When it comes to organic reach and connecting with prospects or potential customers, many small-business owners believe that ad spend is not a matter of if they need it, but when they should invest in it. This isn’t always the case. There are many entrepreneurs who strictly use organic reach to connect with prospects, and can then reinvest the money that they would spend on ads back into their business.
This can certainly add up. Libby Bierman, an analyst at SageWorks, reported in an article for Small Business Trends that the average company allocates about 1 percent of their annual revenue on ad spend. “It may not sound like a significant expense,” she commented in the article, “but the rate has been steady for the past few years.”