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How much do you spend on advertising?
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How much do you spend on advertising?

Just out of curiosity I was wondering how much other providers spend on advertising, lets say on a monthly basis? Whats a typical ROI for your advertising budget? I'm not asking actual numbers but rather a ballpark estimate.

Comments

  • "10-15% of revenue" and "it depends" is what I've seen from the hundred other threads that ask the exact same question.

  • MikePTMikePT Moderator, Patron Provider, Veteran
    edited October 2015

    It depends your Marketing Strategy, Investment and ROI you wish to achieve.
    DO invested a lot in their Marketing, and still do, their ROI is probably a few years, they will, however, certainly achieve it. They had a pretty aggressive Marketing Strategy to get them a huge customer base, hence why they gave a lot of credit, then Google Adwords, Facebook and all that.
    In this case, they put a few hundreds of thousands, if not millions, in their Marketing Campaign. Aggressive Marketing strategies are usually implemented when the companies need a fast-growing client base, even if it's a loss in the beginning, it will be worth in the coming months/years.

    If you have an established business, then your best Marketing Strategy would be to provide something different.
    E.g: Cloud Solutions with fancy panels, similar to DO, work very well, and you may invest in Facebook, Google Adwords and such to promote it afterwards (IT forums are also a great niche).

    As I mentioned, it all depends. it takes time to fully develop a Marketing Strategy. There is a lot of Marketing involved. It is, obviously, pretty much easier if you have enough budget for Marketing. When you have money/investors/investment companies funding, everything is possible.

    Now if you don't have a nice budget, offer something unique. If you have a programmer, I'd say that, providing something unique, as a custom panel with options similar to DO, will get you a lot of clients. If you have a premium network, it will help a lot as well. All this attracts new clients, and existing clients will expand their server list with you (don't forget support/SLA!).

    Do not try to compete with huge providers, though, just try to be different. There's still room in the big providers list, but it takes time.

    I'm not sure if I explained you properly, but it's 6 am and I'm tired. You're free to PM me if you need any help. Feel free to ask any other questions you may have. In this case, there aren't "numbers" we can provide you, as there are may factors in a Marketing Strategy.

  • Jonchun said: hundred other threads that ask the exact same question.

    Sorry to ask again, though things change, different people have different opinions and so-on. It was really just a spur of the moment question that came to mind as I'm not really in the market yet for advertising. Right now I'm doing fine with LET and (I hate to say it) WHT though I don't keep up with forums as much as I want to, I do like to post helpful questions, opinions, and solutions when I see something that I can provide a beneficial post to and sometimes I don't search beforehand (even though I should).

  • In time or ad spend? Which leads to: what is your or your employee's time is worth?

    You might be able to dump a ton of cash into ad spend and see success without a ton of time invested (ie. handing it off to someone else to run). Or if you're starting out and you own the company, you can choose to invest a ton of time in free/cheap advertising methods and not drop much on spend.

  • Advertising marketing strategy should consider the right target audience, right timing and industry behavior. The ad spending is depend on demand time to time.

  • This month, 34% of profit.

  • VirMachVirMach Member, Patron Provider

    Advertising ends up being about 5-10% of our total costs.

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