Need More High Quality Leads?

How Much Should a Siding Company Spend on Marketing & Advertising in 2024?

In the competitive industry of home exteriors, superior marketing is crucial. How much should a siding company spend on marketing and advertising in 2024?

In the competitive arena of the home improvement industry, effective marketing and advertising strategies are crucial for business growth and sustainability, particularly for siding companies. Determining the appropriate budget allocation for marketing endeavors can be a challenging task, especially in a dynamic environment like 2024.

Determining your marketing budget is a critical step for construction companies aiming for growth. How much should you invest in marketing and advertising? According to the United States Small Business Association (SBA), companies with revenue under $5 million typically allocate 7-8% of their revenue to marketing. However, this percentage varies across industries. For example, remodeling companies may find that 3-5% of their revenue suffices for marketing expenses. On the other hand, companies in specialty trades might need to allocate a slightly higher percentage, ranging from 8-12%. In this blog, we'll provide insights into optimizing your marketing budget to drive growth effectively. 

How Much Should a Siding Company Spend on Marketing & Advertising in 2024?

Understanding the Market Landscape

Before delving into budget allocation, it's vital to grasp the current market landscape. In 2024, the construction industry is witnessing significant shifts influenced by various factors such as technological advancements, changing consumer preferences, and economic fluctuations. The SBA holds that the construction industry contributes over $1.4 trillion to the U.S. economy annually, making it a vital sector for economic growth.

Moreover, the construction industry's growth is anticipated to continue, driven by factors such as population growth, urbanization, and infrastructure development. This presents both opportunities and challenges for siding companies, as they must navigate a dynamic market landscape characterized by evolving consumer demands and technological innovations.

Factors Influencing Marketing Budgets

1. Industry Competition: The level of competition within the siding industry directly impacts marketing budgets. According to the SBA, there are over 700,000 construction companies in the United States, highlighting the fierce competition within the industry. In a highly competitive market, companies may need to allocate more resources to stand out and capture market share. "In a crowded marketplace, fitting in is a failure. In a busy marketplace, not standing out is the same as being invisible," says Seth Godin, renowned marketing expert.

To differentiate themselves in a crowded marketplace, siding companies must identify their unique value proposition and effectively communicate it to their target audience. This may involve highlighting factors such as product quality, durability, eco-friendliness, or exceptional customer service. By positioning themselves as industry leaders or specialists in specific niches, siding companies can create a competitive advantage that sets them apart from rivals.

How Much Should a Siding Company Spend on Marketing & Advertising in 2024?

2. Target Audience: Understanding the target audience demographics, preferences, and behavior patterns is essential for crafting effective marketing campaigns. According to the SBA, small businesses account for 99.9% of all U.S. businesses, emphasizing the importance of catering to the unique needs of diverse consumer segments. Investments in market research and data analytics can help optimize marketing strategies and justify budget allocations.

Segmentation plays a crucial role in targeting the right audience with the right message. By dividing the target market into distinct segments based on factors such as demographics, psychographics, and buying behavior, siding companies can tailor their marketing efforts to address the specific needs and preferences of each segment effectively. This targeted approach enhances the relevance and effectiveness of marketing campaigns, maximizing the return on investment (ROI) of marketing expenditures.

3. Digital Transformation: The digital landscape continues to evolve rapidly, with online channels playing a significant role in consumer decision-making processes. Siding companies must invest in digital marketing initiatives, including website optimization, social media marketing, and search engine advertising, to maintain relevance and visibility. Embracing emerging technologies like augmented reality (AR) or virtual reality (VR) for showcasing siding products can also create immersive experiences that drive customer engagement and preference.

The shift toward digital platforms necessitates a comprehensive digital marketing strategy encompassing multiple channels and touchpoints. From optimizing website user experience (UX) to leveraging social media platforms for brand awareness and engagement, siding companies must leverage digital technologies to create seamless, personalized experiences for their target audience. Additionally, investing in search engine optimization (SEO) and pay-per-click (PPC) advertising can enhance online visibility and drive qualified traffic to the company's digital assets, ultimately translating into increased leads and conversions.

4. Marketing Channels: Evaluating the most effective marketing channels for reaching the target audience is crucial. While digital platforms offer extensive reach and targeting capabilities, traditional methods like print advertisements and direct mail may still hold value depending on the market segment. Siding companies should adopt a multi-channel approach, allocating budget resources across a mix of online and offline channels to maximize exposure and engagement opportunities.

