How to Use a Marketing Budget for Small Businesses

10 Dec 2023 · 1 min

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In this video, the speaker addresses founders who struggle to generate leads despite having a service. He recommends using paid advertising on platforms such as Google, Facebook, or Amazon, but cautions against spreading a limited budget across multiple channels. Using a $3,000 example, he explains that allocating the entire amount to a single platform yields better results because it reduces the time and effort needed to set up and optimize campaigns, and it concentrates data, making it easier to identify effective keywords and audience targeting. Once the single‑platform campaign proves profitable, the business can reinvest a portion of the earnings to expand into additional platforms. The core message is to avoid diluting a small ad budget across too many channels.

Chapters

So you have a service and you're not getting leads. One way to get leads is to use paid ads. You can have paid ads on Google, on Facebook, on Amazon, and other platforms. The mistake that I see founders make is that they take that small budget that they have and they spread it across 3 or 4 different platforms. Let's say you have $3,000. If you have 3 platforms, you're gonna spend $1,000 on each. That's not gonna work as well as if you take the same budget and use it on one platform. Now, why am I saying this? If you have 3 platforms, it's going to take you 3 times as much to set up the campaign on each of these platforms. Second, it's going to take you as much time to optimize each of these campaigns. And third, you'll have more data in one platform so you can improve the performance of that campaign and you'll understand what keyword is working, what audience targeting is working. And once that's working really well and you're getting the revenue, then you can take some of that money and apply it and expand on other platforms. So don't spread yourself too thin.