What You May Not Know About a Marketing Budget
Laurel Mintz, CEO and founder of Elevate My Brand, began the agency in 2009 to help businesses gain attention and exposure in their niche markets. Mintz shares how businesses, like dealerships, can properly go into creating a marketing budget and not be blindsided by how the process works.
"You have to be clear on your comfort level before we or another agency can tell you how to use that across multiple marketing levels," Mintz says in reference to the amount of money that should go into the dealership's marketing budget.
There is no set amount that a marketing expert can recommend a business use for a marketing budget because the budget depends on how much the business projects to make in gross profit or projected gross spending for the year.
- Use your available resources. Mintz says a dealership should keep anyone that is already working on some aspect of marketing and not to allocate that money to an outside agency or expert. If someone is handling the social media for the company, for example, then that is a good thing and should be kept the same, she says. The agency can then come in and help the business with forming a PR campaign or another type of detailed marketing campaign.
- Set KPIS or goals to hit. While Mintz says there are a million different KPIs that a dealership can look into tracking, she says some that they should focus on are clicks to web and web conversions. These KPIs will show where marketing is driving people and how they can capture those people.
- Pull back on spending on Google adwords and social advertising. The company can be spending money on Google adwords but they could be simply bouncing back and not converting, Mintz says. Conversion is important because in the dealership industry, price points are much higher than buying a computer cord or a Kit Kat. The dealership is dealing with higher touch point items like a car and all the digital adwords or social ads are ways to get in front of customers. So, when the customers are ready to make a money decision, they have the dealership at the top of their mind.
"We tell clients it takes six to 12 months or even 18 months to maximize the conversion strategy," Mintz says.
In forming a marketing budget, visibility and awareness come first and then conversion comes after.
"Give it at least a good six months," she says. "Especially for dealerships because they're in a saturated market and there is a lot of noise so they need time to get results."