The height of the advertising budget depends on several factors, including company size, industry, target group and marketing goals. Here are some guidelines and considerations to help you plan your advertising budget sensibly:
1. General rules of thumb for the advertising budget
- Start-ups & small businesses: 5-10% of turnover
- Established companies: 2-5% of turnover
- Market launch of new products: 10-20% of expected turnover
2. Allocate advertising budget to advertising channels
Depending on the target group and strategy, you should distribute your budget across different channels:
- Online advertising (Google Ads, Social Media): around 30-50%
- Influencer & Content Marketing: around 10-30%
- Print & TV (if relevant): around 10-20%
- Trade fairs, events & sponsoring: around 10-20%
3. Costs for different types of advertising
- Social Media Ads (Facebook, Instagram, LinkedIn): from 500 €/month for initial successes
- Google Ads: around 1-5 €/click, depending on industry and competition
- Influencer Marketing: Micro-Influencer (500-5,000 followers) from 100 €, larger influencers several thousand euros
- TV advertising: from 5,000 € for regional spots, national campaigns cost quickly 50,000 €+
- Print ads: regional newspapers from 500 €, magazines and trade journals more expensive
4. Experiment and optimize
- Start with a smaller budget and test different channels.
- Analyze the results (e.g. click-through rate, conversion rate) and adjust your budget accordingly.
- Scaling: If a campaign is profitable, the budget can be increased