How much should you spend on Google Advertising in particular? Find out what factors to consider before spending on digital marketing in this episode.
Erik J. Olson (00:01):
How much should you spend on digital marketing? What is happening? This is Erik J. Olson, your host today for the journey two, 100 million podcast. So I get this question a lot so often that I actually posted an article on our firstname.lastname@example.org slash pricing. So how much should you spend on Google advertising in particular? Let’s talk about that or digital marketing, right? So there’s lots of different factors. So it’s, you know, like here, here, here’s the, the short answer. It depends. I bet you didn’t wanna hear that answer because that’s probably what you expected. It’s complicated, right? And I’m not saying it’s complicated because our pricing is complicated or because any digital marketer is trying to milk you for the most. They can. No, it’s complicated because there’s so many variables, right? So first of all, what is the state of your business? Here’s an example. I got approached by someone who has a hair, a hair care product.
Erik J. Olson (00:58):
And she asked me for advice. Well, guess what? As a digital marketer, I would’ve loved to be like, oh, you need to run ads. You need a new website. Uh, we’re gonna do SEO free. We’re gonna write 20,000 words a month. Uh, we’re gonna get back links, uh, blah, blah, blah, blah, blah, blah, blah, blah, blah. But the reality is she’s in a startup mode. Like she’s only sold this product to her friends and family. She doesn’t have the money for her. She doesn’t have the infrastructure to support all that. She can’t even give us like, like she’s not advanced enough. And so for her, like, I need to take into consideration where she is in her business. She’s a startup like, and like, you know, from home one person show part-time startup. So I can only recommend so much for her. Yes. If, if she had unlimited dollars in an unlimited budget, I would be like, yeah, let’s do all this crap.
Erik J. Olson (01:44):
It’s gonna be amazing. And it would be, but the reality is she can’t afford it. Right. And no matter how much, I believe that she needs that or that it’s gonna benefit her business. I, I know that it’s just not in the cars and by the way, because of that, I don’t believe it. Right. So here’s what I actually told her. All right. What I want you to do first and foremost, forget about a website, right? You’re not gonna hear me say that very often, but this is how early she is in the process. And my recommendation was you have 809 followers on your Facebook, your personal Facebook. You need to maximize that network. So, number one, I want you to put a better profile picture up there because I can barely see your face. It’s so like grainy. And then number two, I want you to start posting about your hair care product on your Facebook and get all 809 of your friends to know that you do this and you need to post probably three times a week about your product. And you need to post another three, two to three times a week about other stuff, personal stuff, but you gotta start posting more maximize your network. That’s the best bang for her buck or in this case, the best bang for her time. Now let’s say fast forward 10 years, and she’s just killing it. Right? And,
Erik J. Olson (02:58):
And now wants to take it to the next level. Let’s say she’s a million or $2 million a year business, maybe more, maybe 5 million, right? If that same person came to me with the exact same product, I would have completely different recommendations. Why? Because she has an actual business with infrastructure and people and production capabilities and the wherewithal to be able to support a much bigger campaign. So for her 10 years from now, the recommendation is gonna be what I said before. Uh, we’re gonna create a brand new website for you. It’s gonna be mobile friendly. It’s gonna be fast. It’s gonna be secure. Uh, not only Facebook, we’re gonna do Instagram. We’re gonna do TikTok. Uh, we’re gonna have a film crew show up once a week. Uh, we’re gonna write 20,000, 30,000 words a month for you so that you can just pop to the top of the Google organic search results, blah, blah, blah, blah, blah, totally different recommendation, same person, same product, because her company is in a different place.
Erik J. Olson (03:53):
So take that in consideration. When you need to think about what you should spend on marketing, it has to be appropriate, frankly, for where you are in business. Now I’m not saying like, don’t spend the money, cuz if you don’t spend money on marketing and advertising, I mean, what kind of a business are, you let’s get real. You should probably spend more frankly than you’re comfortable with because that’s the only way that people find out who you are once you’ve okay. Let me back up once you’ve saturated your network of people, which you should always do once you’ve gone out and you’ve, you’ve told your entire network, now it’s time to get beyond your network. Okay? So that that’s, that’s based on the size of the company. Other things like Google advertising, digital marketing in general, how much should it cost? Uh, like there’s lots of different ways you can like slice and dices.
Erik J. Olson (04:47):
You can hire people in house there’s pros and cons there pro is, if you don’t really know what needs to be done, the person is gonna be in house and they can hopefully kind of help you figure it out. Um, ton is that they’re expensive and they come with one skillset, right? They may be a social media person, but they don’t know Italy about building a website. They don’t know. They don’t even know what SEO stands for and uh, advertising. Uh, you might as well just flush dollar bills down the toilet. If they don’t know how to do that. And you have them do it, they come with one skillset and one skillset alone. So with an agency like ours, you’re hiring fractionally from lots of different roles. So, uh, it could cost hundreds. It could cost thousand. It could cost tens of thousand dollars. And this is where another part of the, it depends comes into play, right? So where are you at? What’s your geography? What’s your target market? What’s the competition like loss and loss of factors to consider. If you have questions about this, you can check out a full length article that I wrote that is on this is array.com/pricing. It will give you all of those parameters so that you can make an educated choice, not waste money, but continue to grow your business through marketing and advertising.