Creating an Ad Budget as a small business with a Small Budget
As the year winds down, business owners are beginning to reflect on the past months' achievements and assess what steps they need to take to gear up for another new year. Now is also when many begin to finalize their budgets, consider what stays and what goes, and plan new marketing strategies to ensure they meet their goals for the upcoming year.
One of the marketing strategies that often comes to mind for small business owners is advertising: "Is it worth it?" "Where should we focus our advertising efforts?" "How much return will it provide?" And, most importantly, "Can we afford it, given that we are working on a small business budget?"
Creating an ad budget on a small budget can be challenging and may even come across as impossible for some. However, with the right approach, you can make every dollar count and maximize results without blowing your funds. Below, I share a few tips for creating an ad budget with a small budget for your small business:
1. Have a Plan
One of the biggest mistakes small business owners make is diving into advertising and spending money on any and every advertising vehicle, whether it makes sense for them or not. Unfortunately, this leads to overspending and ultimately wasting money on ineffective avenues.
First and foremost, it is crucial to have a solid plan in place and an idea of how you will spend your dollars before you do it. This includes clearly understanding your target audience, what platforms they use, and what kind of messaging resonates with them.
Secondly, take some time to clearly define your goals and what you expect to get out of advertising. Whether you want to generate more brand awareness, bring in more leads, or increase sales (or all of the above), knowing exactly what your goals are will help you allocate your budget accordingly and prioritize your spending on the platforms and strategies that will give you the best return.
2. Take a Google Ads Course
Google Ads is a popular and powerful tool for small businesses. It can provide a cost-effective way to reach your targeted audience online, drive traffic to your website and/or brick-and-mortar locations, and boost sales. However, Google Ads can also easily be a money pit if you don't use it carefully!
Whether you are just starting out or have previously dipped your toes in advertising in the past, investing your time in a Google Ads course (and there are many free ones out there) can help you learn the essential basics about setting up campaigns, choosing the right keywords, and optimizing your ads to ensure that you get the most bang for your buck. A little time spent on a course can save you a lot of money in the long run!
3. Educate Yourself on the Different Types of Advertising
With the internet and social media taking center stage in today's world, there are many different types of advertising to choose from. But before you dive into it, you'll first want to explore the various options to see which makes the most sense for your small business:
Digital ads allow you to target your message very specifically on social media or popular search engines, ensuring that you spend your advertising dollars reaching the right audience.
Sponsored content can help you promote your products and services while also building your brand authority.
Tourism-based websites are great if your business benefits from out-of-town visitors.
Local radio ads, while often overlooked, can still be super effective, especially if your target audience tunes in regularly (I talk more about this in the next section)!
By educating yourself on the different types of advertising available, you can choose the methods that best align with your small business goals and budget.
4. Don't forget about your local paper and radio!
Believe it or not, print newspapers aren't dead! Your local newspaper is still an excellent way to reach your target audience, but like online ads, it is important to use them wisely. Advertising such as display ads, sponsored content, or special sections can get your message in front of a local audience while still remaining cost-effective.
Newspaper ads are also much more effective for small businesses versus press releases, which may or may not always be picked up. However, if you do choose to use press releases, make sure they are well-crafted and newsworthy. It helps to hire someone who knows how to create an effective one that grabs attention!
As mentioned earlier, local radio ads can also be super effective and powerful for small businesses looking to make a big impact without breaking the bank. Not only do they allow your message to reach your community and potential customers directly in your area, but they often offer flexible pricing and targeted spots, making them an affordable and effective option for businesses working with a tight budget. Here in Summit County, radio ads are very effective!
5. Know When Print Advertising Is (and Isn't) Cost-Effective
While print advertising can be highly effective (especially in niche markets and small, local communities such as Summit County), it can be a double-edged sword for your small business. Print ads often come with higher costs and may not provide the same level of targeting or measurable results as digital ads do.
That said, print advertising is best saved for when you want to reach a particular audience or when there is a local event or offering that aligns with the products and services your small business offers. Otherwise, focusing your budget dollars and time on more affordable and trackable digital options may be best.
At the end of the day, creating an ad budget with a small budget doesn't mean that you have to compromise on effectiveness. (Click here to learn how a small town cafe saved $20K on their marketing!) By planning ahead, educating yourself in the right areas, and being willing to explore the various advertising avenues, you can make the most out of your small budget and still achieve significant results!
Ready to create or refine your advertising budget but don't know where to start? That's what I'm here for! Contact me today for a free 30-minute consultation, and let's get started making the most of your small business advertising dollars!
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