Running a remodeling business requires more than just great craftsmanship—you need a solid marketing strategy to attract clients and keep your business growing. One of the key components of that strategy is having a clear and actionable marketing budget. But how do you determine how much to spend, and how do you allocate those funds effectively?
At Eviva Media, we recommend that remodeling businesses spend 5-15% of their revenue on marketing, depending on how aggressive they want to be with their growth. In this blog, we’ll guide you through a step-by-step process for creating a marketing budget for your remodeling business that aligns with your business goals and helps you invest in the right areas for success.
Step 1: Determine Your Revenue and Set a Marketing Budget Percentage
The first step in creating a marketing budget for your remodeling business is determining how much revenue your business generates annually. Once you know your revenue, you can calculate the percentage you’re comfortable allocating to marketing.
Here’s how we break it down:
- 5-7% of revenue: This range is suitable for businesses that want to maintain a steady flow of leads without aggressive growth. It covers essential marketing activities, such as maintaining your website, running a few ad campaigns, and staying active on social media.
- 8-10% of revenue: If you want moderate growth and aim to increase your lead generation efforts, you should allocate a bit more toward marketing. This allows you to invest in a mix of advertising, content creation, and lead nurturing activities.
- 11-15% of revenue: For businesses looking to grow quickly and dominate their local market, spending on the higher end of this range is recommended. This budget enables you to run robust advertising campaigns, invest in SEO, create high-quality content, and explore new marketing channels.
Example: If your remodeling business generates $2 million in annual revenue and you want to allocate 10% toward marketing, the marketing budget for your remodeling business would be $200,000 for the year.
Step 2: Define Your Marketing Goals
Before you start allocating your budget, it’s important to define your marketing goals. Are you looking to generate more leads, increase brand awareness, or expand into new markets? Your goals will guide how you spend your marketing dollars.
For remodeling companies, common goals include:
- Lead Generation: Attracting more potential clients through online advertising, content marketing, and SEO.
- Brand Awareness: Increasing visibility in your local market through social media, content, and public relations efforts.
- Client Retention: Staying top-of-mind with past clients through email marketing and follow-up campaigns to encourage repeat business and referrals.
Clearly defining your goals will help you prioritize which marketing activities deserve the most attention in your budget.
Step 3: Identify Key Marketing Channels
With your budget and goals in mind, the next step is identifying the key marketing channels that will help you achieve those goals. Here are some of the most effective channels for remodeling companies and what you can expect to spend on each.
1. Paid Advertising (Google Ads, Facebook Ads)
Paid advertising is a direct way to generate leads by targeting homeowners who are actively searching for remodeling services or have shown interest in home improvement. The cost of paid advertising depends on factors like your targeting, ad spend, and the competitiveness of your market.
- Budget allocation: 25-40% of your marketing budget.
- Why it’s important: Paid ads provide immediate visibility and lead generation. Google Ads is particularly effective because you can target users with high intent (e.g., searching for “kitchen remodel near me”). Facebook Ads allow you to target specific demographics and retarget website visitors.
2. Search Engine Optimization (SEO)
SEO is essential for driving organic traffic to your website and ensuring you rank for relevant keywords in search engines. While SEO is a long-term investment, it can provide a steady stream of high-quality leads over time.
- Budget allocation: 15-25% of your marketing budget.
- Why it’s important: With a solid SEO strategy, your website can rank higher in search results, making it easier for homeowners to find your business when they’re researching remodeling services.
3. Website Development and Maintenance
Your website is the foundation of your online presence. It needs to be optimized for both user experience and lead generation. You may need to invest in website development or ongoing maintenance to ensure your site stays functional and up to date.
- Budget allocation: 10-15% of your marketing budget.
- Why it’s important: A well-designed website not only looks professional but also helps convert visitors into leads by offering clear calls-to-action, forms, and contact options.
4. Content Marketing (Blogs, Videos, Case Studies)
Content marketing builds trust with potential clients by providing them with valuable information about the remodeling process. Blogs, videos, and case studies are excellent tools to showcase your expertise and help homeowners feel confident about choosing your business.
- Budget allocation: 10-20% of your marketing budget.
- Why it’s important: Consistent, high-quality content helps establish your authority and keeps your business top-of-mind when homeowners are ready to remodel. It also supports your SEO efforts by increasing organic search visibility.
5. Social Media Marketing
Social media platforms like Facebook and Instagram are great for showcasing your remodeling projects, engaging with potential clients, and building brand awareness. You can also run paid ad campaigns on social media to reach a wider audience.
- Budget allocation: 5-10% of your marketing budget.
- Why it’s important: Social media allows you to connect with homeowners in a more personal way, share project updates, and build a community around your brand.
6. Email Marketing
Email marketing is a cost-effective way to stay connected with potential clients and nurture leads over time. You can send newsletters, promotional offers, and project updates to keep your business top-of-mind.
- Budget allocation: 5-10% of your marketing budget.
- Why it’s important: Email marketing is an excellent tool for lead nurturing, helping you stay engaged with homeowners until they’re ready to start their remodeling project.
Step 4: Plan for Contingencies and Flexibility
No marketing plan is set in stone, and it’s essential to leave room in your marketing budget for contingencies. Marketing trends change, and certain campaigns may perform better than others. You might find that Google Ads is delivering higher-quality leads than expected, and you want to allocate more budget to it mid-year.
We recommend setting aside 5-10% of the total marketing budget for your remodeling business as a flex fund to adapt to new opportunities or adjust your strategy as needed.
Step 5: Track and Adjust The Marketing Budget for Your Remodeling Business
Once you’ve established the marketing budget for your remodeling business and allocated funds across channels, it’s crucial to track your spending and results. Use analytics tools like Google Analytics, Facebook Ads Manager, or HubSpot to monitor your campaigns and see which channels are driving the most leads and conversions.
By regularly reviewing your performance, you can make data-driven decisions to adjust your budget. For example, if paid ads are delivering a strong return on investment (ROI), you might shift more budget to those campaigns while reducing spending on lower-performing channels.
Tip: Schedule quarterly budget reviews to assess what’s working, what’s not, and where you can make improvements.
How Can We Help
Creating a marketing budget for your remodeling business doesn’t have to be overwhelming. By setting clear goals, allocating a percentage of your revenue, and focusing on the most effective marketing channels, you can build a budget that helps you attract new clients and grow your business.
At Eviva Media, we work closely with remodeling companies to develop customized marketing strategies that align with their goals and budget. Whether you’re looking to launch paid ad campaigns, optimize your website for SEO, or create compelling content, we’re here to help. Contact us today to learn more about how we can help you make the most of your marketing budget and drive real results for your business.
