What percentage should advertising be from sales?

What percentage range should advertising of a product be compared with its sales?

What percentage should advertising be from sales?
First of all do a SWOT analysis and assess your company versus others in the market. If it is highly competitive then you need to increase advertising spend to improve your market share position. Ideally, it should not exceed 5% of your total sales. More importantly, you should also assess the impact of your campaign. was it effective? did it improve your market share position? if not you are throwing good money out the window. I strongly suggest that you source a good AD agency that has a proven track record before you try and look for a cheap one. In the end you improve the likelyhood. All the best.
Reply:5% - 10% if you want to be successful.
Reply:In the early growth stage of a new/newer business it may be as high as 9-10%. In an established business, 3-5% may be adequate.





Thirty years ago, when I was a store manager for Radio Shack (at the time when it was going through its massive growth stage from 9 to 8,000 stores!), the company committed 9% of sales to advertising.





Best wishes and good luck!
Reply:5% for growth of share.


2% to maintain hold of market share.





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A % of desired gross sales is good for a new business or a business in trouble.
Reply:For some businesses: zero. Advertising agencies are notoriously difficult to pin down on proof of return on investment. Only do it if there is no better route to market.
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Reply:I use to work for a chain of do it yourself stores, and get the 2% of sales, all depends on the product, competition and sales, I think

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