![Video Games Store: how to plan and track your marketing budget [template]](http://onlineyougrow.com/cdn/shop/articles/cov-marketing-budget-6_3d328acd-95c0-44c9-9129-46dedb448267.png?v=1715783467&width=1100)
You’re a video game store owner. Let us pose a question - is your marketing budget draining your resources without boosting your sales?
We've observed many game store proprietors grappling with the challenge of allocating funds effectively for impactful marketing.
That's why we've created a straightforward, effective tool that not only monitors your marketing expenditures but also correlates them with your sales. Our free Marketing Budget Tracker Template, designed specifically for video game store owners, clarifies your financial landscape, illustrating the potential return on every dollar you spend.
Moreover, if you're looking to advance your store with the most effective tactics and strategies, check out our marketing pack for video game store owners.
Continue reading below to find out how you can utilize this tool to propel your store's growth and ensure that each marketing dollar is directly enhancing your bottom line.
Get our marketing budget template for your video games store
Most video games store owners don't know how to spend their marketing budget. We can help you.
How much should you spend in marketing for your video games store?
From our experience in consulting with soap manufacturers and developing our strategy guides, a common recommendation is to allocate about 3% to 6% of your soap manufacturing business's revenue to marketing.
This percentage is a good benchmark, but it's important to tailor it according to your specific business needs and the results of your marketing initiatives.
In terms of actual expenditure, the amount can vary widely based on your revenue and operational scale. For small to medium-sized soap manufacturers, a monthly marketing budget might range from $200 to $2000 or more.
The size of your budget will largely depend on your total operational budget.
While there's no absolute minimum that guarantees success, spending less than $200 a month may restrict your marketing activities and diminish their effectiveness.
When should I spend more? When should I spend less?
As your sales increase, it's generally wise to increase your marketing budget to support continued growth and allow for the exploration of new marketing avenues.
The nature of your soap products also influences your marketing budget. For instance, manufacturers focusing on organic or luxury soaps might invest more in high-quality branding and targeted advertising, whereas those producing everyday hygiene products might focus more on broader digital marketing campaigns.
If your recent promotions, online advertising campaigns, or sponsorships at health and wellness events aren't increasing sales or enhancing brand recognition, it might be time to reassess your marketing spend.
This could indicate a need to cut back, especially if you're facing tight financial constraints.
Conversely, if these efforts are successfully attracting customers, encouraging repeat purchases, and your profit margins are robust, reinvesting in your marketing could promote further growth.
How can I know if I am spending too much? Or not enough?
To determine if your marketing spend is excessive, monitor the return on investment (ROI) and the cost of acquiring each new customer. If your marketing expenses are reducing your profits without increasing sales or customer engagement — perhaps your latest campaign didn't resonate as expected or your online ads aren't converting — it's a sign you might be overspending without achieving the desired results.
Indicators that you're spending too much on marketing include campaigns that consistently underperform, a high influx of one-time buyers despite significant marketing efforts, or your marketing costs rising faster than your sales.
On the other hand, signs that you're not investing enough include stagnant sales, reduced market presence, or competitors gaining more visibility and customer engagement. These trends might suggest the need to enhance your marketing efforts.
The seasonality of your marketing budget
Finally, your marketing budget should fluctuate with the seasonal dynamics of the soap market. During peak times, such as holidays or health awareness months, increasing your budget can help you maximize on higher consumer interest. Conversely, during slower periods, you might reduce your budget and focus on targeted campaigns to maintain customer engagement and set the stage for upcoming busy periods.
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An example of marketing budget for video games stores
Planning a comprehensive marketing budget for a video games store requires a strategic approach to reach and engage gamers effectively.
