If you know me, you know I love Shark Tank. I especially enjoy Kevin O’Leary. If you watch the show, he always wants to know two things: 1. How did you come to your valuation 2. What is your cost of customer acquisition?
Question #2 infers you are spending money to get your customers. If there is one thing you must understand in marketing, you must spend money to gain customers and get exposure.
“According to the U.S. Small Business Administration, they’ve suggested 7% to 8% of your gross revenue should be spent on marketing. 50% of that marketing budget should be dedicated to digital marketing in 2019. … The average company is spending 35% of their marketing budget on digital campaigns, and that’s not enough.”
SBA January 2020 Report
We are always amazed at parks who are unwilling to spend money on marketing, but expect to be at the top of Google Searches and in everyone’s social media feeds. It just DOES NOT work that way. You must buy your way into the searches and the feeds in order for your ads to be effective. You must have the proper SEO and realize that in markets where many parks are vying for the same keywords, only by paying attention to your marketing and making the right moves and spending the right dollars are you able to achieve your goals.
On average you will see an average of $4 for every $1 spent on digital advertising. This is a good rule of thumb when you determine if your digital marketing spends are working. The good news is, with today’s technology, it is easy to track what is working, where you are getting the most ROI, and adjust accordingly.
Digital advertising is how here to stay and making the most of it by budgeting for it is the most efficient and effective way to get your park on the map.