The four factors that will affect your marketing budget
There are many factors that dictate the growth of a company, but marketing is the one key component you must not neglect. We all know the importance of a marketing budget, but how much do we spend and what factors do you need to consider when setting your budget?
Before we discuss the budget for a physiotherapy practice, we must consider what the successful corporates are spending.
- Marketo– a leading marketing agency spends a whopping 66% on marketing which results in yearly revenue growth of 56%
- Twitter will spends 41% of their $2.53 billion revenue on marketing and have noticed a 111% revenue growth every year
- Linkedin spend 35% of their revenue on marketing and results in 44% revenue growth year by year
- Microsoft corporation spends 18% of their annual $92 billion revenue on marketing
- Google spends 12% of its revenue on marketing ($8.1 billion) resulting in a 19% revenue growth
- Apple spend 7% of their quarterly $78.4 billion revenue on marketing
Now from these figures you may begin to ask why is apple spending less than all the rest and doing so well, apple have spent much more on marketing in earlier days and now the revenue is in the billions and therefore much less is required for marketing as apple makes more in one year than any of the rest do in one quarter.
So how much should we be spending on marketing? For a B2C (business to customer) establishment the average budget is 10.2% but it’s always important to remember that the more you invest the greater is the return.
The quicker you build your brand and make yourself the number one choice, you will stand a better chance against larger competitors with larger budgets.
There are 4 things to consider:
Clinic age and market position
If your clinic is relatively new or you’re starting your first marketing campaign then a budget of 30-40% would be standard for a new company as brand awareness is crucial. This may seem a lot more compared to most organisations but as your market position grows and the company develops the budget can be reduced down to the 10-20% mark.
Why are you marketing?
If you are a new clinic and you are building your brand you will obviously need to spend more but if you are an established practice who has just started acupuncture or any other speciality and you want to raise awareness about it then the budget may not need to be as big. Consider your aims and objectives and base your budget on that. Customer retention campaigns are also inexpensive the 10% budget works well depending on your turnover and target audience.
What is the competition spending?
Consider the budget of your competitors and which mediums are they using for marketing. If you are seeing your competitions adverts and marketing campaigns in action you need to match and exceed that.
Spend can often be calculated depending on the platform used, social media, Google ads and SEO have general prices will take a some legwork to figure it out but it will have you setting your own budget, consult a marketing expert if you need help.
The audience and the platform
Depending on age, demographics, education background and online presence, a marketing campaign will target leads in different ways. If you needed to target the elderly at a certain part of the year you will mainly use Google ads and would therefore have a different budget in comparison to targeting the young sporty generation who are prone to injuries for which social media campaigns are better. Each has their set prices so again if you need some free advice ask a marketing expert.
To discuss how Inbound Marketing can help your physiotherapy practice attract the right type of client who is looking for expertise and quality, speak to our advisors on 0330 133 03635.
brand awareness, competitors, marketing, marketing budget, physiotherapy, physiotherapy clinic