No one can tell you how much you should be spending on advertising, but spending too little is just as bad as spending too much. Why not work with an experienced team like ours to find advertising opportunities and messages to give you the biggest impact for the smallest amount of expense?