The effectiveness of marketing channels may vary depending on factors such as the target audience demographics, industry trends, and the nature of the product or service offered. Therefore, siding companies should conduct thorough channel analysis to identify the most relevant and impactful channels for reaching their target market. Additionally, implementing an integrated marketing communications (IMC) strategy ensures consistency and coherence across all marketing channels, enhancing brand recognition and message retention among consumers.

How Much Should a Siding Company Spend on Marketing & Advertising in 2024?

5. Branding and Reputation Management: Building a strong brand presence and reputation is essential for long-term success. According to the SBA, 90% of consumers trust recommendations from friends and family, highlighting the significance of positive brand perception. Investments in branding initiatives, customer engagement programs, and online reputation management contribute to fostering trust and credibility among consumers.

Effective branding goes beyond visual elements such as logos and color schemes; it encompasses the overall perception and reputation of the company among its target audience. Therefore, siding companies should focus on delivering exceptional customer experiences at every touchpoint, from initial contact to post-purchase support. By consistently delivering on brand promises and exceeding customer expectations, companies can cultivate a loyal customer base and positive word-of-mouth referrals, which are invaluable assets in today's competitive marketplace.

Setting a Marketing Budget

There is no one-size-fits-all approach to determining the ideal marketing budget for a siding company in 2024. Instead, it requires a strategic assessment considering the aforementioned factors and the company's specific goals and resources. Here are some steps to guide the budget-setting process:

How Much Should a Siding Company Spend on Marketing & Advertising in 2024?

1. Define Clear Objectives: Establish specific, measurable goals for marketing initiatives, whether it's increasing brand awareness, generating leads, or driving sales conversions. Align these objectives with overarching business goals to ensure marketing efforts contribute to tangible outcomes and ROI.

2. Assess Historical Performance: Analyze past marketing efforts and their corresponding outcomes to identify areas of strength and weakness. Use this data to inform future budget allocations and optimize campaign strategies.

3. Competitive Analysis: Evaluate competitors' marketing tactics and spending levels to benchmark against industry standards and identify opportunities for differentiation. Analyzing competitor strategies provides valuable insights into market trends, consumer preferences, and emerging opportunities, enabling siding companies to fine-tune their own marketing approach for maximum effectiveness and impact.

4. Allocate Resources Wisely: Prioritize marketing channels and tactics based on their effectiveness in reaching and engaging the target audience. Consider allocating a portion of the budget for experimentation and testing new strategies.

How Much Should a Siding Company Spend on Marketing & Advertising in 2024?

5. Monitor and Adjust: Continuously monitor the performance of marketing campaigns and adjust budget allocations as needed based on real-time data and market feedback. Implementing robust analytics and tracking mechanisms allows siding companies to measure the effectiveness of their marketing efforts, identify areas for improvement, and optimize resource allocation for maximum ROI.

Wrapping Up

In 2024, siding companies face both challenges and opportunities in navigating the evolving marketing landscape. By strategically allocating resources and staying agile in response to market dynamics, companies can maximize their marketing ROI and position themselves for sustainable growth and success.

Remember, while there is no fixed formula for determining the ideal marketing budget, a data-driven and strategic approach will undoubtedly yield the best results in achieving business objectives and staying ahead of the competition in the dynamic siding industry landscape of 2024. By leveraging insights from market research, competitor analysis, and performance metrics, siding companies can make informed decisions that optimize marketing effectiveness, enhance brand visibility, and drive

Side with Us

If you're looking to up your marketing efforts as well as your revenue, look no further: At Galvanized Creative, we specialize in helping roofing and siding companies, particularly James Hardie contractors, to boost their sales. Our tried-and-true process is designed to help you sell more Hardie jobs and make your mark in the industry. Ready to take your business to the next level? Let's connect! Reach out to us today and let Galvanized Creative be the key to unlocking your success!

CHECK OUT OUR BLOG

Stay Informed. Grow Your Business.

Does Email Marketing Still Actually Work?
In an era of increasingly innovative marketing tactics as well as overflowing inboxes, it's natural to wonder: does email marketing still actually work?
A contractor installing James Hardie Siding
Making the Most of the James Hardie Contractor Alliance; from a Digital Marketing Agency
Explore the endless benefits of, as well as the best practices for Making the Most of the James Hardie Contractor Alliance; from a Digital Marketing Agency.
a woman viewing a social media ad while scrolling through her feed
What Does Social Media Do for Small Business SEO? 
Social media won't directly influence search engine rankings, but strategic integration can yield some major benefits. What Does Social Media Do for Small Business SEO?