Is the price right?

Houston expert shares her advice on how much startups should spend on marketing

When it comes to setting up a marketing budget for your startup, considering every angle is important. Getty Images

Industry research suggests spending 5 percent to 12 percent of total revenue on an annual marketing budget. At Integrate Agency, we believe marketing spend should be determined from key data points, versus current size. We shepherd our clients through a five-step process to calculate how much they should spend on marketing to maximize their ROI.

1. Know your goals

You can't manage what you can't measure. Before you start spending, you must first set SMART goals. Challenging, but realistic, short-term goals may include:

  • Sales/revenue growth
  • Customer count
  • Consumer ratings improvement

Integrate updated Delmar Systems' website with the goal of increasing traffic that would generate leads. By having a clear goal at the forefront, Integrate created a conversion-focused website and calculated an ROI for the company (including 631.9 percent increase in new visitors and 23.9 percent increase in qualified leads).

Your goals should set a strong baseline of expectations and establish clear guidelines for the budgeting strategies to reach those goals.

2. Know your data

You can only track your goals, and tweak your spend accordingly, if you have the specific data to tell you what's working and what isn't. Some of our favorite tools include:

  • Google Analytics for visitors, bounce rate, and time on site
  • Site Checker for SEO performance
  • Conductor for content efficacy
  • Sprout Social for social media metrics

One of our clients wanted to increase its qualified leads, but before we added more dollars to the equation, a full audit of the company's digital efforts uncovered significant spend inefficiencies. The data uncovered a new strategy that led to a full revamp of its PPC campaign. This helped them save $8,000 per month and led to a 63.9 percent year-over-year decrease in cost-per-click cost and 42.3 percent year-over-year increase in click through rate.

3. Know your audience

If you have a strong concept of your customer base, you'll know where, when, and how you can best connect with them.

To this end, we are hyper-aware of our clients' seasonality and when their audience is most likely to buy (and for B2B clients, when budget review season is) so we can target their marketing budget accordingly.

Six Flags Hurricane Harbor Splashtown operates on a seasonal basis, by its very nature. Each summer, Integrate focuses on a concentrated marketing approach and last year garnered over 540 million traditional media impressions in just four months.

This activity has ensured they're top-of-mind when it matters most, versus spending dollars when their customers are not considering this purchase.

4. Know your competition

Regardless of market share, it's important to keep up with what competitors are doing. We recommend beginning your competitor research with:

  • SEM Rush for SEO keyword research
  • Majestic SEO for linking statistics
  • Ahrefs for backlink strategy
  • Moz for rank tracking

When Escalante's sought to outmaneuver its competition with digital tactics, Integrate's competitive data revealed that none of its competitors in a specific neighborhood were being overly aggressive online.

By focusing on geo-targeting and ad scheduling to ensure ads displayed to the preferred audience at the right time, the restaurant has been able to capitalize on specific traffic without a large budget.

5. Know your capabilities

A question will often come up about in-house vs. outsourced marketing. In-house gives you maximum control. But, to be most effective with your spend (and often attune to the latest, best-in-class, industry techniques), you must fully commit to your marketing efforts, which an agency, or outside partner, can provide.

As one client — Arthritis Relief Centers — grew, their staff no longer had the time to devote to marketing. By making the decision to work with Integrate, the company had more time to devote to patient care. This led to an over 100 percent increase in clicks to digital ads and a 56 percent decrease in cost-per-click because the client trusted the agency's digital marketing expertise.

The biggest upside to outsourcing your marketing: letting your team focus on servicing customers and improving your products.

As we stated earlier, the experts tell you that your marketing spend should normally live between 5 and 12 percent of your gross revenue, but we believe your marketing budget, and the integrated mix of how that budget is implemented, should be tied to growth needs and goals.

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Allie Danziger is the founder and president of Houston-based Integrate Agency, which focuses on digital marketing and public relations.

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A Rice University scientist will be working on the team for NASA's latest Mars rover. Image courtesy of NASA/JPL-Caltech

A Rice University Martian geologist has been chosen by NASA as one of the 13 scientists who will be working on a new Mars rover.

Perseverance, the rover that launched in July and is expected to land on Mars in February. It will be scouting for samples to bring back to study for ancient microbial life, and Kirsten Siebach — an assistant professor of Earth, Environmental and Planetary Sciences — will be among the researchers to work on the project. Her proposal was one of 119 submitted to NASA for funding, according to a Rice press release.

"Everybody selected to be on the team is expected to put some time into general operations as well as accomplishing their own research," she says in the release. "My co-investigators here at Rice and I will do research to understand the origin of the rocks Perseverance observes, and I will also participate in operating the rover."

It's Kirsten Siebach's second Mars rover mission to work on. Photo courtesy of Rice University

Perseverance is headed for Jezero Crater, a 28-mile-wide area that once hosted a lake and river delta where, according to scientists, microbial life may have existed over 3 billion years ago. Siebach is particularly excited hopefully find fossils existing in atmospheric carbon dioxide dissolved in water — which usually exists as limestone on Earth.

"There are huge packages of limestone all over Earth, but for some reason it's extremely rare on Mars," she says. "This particular landing site includes one of the few orbital detections of carbonate and it appears to have a couple of different units including carbonates within this lake deposit. The carbonates will be a highlight of we're looking for, but we're interested in basically all types of minerals."

Siebach is familiar with rovers — she was a member of the team for NASA's Curiosity rover, which has been exploring Mars since 2012. For this new rover, Siebach knows what to expect.

"Because there is only one rover, the whole team at NASA has to agree about what to look at, or analyze, or where to drive on any given day," Siebach says in the release. "None of the rovers' actions are unilateral decisions. But it is a privilege to be part of the discussion and to get to argue for observations of rocks that will be important to our understanding of Mars for decades."

Siebach and her team — which includes Rice data scientist Yueyang Jiang and mineralogist Gelu Costin — are planning to tap into computational and machine-learning methods to map out minerals and discover evidence for former life on Mars. They will also be using a Planetary Instrument for X-ray Lithochemistry, or PIXL, to analyze the materials.

The return mission isn't expected to return until the early 2030s, so it's a long game for the scientists. However, the samples have the potential to revolutionize what we know about life on Mars with more context than before.

"Occasionally, something hits Mars hard enough to knock a meteorite out, and it lands on Earth," she says in the release. "We have a few of those. But we've never been able to select where a sample came from and to understand its geologic context. So these samples will be revolutionary."

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