From participating in local events to partnering with other local, non-competitor businesses, these are some of the ways to increase brand awareness on a budget. Being active on social media can also help.
You'd want to consider spreading brand awareness through those low-cost tactics, given that advertising and marketing strategies typically consume a large chunk of a business's budget. A Gartner study, for instance, found that marketing budgets for 2025 averaged 7.7% of overall company revenue. However, new businesses, or "startups," may end up spending more initially since they often have to start from scratch to spread awareness about their brand.
In this guide, we'll share insights into small business branding and cost-effective marketing strategies to help you stay within budget, so read on.
What Do You Mean by Brand Awareness?
Brand awareness is the level of familiarity consumers have with a specific brand. It represents the "strength" of a brand in people's memories.
Brand awareness consists of two primary dimensions: brand recognition and brand recall. The first is when consumers recognize a brand when exposed to its elements. The second is when they can remember a brand even if not directly exposed to it.
What Is an Example of Brand Awareness?
What's the first thing that comes to your mind when you see golden or yellow arches that form the letter "M?" Chances are, you'll immediately think of McDonald's. Likewise, you'll likely associate a check mark with Nike's "Swoosh," or the statement "Impossible is Nothing" with Adidas's slogan.
The above are examples of excellent brand awareness at work, as they immediately bring to mind a brand. Brand recognition, for instance, makes people immediately think of a specific company when they see its:
- Logo
- Packaging
- Jingle
- Any other visual or textual cue, such as slogans or taglines
As for brand recall, an example is when someone asks you to name a soda, and the first thing you can think of is "Coca-Cola." Another is if you need to conduct a search query online, and your first thought is to use Google.
How Do You Boost Brand Awareness on a Tight Budget?
Investopedia says that small business owners report that advertising accounts for around 14% of their annual budget. It also cites two spending benchmarks: first is to allocate 7% to 10% of the gross revenue or 10% to 20% of the gross income.
If you're on a tight budget and you can't afford to spend loads on traditional strategies like TV ads or billboards, you can still enhance brand presence and awareness through the following low-cost advertising strategies.
Participating in Community or Local Events
Participating in or hosting local events, such as pop-ups, can help you spread awareness about your brand and connect with potential customers. Volunteering and sponsoring an event through non-financial means can also help build visibility.
An example is giving some of your products as prizes for a charitable run. Another is by volunteering to create well-designed posters and flyers with all the event sponsors' logos included. If you need templates or ideas for the print ads, you can explore design options here.
Participating in these events can also make consumers associate your brand with goodwill and community connection.
Collaborating With More Established, Non-Competitor Businesses
When you collaborate with an established, non-competitor brand, you can tap into and expose your brand to their customer base. You're more likely to get consumers' attention since they already trust your partner.
An example is if your business is a restaurant. In this case, consider collaborating with a brand known for being a reputable provider of local produce or organic ingredients.
Being Active on Social Media
Creating profiles and sharing content on social media platforms, such as Facebook, Instagram, and YouTube, is free, making them ideal budget-friendly marketing tools. Even if you pay to advertise on these platforms, they can still cost you less than traditional methods like TV ads.
Frequently Asked Questions
Why is brand awareness critical?
Brand awareness is critical to the success of your business because it forms the basis of consumers choosing your products or services over your competitors. When people know and trust your brand, it's more likely to be at the "top of mind." It'll be the first thing they think of when they need the goods or services your business offers.
On the other hand, if people don't know about your brand, they'll likely gravitate toward your competitors, especially those they're already familiar with. You can lose a lot of potential business, forcing you to spend more on trying to market your brand.
How do you determine brand awareness?
You can determine or "measure" brand awareness by using social listening and analytical tools. They can help you track brand mentions, audience reach, and market sentiment. Google Analytics and other SEO software programs can also assist you in monitoring your brand's "popularity" and traffic to your online assets, such as your website.
Why don't awareness campaigns work?
Even with a massive budget, brand awareness campaigns can fail because of a lack of strategic planning. An example is when a brand focuses too much on a campaign's creative elements instead of setting clear, long-term goals and understanding its target audience. In this case, the message can get lost in translation, failing to capture consumer attention or attracting the wrong audience.
Can word-of-mouth marketing help build brand awareness?
Yes, and if used correctly, it can be a powerful, low-cost tool to spread awareness about your brand. You can encourage word-of-mouth marketing, such as through referral programs and online reviews. Don't forget to acknowledge and thank customers for their efforts by offering discounts or loyalty awards; doing so can make them even more likely to recommend your brand to others.
Spread Awareness About Your Brand With These Tactics
Brand awareness is the foundation of your business and can either make or break it, as it determines whether consumers will choose your products or services or go with your competitors instead.
The good news is that you don't have to spend a fortune to break through the market. Participating in community events, collaborating with other businesses, and being active on social media can help you build brand awareness, even on a budget.
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