Below is a detailed table that outlines a hypothetical annual marketing budget for such a store.
| Category | Subcategory | Estimated Cost (Annual) | Percentage of Total Budget |
|---|---|---|---|
| 1. Digital Marketing | Website (Maintenance & Hosting) | $2,000 | 4% |
| SEO (Search Engine Optimization) | $3,000 | 6% | |
| PPC (Pay-Per-Click Advertising) | $5,000 | 10% | |
| Social Media (Ads & Management) | $6,000 | 12% | |
| Email Marketing | $2,000 | 4% | |
| Content Creation (Game Reviews, Trailers) | $2,000 | 4% | |
| Total for Digital Marketing | $20,000 | 40% | |
| 2. Traditional Marketing | Print Advertising (Gaming Magazines) | $3,000 | 6% |
| Flyers and Posters | $2,000 | 4% | |
| Storefront Signage | $2,000 | 4% | |
| Gaming Tournaments (Sponsorships) | $3,000 | 6% | |
| Total for Traditional Marketing | $10,000 | 20% | |
| 3. Public Relations | Press Releases | $1,000 | 2% |
| Gaming Influencer Partnerships | $3,000 | 6% | |
| Charity Gaming Events | $1,000 | 2% | |
| Total for Public Relations | $5,000 | 10% | |
| 4. Loyalty & Promotions | Loyalty Program Setup & Management | $2,000 | 4% |
| Discounts on Game Pre-orders | $3,000 | 6% | |
| Launch Day Events | $3,000 | 6% | |
| Membership Exclusive Offers | $2,000 | 4% | |
| Total for Loyalty & Promotions | $10,000 | 20% | |
| 5. Miscellaneous | Market Research | $2,000 | 4% |
| Training for Marketing Staff | $1,000 | 2% | |
| Contingency Fund | $2,000 | 4% | |
| Total for Miscellaneous | $5,000 | 10% | |
| Total | $50,000 | 100% | |
What should be the main marketing expenses for your video games store?
Digital Marketing Budget and Expenses for Your Video Game Store
When planning your digital marketing budget for a video game store, it's generally recommended to allocate about 25-35% of your total marketing budget to digital channels. This range is a starting point and can be adjusted based on your specific needs and goals. Digital marketing encompasses several key areas including social media advertising, email marketing, SEO, and your store's website.
If you're new to these terms, don't worry! We've broken down each component and provided practical advice in our strategy pack for video game store owners looking to expand their reach.
Investing in social media advertising is crucial for connecting with both new and existing customers. A typical budget for social media strategies and ads for your video game store might range from $200 to $1500 per month. This budget helps cover costs like paid ads on platforms such as Facebook and Instagram, content creation, and possibly hiring experts to manage your campaigns. The more you invest, the wider your reach and the more targeted your marketing efforts can be, which can lead to increased sales.
Website Budget and Expenses
Now, let's discuss your website.
A professional, easy-to-navigate website is essential for your video game store. It serves as your online storefront. Developing a robust website can cost anywhere from $3,000 to $15,000 or more, depending on the complexity, design quality, and features (like online shopping carts or user forums). This investment is crucial as it provides a platform for gamers to explore your products, learn about new releases, and directly purchase games or accessories. A well-crafted website not only boosts your brand image but can also influence gamers' purchasing decisions.
SEO Budget and Expenses
SEO is another critical area where you should consider investing.
Effective SEO strategies help your website appear higher in search engine results, increasing the likelihood that potential customers will find your store. A monthly SEO budget of $500 to $2,000 is advisable. This investment covers activities such as keyword research tailored to the gaming industry, content creation (like game reviews or upcoming release previews), website optimization, and performance monitoring. An efficient SEO approach for your video game store can significantly boost organic traffic, potentially reducing the need for extensive paid advertising in the long run.
Other Marketing Expenses to Consider
Lastly, consider community engagement through sponsorships or participation in gaming tournaments and local events.
These activities can vary in cost from a few hundred to several thousand dollars based on the event's size and your level of sponsorship. Despite the expenses, the benefits include increased local brand visibility, community goodwill, and direct interaction with your target audience. These efforts are excellent supplements to your digital marketing strategies, ensuring a comprehensive approach to promoting your video game store.
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Marketing for video games stores with a limited budget
Running a video games store, particularly a smaller one, might make you feel like every dollar is crucial, often making marketing seem like an unaffordable luxury.
Yet, drawing in new gamers and keeping loyal customers returning is essential and requires some visibility efforts for your store.
The good news is, effective marketing for your video games store doesn't have to break the bank. This is particularly true if you have excellent content ideas for your store's social media. In fact, many powerful marketing strategies can be quite cost-effective or even free - we've detailed these in our strategy pack specifically designed for video games stores.
