What is the Right Advertising Budget for IAQ & Environmental Businesses? 

It's a difficult question with more than one good answer.  Just the other day I was discussing this exact topic with a business colleague and we both agreed that many companies in our industry don't prioritize this important aspect of marketing for generating new business. 
 
With many companies feeling the slow economy and stresses of normal day to day operations, like dealing with employee issues and cash flow, there sometimes seams to be little time or money left for advertising. 

Countless companies provide excellent services and top quality products in our industry, but they fail to survive or thrive because they lack enough clients.  Often the reason for the missing customers can be correlated to the fact that the right marketing message was never delivered to enough of the right potential buyers.
 
Unfortunately during this current economic slowdown many companies have cut their marketing and advertising budgets.  If a company does this how will their customers  find them. This decision might be cutting the very source of their future success and growth.  If anything, when business slows strategically increase marketing and advertising.
 
So for companies that understand that advertising is important for their growth, what is an appropriate amount to spend on advertising?   If you ask your peers in the industry you will likely hear a different answer from everyone you ask.  In general companies that are built to leverage volume tend to spend a smaller percentage of money on advertising (for example Wal-Mart may spend just 0.4% of sales on advertising but their volume is tremendous) while those built to leverage margins (instead of volume) typically spend a higher percentage.
 
There are however some companies in our industry where advertising on a grand scale may not be the ideal use of a limited marketing budget.  Companies such as my own marketing and public relations consulting firm is small enough that large scale advertising doesn't make sense since my business is built to leverage margins and not volume.  This doesn't mean I don't advertise, it just means advertising may get a smaller percentage of the marketing budget at my company.  The remaining marketing resources then go into other areas such as the internet, direct mail and so on.
 
So with that caveat here are my suggestions.  In general I would recommend starting with a figure close to 5% of desired (not actual) gross sales.  For young companies or those needing to jump start their business that number could go as high as the low teens.  This number is a good starting point and should be re-evaluated and adjusted accordingly over time.
 
Intentionally and methodically setting aside a reasonable percentage of your company's sales revenues is the best way to ensure advertising doesn't take a back seat to every other need within a company.  By taking this approach the age old question of how much do we need to spend can be replaced with the more appropriate question of how are we going to best spend our limited advertising budget?  
 
Companies that cater to the consumer market would target more consumer based media outlets whereas business to business advertising would likely take place in other publications and media outlets.  
 
The topic of where to advertise is an equally important decision and there are thousands of potential venues to consider depending on your target audience.  Within the IAQ marketplace one of the best business to business publications within the industry and related specialties continues to be the Indoor Environmental Connections.  For the industrial hygiene community The Synergist  is an important trade publication.  Restoration & Remediation is another fine publication that targets remediation and insurance professionals.
 
Advertising is a key component to marketing your business and can be done in so many ways.  Carefully think through your advertising goals, marketing message and don't forget to include a call to action in your advertising.   

I wish you the greatest success in advertising your business.