2018 Marketing Strategies for Construction Companies: A Numbers Breakdown
As a company working in the construction sector, you have unique needs. We work hard to ensure that we can handle all of your construction supply needs in Southern California. That said, we also understand that there are many other needs your company has. After working in this business for decades, and keeping up on the latest marketing ideas and numbers, we’ve come up with a specific breakdown of a marketing budget for California construction companies.
Note that this isn’t a plan that will work for 100% of companies. Just like every job site needs connectors, but doesn’t need the same ones, what works best for your company may be a variation of what follows. If you have further questions about how to get the best products for your job sites, please reach out to Grove Hardware at 909-544-4331 right away.
Your total marketing spend should be about 1 percent of your projected revenue for 2018
First of all, let’s discuss who much you should spend in total. Not every company will come in at exactly 1% of their projected revenue, but if you’re spending less than .07% you’re not investing enough, and if you’re spending more than 1.5% then you’re wasting cash.
At least half of your marketing budget should go toward online marketing
Most of your marketing money should be spent online. This includes all online ads, costs of developing your website, and all content on your website. Within this half, spend about half on advertising, one-quarter on web development, and about one-quarter on content.
Signs should make up between 12 – 20 percent
Your signs represent your brand. If they’re faded and in ill repair, then that’s going to reflect badly on your company. You want to communicate to potential clients that your company is innovative and fresh. Outdated and damaged signs indicate that you may not even be in business anymore.
Spend about 5 – 8 percent at events
In person events are still a great way to find clients. If you’re building a development, find unique ways to get people into the model home. This could include holding a pet adoption day, a custom appreciation night, or even a charity auction.
2 – 6 percent should be spent on collateral
Yes, there are some people who are going to want to see every flyer in writing. But there are many, many more people who want access to facts and figures on their phones, computers, etc. This requires time and effort and it must be updated regularly. Plan for those costs.
Spend 16 percent on whatever else you’d like
That leaves you with about 16 percent of your marketing budget left. You can use this at your discretion, perhaps for direct mailers, gifts for real estate agents, etc. We don’t recommend investing in either TV or radio advertising, unless your marketing budget is in excess of $1 million. The cost of buying ad time is simply too high compared to the return.
