Courtesy of Roy Williams, The Wizard of Ads. Rather than just taking a set industry percentage or range, this method requires some actual thought, and some research on your part. Here’s the basic point of view:
The purpose of advertising is to increase the exposure of a business beyond what’s provided by its physical location. An extremely high Cost of Occupancy (rent) for a landmark location is often the least expensive advertising available. Businesses who save money by investing in weak locations always have to advertise much more heavily.
Find the calculator here, and an explanation of the thought process here.
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