Cost-effective marketing strategies for a video games store
Here's a brief overview for you.
| Channel | Initiative | Estimated Cost |
|---|---|---|
| Social Media | Host a gaming tournament and encourage participants to share their gameplay moments using a specific hashtag. Offer a prize for the best clip each month. | $0 - $100 (for the prize) |
| Google My Business | Keep your Google My Business listing updated with fresh photos of new arrivals, respond to reviews, and post updates about upcoming game releases or in-store events. | $0 |
| Local Community Boards | Place posters or flyers on local community boards in schools, community centers, and colleges. Include a QR code linking to an exclusive offer or new game teaser. | $20 - $50 (for printing costs) |
| Email Marketing | Develop an email newsletter for your store. Offer a sign-up bonus (like a discount or exclusive content) and send monthly updates about new game releases, events, and special promotions. | $0 - $30/month (depending on the email marketing service used) |
| Collaboration with Local Businesses | Partner with nearby businesses for cross-promotions. For instance, offer a discount to customers who present a receipt from a nearby cinema or café, and vice versa. | $0 (potential cost of discounts) |
| Word of Mouth | Encourage your customers to bring a friend who has never visited your store by offering them both a discount on their next purchase. | $0 (cost absorbed by discount) |
| Loyalty Program | Implement a loyalty program where customers earn points for each purchase, which can be redeemed for discounts or free merchandise after reaching certain thresholds. | $50 - $100 (for setting up the program) |
How to track the marketing performance of your store?
To effectively gauge the success of your video game store's marketing strategy, it's crucial to monitor metrics that directly showcase the impact of your marketing initiatives on your store's performance. While increasing your marketing budget might seem like a straightforward path to attracting more customers, it doesn't always guarantee better results.
To maximize the efficiency of your marketing expenditure at your video game store, consider utilizing budget planning and tracking tools or software. Google Analytics, for instance, is an excellent resource for monitoring online interactions and can provide insights into how gamers engage with your online marketing efforts.
Moreover, social media platforms offer their own analytics tools that can help you assess the effectiveness of your campaigns on their sites. We break down these tools and simplify them for you in our strategy pack for video game store owners.
Signs of a fruitful marketing investment can be observed through both your sales figures and customer interaction metrics. For example, a surge in game pre-orders or an increase in store visits following a promotional campaign could directly indicate its success. Similarly, a rise in your social media followers or engagement rates after a targeted advertisement could signal enhanced brand recognition and interest.
Key Metrics to Monitor Your Marketing Efforts
To help you better understand, here are some key performance indicators for a successful marketing investment in the context of a video game store.
| Indicator | Description | Measurement Method |
|---|---|---|
| Increase in Game Pre-Orders | A noticeable rise in the number of pre-orders for games following a marketing initiative. | Compare pre-order numbers before and after the campaign. |
| Growth in Social Media Engagement | Increased likes, shares, comments, and followers on the store's social media platforms, indicating heightened interest and interaction with the brand. | Analyze social media analytics for spikes in engagement metrics. |
| Higher Foot Traffic | An increase in the number of customers visiting the store, potentially due to local advertising or promotional events. | Count the number of visitors or use a digital footfall counter. |
| Increased Sales of Promoted Games | Higher sales of games that were specifically promoted in the marketing campaign, signifying effective targeting and customer interest. | Track sales data for the promoted games before and after the campaign. |
| Positive Customer Feedback | Receiving more positive reviews and feedback online and in-store about the gaming experience or customer service, especially those highlighted in the campaign. | Monitor review sites, social media, and in-store feedback forms. |
| Enhanced Email Engagement | An increase in open rates and click-through rates for marketing emails sent to the store's mailing list, indicating higher interest in the content being shared. | Use email marketing software to track engagement statistics. |
| Rise in Website Traffic | More visits to the video game store’s website, indicating increased interest possibly sparked by digital marketing efforts. | Analyze website analytics for increased traffic and user behavior. |
Make your video games store more profitable
We have studied the strategies of the best video games stores in the world. All their tactics are explained in our pack!
Mistakes and pitfalls to avoid when marketing your video games store
Being strategic about how you allocate your marketing budget can significantly enhance your video game store's potential for success and growth.
