Allocating your Advertising Dollars

How you should spend your businesses money?

I have been expanding the search engine optimization portion of this blog for a few days now.  I hope these short tutorials have been useful in your business.  Today I want to touch on how your business should tie together the SEO portion of your website marketing/business marketing with the rest of your campaigns. In order to do this I am including a handy visual aide that will show how your advertising dollar should be applied.

There are three main areas of marketing that concern the business owner:


The first is the standard advertisement your business has always paid for but now also extends to the web.  This includes ad placement on websites and other forms of digital marketing that are tied to your radio, television, print, and other resources.  About 30% of your marketing dollar should be concentrated on traditional paid media and Internet advertising.

The second comes in a variety of forms and this is your Owned Media which includes your website, email list, building signs, menus, and other resources such as advertising on your automobiles, windows, uniforms, etc.  This should also consume about 30% of your advertising budget and be very closely linked to your brand-identity.

The final expense category is Earned Media.  For most website owners this may appear to only represent your website and not cost any more than the development free and hosting but I want you to consider the word “Organic” in the picture above for a moment.  An organic listing is a link to your web page that is free to you.  These are provided by search engines like Google, Bing, Yahoo, and all the rest.  So the big question is, if it is free what is the last 30% of my budget being used for?

This “organic marketing” is the core of your marketing campaign.  This is where you will invest the most time and effort after you have a website or web page.  It is for your blog, the person that writes your blog, even if it is you, and for the time it takes to post on websites like LinkedIn, Quora, Facebook, Twitter, Pinterest, StumbleUpon, Yelp, and the rest of social media and it also includes researching other media to make your website more public.  Someone needs to be paid to do these things and that person should be a professional.

There are many websites, over 644 million right now, so how you budget your advertising is important and how you spend that money is more important.  Don’t neglect the customary channels you have always used, instead adjust your allocation of dollars leaving yourself 10% in reserve to cover overlapping areas.  It is good to sit down with someone and work out a plan for your advertising dollars but most small businesses tend to fly by the “seat of their pants” so it is doubtful they will make such a plan.  Just keep in mind when you spend one dollar in one area you should follow up with two dollars in the others.

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