Whether you are the owner of a small business or the director of marketing of a large corporation, it always an imperative to discover ways of how to increase your company’s advertising budget. With increasing competition in the global business arena, organizations and businesses are constantly fighting to win over the minds of consumers. Here are four major reasons why it is imperative to increase your advertising budget for your business.
Creating, sustaining and increasing your company’s brand awareness and recognition is obviously one of the most important reasons why you should constantly strive to increase your advertising budget. With the rise of digital advertising and the proliferation of social media, businesses constantly have to find new and innovative ways to increase their reach into the minds of consumers. More dollars into your advertising budget ultimately means higher brand awareness. If you really can’t make the connection between increasing your investment advertising as a means of increasing your company’s brand awareness, always remember you are also competing with other brands.
Generating new sales is also another strong benefit of increasing your advertising budget. Obviously all businesses want to ensure that their advertising has good ROI. Creating effective advertising campaigns will produce new sales leads, which ultimately convert into sales. More money into an advertising budget in the long run means more sales. Businesses that are willing to spend money on advertising will generally see more sales.
Create Customer Base
With a bigger advertising budget, businesses and organizations can seriously strategize to create and sustain a profitable and loyal customer base. Studies have shown that it costs more to gain a new customer versus keeping a current one. This goes back to the classic 80/20 rule in marketing. 80 percent of a company’s sales will come from 20 percent of a brand-loyal and satisfied customer who constantly buys products and services. This year, you should examine ways of how to stretch and increase advertising dollars to create a loyalty rewards program.
Another final and yet compelling reason why it’s time to increase your advertising budget is to gain and maintain an edge over your competitors. You better believe that your competitors are utilizing the latest and greatest advertising and marketing tools to promote their products and services. This is the mindset you should have. With that being said, gaining market share, weeding out competitors and dominating your industry should be ample reasons enough to increase your advertising budget.
There are many more reasons why you should increase your advertising budget. In the end, the point taken is that it never hurts to figure out ways how to pump more dollars into your company’s marketing and advertising. Whether you are looking to buy television ad space or looking to roll out a new website, more advertising dollars will pay off in the long run to build a powerful and profitable business. More advertising means more money.