Advertising Information Ohio

HOME

DIRECTORY

 

More free ebooks online:
 
Advertising | Affiliate revenue sharing  |  Auctions  |  Blogging  |  Crafts & Hobbies  |  Currency Trading  |  Home Remedies and Best Tips |  Mesothelioma lung cancer and asbestos |  Mortgage and refinance |  Pets  |  Web Site design  |

We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
Please check back frequently as new topics are added and current topics are updated daily.

 

Place your TextLink AD here free

How Much Money Do I Need to Spend on Advertising?


Q: I've never really done much advertising for my business; I've always relied on networking and word-of-mouth. Now I'd like to launch a small campaign, but I'm frightened it will cost a lot of money. How can I figure out where to start?

A: The first thing you must do is calculate your minimum and maximum allowable ad budgets:

· Step 1: Take 10 percent and 12 percent of your projected annual, gross sales and multiply each by the markup made on your average transaction. In this first step, it's important to remember that we're talking about gross markup here, not margin. Markup is gross profit above cost, expressed as a percentage of cost. Margin is gross profit expressed as a percentage of the selling price. Sell an item for $150 when it only costs you $100, and your markup is 50 percent. Your margin, however, is only 33.3 percent. This is because the same $50 gross profit represents 50 percent of your cost (markup,) but only 33.3 percent of the selling price (margin.) Most retail stores in America (carpet, jewelry and so on) operate on an average markup of approximately 100 percent, some operate on as little as 50 percent markup and others add as much as 200. More expensive items, such as cars, recreational vehicles and houses, typically carry a markup of only 10 to 15 percent.

· Step 2: Deduct your annual cost of occupancy (rent) from the adjusted 10 percent of sales number and the adjusted 12 percent number.

· Step 3: The remaining balances represent your minimum and maximum allowable ad budgets for the year. At this point in the calculation, you may learn that you've already spent your ad budget on expensive rent, or you might also learn that you should be doing a lot more advertising than you had previously suspected.

Now let's calculate an ad budget. Assume that my business is projected to do $1 million in sales this year, I have a profit margin of 48 percent, and my rent is $36,000 per year. The first thing to do is calculate 10 percent of sales and 12 percent of sales ($100,000 and $120,000, respectively).

Second, we must convert my 48 percent profit margin into markup, because markup is what we've got to have to make this formula work. Most business owners know their margin by heart, but never their markup. To make the conversion from margin to markup, simply divide gross profits by cost. Dividing $480,000 (gross profits) by $520,000 (hard cost) shows us that a 48 percent margin represents a markup of 92.3 percent. Bingo.

Now we multiply $100,000 times 92.3 percent to see that our adjusted low budget for total cost of exposure is $92,300. Likewise, we multiply $120,000 times 92.3 percent to get an adjusted high budget for total cost of exposure of $110,760. From each of these two budgets, we must now deduct our $36,000 rent. This leaves us with a correctly calculated ad budget that ranges from $56,300 on the low side to a maximum of $74,760 on the high side.

Most advertising salespeople will tell you that "5 to 7 percent of gross sales" is the correct amount to budget for advertising, but don't you believe it. It simply isn't possible to designate a percentage of gross sales for advertising without taking into consideration the markup on your average sale and your rent. Yes, expensive rent for a high-visibility location is often the best advertising your money can buy, since a business with a good sign in a high-visibility location will need to advertise significantly less than a similar business in an affordable location.

To prove this, just look at the example above and change the rent to $75,000 per year. In this case, the ad budget would range from $17,300 to $35,760, representing just 1.7 to 3.5 percent of sales. The formula I've given you is the only one that reconciles your ad budget with your rent as well as the profitability of your average sale. Good luck!

Steve Moundzouris, 423-653-2201 BigWater Media Group, Bigwater Media Group is a full service advertising and marketing agency.

http://www.bigwatermg.com


Todays News by officejax free advertising and ad exchange solutionsMORE RESOURCES updated Sun. July / 22 / 2018

This RSS feed URL is deprecated
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

What you need to know in advertising today - Business Insider

Business Insider

What you need to know in advertising today
Business Insider
That's according to a new report from BuzzFeed News, which also says Facebook internally views the Trump campaign as an advertising "innovator." In fact, internal documents at Facebook show that its own marketing strategy was influenced by what it ...


Why Blockchain Could Be The Downfall Of YouTube Advertising - Forbes

Forbes

Why Blockchain Could Be The Downfall Of YouTube Advertising
Forbes
With recent announcements showing that teenagers are now watching an hour a day of YouTube, you might think that this is huge news for the advertising industry. A captive audience stuck between ad breaks should be every advertiser's dream yet instead, ...


Northcraft, Miller take on new advertising roles - Marietta Times

Marietta Times

Northcraft, Miller take on new advertising roles
Marietta Times
Northcraft started in advertising with the newspapers' parent company in 1997 as an ad representative with the Tyler Star News before becoming the advertising manager of the Star News and the Wetzel Chronicle. In 2006, The Green Tab was added under ...


Staff made the right call in advertising imbroglio - Chilkat Valley News

Staff made the right call in advertising imbroglio
Chilkat Valley News
Standing on the back deck of the F/V Wildfish in Bristol Bay last week, CVN advertising director Jasmine Taylor told me she was cutting out marijuana advertisements out of 300 odd editions of last week's CVN after staff from the post office warn... For ...


