According to a recent survey, companies spend an average of between 8% and 16% of their overall budget on internet marketing. It’s no surprise that people are leveraging the internet to build and boost their brands across all borders by getting well respected internet marketing and/or SEO companies to greatly increase leads and sales. The internet is huge, and the marketing power of it is immense. If we look at how much companies spend on average on their internet marketing, the bigger, well-known brands only spend a small percentage of their revenues, while the smaller businesses tend to spend quite a bit more.
So, why do larger companies spend less and smaller ones more? It’s simple, larger brands have people doing free advertising for them by simple word of mouth, sending links to friends or post in on social networks without being asked to do so. Larger businesses have better reputations in general, that’s why they’re successful, whereas smaller businesses still need to win the respect of their clients and require a bigger internet marketing budget if they are to compete with the big brands. Does that make sense? Sure it does if you think about it.
You need to keep a close eye on your return on investment if you’re just starting out and looking to put your business on the map. Sometimes that amount will far exceed the mere 16% mentioned in the 1st paragraph, and that’s normal if your business is just starting out. You can’t expect to only pay 10-20% of your revenue in the early days and think you’re on par with the established brands, because you need to maximize your internet marketing exponentially in the early days to build a name for yourself and gain some customers.