Let's explore some common financial pitfalls in video game store marketing, presented in a table for clear understanding.
| Pitfall | Description | Prevention Strategy |
|---|---|---|
| Overspending on General Advertising | Investing heavily in broad, untargeted advertising (e.g., TV commercials) that fails to specifically engage gamers. | Utilize targeted digital advertising. Focus on platforms frequented by gamers, such as Twitch and YouTube, for precise demographic targeting. |
| Neglecting Online Engagement | Not maintaining an active and appealing online presence, which is crucial for connecting with the gaming community. | Keep your website and social media pages updated with the latest game releases and store events. Engage actively with followers. |
| Underutilizing Community Building | Failing to build a community around your store which can drive both initial visits and repeat business. | Create in-store events, tournaments, or game nights to foster a community. Encourage online discussions and groups. |
| Ignoring Local SEO | Not optimizing for local SEO, making it hard for potential customers to find your store when searching for video games nearby. | Ensure your store is listed on Google My Business, use relevant local keywords, and keep your listings updated on gaming review sites. |
| Overlooking Customer Loyalty | Concentrating solely on attracting new customers without efforts to retain existing ones, potentially increasing churn and reducing profitability. | Implement loyalty programs, offer exclusive member discounts, and use targeted email campaigns to keep your store in regular customers' minds. |
| Improper Budget Allocation in Social Media | Excessive spending on social media ads without a strategic plan or understanding of each platform's impact. | Start with small, targeted ad experiments on different platforms. Analyze performance data to guide future investments. |
| Not Measuring Marketing Effectiveness | Lack of tracking for marketing ROI, leading to potential ongoing investment in non-performing strategies. | Employ analytics tools to monitor and evaluate the effectiveness of marketing campaigns, adjusting strategies based on performance data. |
| Chasing Every New Trend | Investing in every emerging marketing trend without evaluating its relevance to your target gaming audience. | Critically assess new marketing trends for alignment with your store's goals and customer interests before committing funds. |
| Disregarding Offline Engagement | Overlooking traditional marketing methods like local gaming conventions, flyers, or partnerships with local gaming clubs. | Participate in or sponsor local gaming events, collaborate with nearby schools or gaming clubs, and distribute promotional materials in high-traffic areas. |
| Lacking a Crisis Marketing Strategy | Not having a flexible marketing strategy for economic downturns or other crises, which can result in hasty or ineffective responses. | Develop a versatile marketing plan that can be quickly adapted to various challenges, ensuring stability and presence in the market during tough times. |
We can help you spend smarter on marketing for your video games store
We understand the hurdles you face as a video game store owner when it comes to allocating funds for marketing.
The plethora of marketing terms and strategies can be confusing, making it tough to determine where to focus your efforts and resources. You might prefer investing in direct enhancements to your store's gaming selection or gaming environment, or you may be wary of the substantial initial costs of marketing without assured outcomes.
Perhaps you've attempted marketing before and it didn't turn out as expected, leaving you doubtful of its effectiveness. Or maybe you're swamped by the numerous choices and the fast-paced changes in digital marketing, making it tempting to just rely on gamer community word-of-mouth and the quality of your games and customer service.
It's completely understandable that amidst the daily grind, crafting and executing a marketing plan seems overwhelming, if not unfeasible.
Acknowledging these challenges, our team has crafted a set of marketing strategies specifically tailored for video game store owners like you. This set simplifies marketing with clear, easy-to-follow guides that eliminate the technical speak and focus on practical, actionable strategies.
We've selected cost-effective and straightforward marketing techniques that don't demand a hefty initial investment, providing solutions that are economical yet have the potential for tangible returns.
Our set includes a variety of options to accommodate different preferences and budgets, helping you make knowledgeable choices without feeling swamped. It's designed to empower you to use digital marketing to your benefit, even if you're not a tech expert, and to enhance your store's reputation through effective, structured marketing efforts.
By integrating these tools, we aim to lighten the load of marketing, allowing you to concentrate on what you do best: managing your store and providing an exceptional experience for your gamers.
Your video games store could make more money!
Most video games store owners don't know how to grow their business. Let us teach you the right strategies.
