Local Business Recommended Marketing Spend Calculator

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Lead Source

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Lead ID

Current Annual Gross Revenue*

Desired Growth Rate (%)*

Please enter a number from 1 to 500.

To double your revenue, enter ‘100’

Desired Revenue

Desired Revenue Increase

Market Competitiveness*

Mild

Medium

Hot

Business Stage*

Newer

Established

Market Leader

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Recommended Annual Marketing Spend

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Recommended Monthly Marketing Spend

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Results*

<ul>
 	<li>Current annual revenue: </li>
 	<li>Desired growth: +% (+)</li>
 	<li>Desired annual revenue: </li>
</ul>
<h1>Recommended total annual marketing spend: ( monthly average)</h1>
This calculation was influenced by the Small Business Administration’s (SBA) <a href=”https://www.sba.gov/taxonomy/term/15051?page=37″ target=”_blank” rel=”noopener”>recommendations</a> for businesses with less than $5 million in annual revenue with a gross profit margin of at least 12%.

What do you think of this number – about right? shockingly high?
Well, that’s what we’re here for – to educate you so you can improve your business. It’s actually in line with research (i.e. businesses like yours, possibly your direct competitors) and could even be a little conservative.
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<h2>Want even more details?</h2>
<a href=”https://www.gartner.com/en/marketing/research/the-annual-cmo-spend-survey-2020-part1″ target=”_blank” rel=”noopener”>Research from Gartner</a> reveals that even large corporations set marketing budgets based on gross revenue, averaging 11.1% from 2014 to 2020, with 68% planning to increase their spending on marketing technology and allocating 59% of their total marketing budget toward owned and digital channels such as social marketing, the website, SEO, and mobile marketing.

These numbers are confirmed by <a href=”https://cmosurvey.org/results/” target=”_blank” rel=”noopener”>The CMO Survey</a> (research performed by Duke University, funded by Deloitte), which includes data specific to B2C Service businesses.

Now you’re wondering, “Would I spend all that just on Facebook ads?” Ha, no way!

Marketing’s budget may be allocated to various endeavors:
<ul>
 	<li>market penetration (existing offerings into existing markets)</li>
 	<li>product/service development (new offerings into existing markets)</li>
 	<li>market development (existing offerings into new markets)</li>
 	<li>diversification (new offerings into new markets)</li>
</ul>
Depending on your business’ stage and goals, your marketing spend might be allocated to these areas:
<ul>
 	<li>Strategy: the “Ps of the Marketing Mix”, market research, competitive research, branding/re-branding, quarterly planning and prioritizing, determining and evaluating Objectives and Key Results (OKRs), customer journey mapping, pricing</li>
 	<li>Website: initial build or redesign, speed optimization, analytics and pixels, blogging and content marketing, user experience (UX), conversion rate optimization (CRO), search engine optimization (SEO)</li>
 	<li>Advertising: pay-per-click advertising (PPC), retargeting, promotional pricing, buying leads (e.g. HomeAdvisor), and more</li>
 	<li>Technology: implement, integrate, automate, aggregate, analyze, dashboard, call tracking, database cleansing</li>
 	<li>Relationships: personalization, social media, soliciting and replying to online ratings and reviews, phone check-ins, email newsletter, networking group memberships, in-person and virtual events, podcasts, loyalty programs</li>
 	<li>Print: business cards, brochures, fliers, coupons, gift cards, promotional/giveaway items</li>
 	<li>Traditional/Offline: cold calling, billboards, partnerships and sponsorships, direct mail, win-back/reminder postcards, building signage, media buying (TV, radio)</li>
 	<li>Training: documentation, talent/skill development, innovate, internal feedback loop, customer experience (CX)</li>
</ul>
We help local service businesses determine their marketing plans and can implement pretty much any of your marketing needs.

Contact us with any questions, and we’d be glad to help!

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