Companies often wonder how much money they should spend on advertising. Because companies vary so much in size and marketingmarketing-goals philosophy, it’s hard to make meaningful comparisons. For instance, Walmart may only spend 0.4 percent of their budget on advertising, but that’s going to be a whole lot more money than a 10-person shop spending 20 percent. In August 2011 CMO Survey reported that companies spend, on average, approximately 10% of their overall budgets on marketing.


More important than what companies spend, is the question of why they spend money on marketing. Why do you spend money on marketing? What’s your goal?


Some companies focus a lot of their marketing efforts on building brand—and that’s important. You want customers and clients to have a clear image of who you are and what you do. It’s not, however, your main goal.


What is your real goal in marketing your business? You want to engage potential customers and clients (the people for whom your products and services are designed) in such a way that will examine your products and services—and ultimately make a decision to purchase from you. Marketing’s primary goal is to generate qualified leads—the kind of leads that generate sales.


So what kind of marketing efforts bring in qualified leads? According to HubSpot, 63 percent of companies claim that social media has increased their marketing effectiveness. Here’s how they back up that claim:

  • B2B businesses who blogged just 16 to 20 times per month got 3 times more leads than those who didn’t blog. B2C businesses who blogged just 16 to 20 times per month got over 4 times more leads than those who didn’t blog.

  • Businesses with over 200 total blog articles got 3.5 times more leads than those with under 20 blog posts.

  • Businesses with websites that have 401 to 1,000 webpages have 6 times more leads than those with 51 to 100.

  • Businesses with 31 to 40 landing pages got 7 times more leads than those with only 1 to 5 landing pages.

  • They cite similar data for companies using other social media tools such as Facebook and Twitter.


Where are you focusing your marketing efforts? Are you polishing your image or are you generating qualified leads that will result in sales? We’d love to help you work on marketing that brings you the results you need. Shoot us a note about any questions you have regarding marketing that generates leads and we’ll help you reach your goal.

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