By Deeba S. Hargis (reposted here -my last moderated post from PhysicianCrossroads.com
As the C.E.O. of a global website engineering, design, and marketing company, I am often asked the question by new physicians (or any new business owner for that matter) “how much should I budget for website development and internet marketing?”
First off, it’s worthwhile to look at what amount you should set aside in general for marketing and advertising your medical practice.
According to the National Federation of Independent Business there are a number of key factors to consider when deciding what percentage of your revenue to spend on advertising and marketing your new business.
As a rule of thumb, consumer-facing businesses (those marketing to consumers) will spend more money on marketing and advertising than business-to-business companies. While the actual percentage will vary among medical practices, it’s common for a new or growing medical group to spend 10 to 15 percent of the year’s anticipated revenue on marketing and advertising. As a business becomes better known, this percentage could be expanded or trimmed accordingly based on careful monitoring and tracking of your marketing and ad campaigns. New physicians should monitor revenues closely and re-evaluate their budgets every three to six months to insure a good return on investment.
Factors that you should consider when deciding what type of marketing and advertising to use (e.g., online advertising and website development, newspaper, TV ads, radio) and how much you should spend include factors such as type of medical practice, your location, your target audience, and your competition.
Here’s some insights and statistics on who’s accessing the world wide web to help you decide.
While the demographics of the world wide web are changing, according the PEW Internet and American Life Project, about 80% of people who use the internet have searched for health information and health providers. About 72 -92 % of people ages 18-64 use the internet with those that are high income earners, college educated, urban and suburban, whites and English-speaking using it the most.*
If your target demographic matches that of internet users, you may want to consider setting aside 5-10 percent of your first year’s anticipated revenues on website development and internet advertising. Please look for more follow-up posts on this topic here in the weeks ahead. If you have any questions or need assistance, you can call us at EXCEL-WEST, (888) 317-9300.
* PEW Internet and American Life Project, The Pew Charitable Trusts.
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Deeba S. Hargis
C.E.O.
EXCEL-WEST
Consistently Essential. Amazingly Innovative.TM
www.EXCEL-WEST.com
Carlsbad, CA 92008
Phone .: (888) 317-9300
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