Amazon to give Facebook, Google run for their money in advertising ... - Business Insider

Business Insider

Amazon to give Facebook, Google run for their money in advertising ...
Business Insider
BI PRIME: Amazon may be one of the quietest companies in the world, but marketers can't stop talking about the company's advertising business that's full of ...

and more »

Democrats place false advertising | Letters to the Editor ... - Bismarck Tribune

Democrats place false advertising | Letters to the Editor ...
Bismarck Tribune
The Senate Majority PAC recently released a TV advertisement against Kevin Cramer. Within the ad, Cramer allegedly supported cutting Social Security and ...

and more »

New advertising leader onboard - Marshfield Mail

Marshfield Mail

New advertising leader onboard
Marshfield Mail
Earlier this decade, Honeycutt was advertising director and eventually publisher for newspapers in the Tulsa area that were under common ownership with the five papers he now joins. He and the advertising executives for the Missouri papers already know ...


Advertising Groups Face a Costly Fight To Regain Trust - Wall Street Journal

Financial Times

Advertising Groups Face a Costly Fight To Regain Trust
Wall Street Journal
In response to advertisers' complaints, Twitter last week purged millions of fake followers. Unilever , the world's second-largest marketer after Procter & Gamble , said alongside results Thursday that it stepped up spending on ads in the half-year ...
Advertising group Publicis sees shares fall 9% on sales drop ...Financial Times

all 44 news articles »

Amazon advertising is working directly with brands now, cutting out ad agencies - Digiday

Amazon advertising is working directly with brands now, cutting out ad agencies
Digiday
Amazon is increasingly working directly with brands on advertising deals. Amazon has always had a robust direct line to brands via an application programming interface for Amazon Marketing Services, the part of its ad business that includes self-serve ...


How AI Is Making Advertising More Efficient and Consumer-Focused - Adweek

Adweek

How AI Is Making Advertising More Efficient and Consumer-Focused
Adweek
In this war, they are little more than innocent bystanders forced to wade through disingenuous attempts at engagement and bombarded with disruptive advertising that serve little purpose other than getting in the way of the content they actually want to ...


Google News

              used office cubicle and partitions walls for sale in Northeast Ohio   free amv format video downloads   amv format video downloads   amv format videos

Find custom outdoor advertising supplies and business supplies in Akron, Ohio below wholesale at OfficeJax in Akron, Ohio

Auctions Akron, Ohio    Blogging Ohio    Rss Ohio    Crafts & Hobbies Akron Ohio    Currency Trading in Akron Ohio
   Mortgage and refinance   Pets Akron Ohio    Web Site designers in Akron Ohio   university of akron university housing available

roofing contractors Akron Ohio

Surplus Overstock and used PET SUPPLIES

Find unclaimed freight in Akron Ohio

[Back to Top]

Find used office equipment in Ohio at www.OfficeJax.Has.It

Find the best fleamarkets at www.FleaMarketWorld.Has.It

www.Akron.Has.It

Find electric powered vehicles at www.NoGas.Drives.It

Akron City directory

Free Automatic Link Exchange

Flea Market World

Anonymous and Confidential U.S. Mail Drops - No ID Required reship worldwide

Find homes for rent
in Akron Ohio
www.homes4rent.has.it

Fleamarket World
www.fleamarkets.tk

Jim (James) Baughman Hosting Company of Akron, Ohio offers the finest in the CLOUD internet hosting  service and solutions at affordable prices. The Hepsia control panel is a superior control panel unlike the old school cpanel you may be familiar with as well as downloadable daily backups, 24 hour tech support response time is less than 30 minutes, php version selection, unlimited bandwidth, are all included at no additional cost.

Click here to place your free classified AD's on this page for freeHere
 

officejax surplus office furniture outlet Akron, ohio

OfficeJax free ad space available here

auction news and listings for Akron, Ohio

Akron crafts and hobby news center

Akron currency trading

Akron Ohio pet news

Advertising and promotions Akron, Ohio

The Akron blogging news center

lung mesothelioma asbestos

Akron Ohio web site design news

Akron Mortgaging and refinancing

Best Home Remedies and Tips

HOME | Site Map
© 2012 - 2018 All Rights Reserved


  

advertising agency advertising supply and services marketing and advertising internet advertising pay per click advertising newspaper advertising promotion online advertising free advertising business marketing and advertising promotional advertising specialty print advertising banner advertising agency promotional product advertising radio advertising company classified advertising web advertising outdoor advertising ppc advertising advertising agency and services local advertising art layout production service advertising direct internet marketing advertising web site advertising business advertising television advertising jobs advertising services restaurant advertising yellow page advertising agency tv advertising web banner advertising directory advertising services  advertising slogan advertising photographer adsense advertising adwords apis cashing billboard advertising advertising balloon pay per click banner advertising gambling online magazine advertising yahoo advertising email advertising free internet advertising internet online marketing advertising business search engine advertising direct mail advertising services advertising design advertising age creative advertising targeted advertising advertising campaign media advertising career free online advertising mobile advertising ogilvy vintage advertising pen internet advertising agency car advertising subliminal advertising idea advertising and marketing employment cheap advertising pen advertising space  online advertising company advertising sign career in advertising direct mail advertising small business advertising history of advertising internet marketing online advertising advertising card communication content integrated marketing perspective premium promotion internet banner advertising advertising outdoor billboard affiliate advertising advertising art advertising display advertising product advertising copy advertising affiliate program free web site advertising real estate advertising brand advertising advertising brand communication guerrilla unconventional advertising business internet online internet marketing promotion advertising advertising firm contemporary advertising coroplast akron ohio custom signs and advertising solutions at OfficeJax online flea market