Archive for October, 2010

Which US Brands are Spending the most on Advertising?

Wednesday, October 27th, 2010
Check out this article I found on kissmetrics.com which discusses the US brands spending the most on advertising . I’m surprised that General Motors made it up  there. Even legacy brands need to continue to pump dollars into consumer advertising in order to keep on top of consumers minds. Thus small businesses need too as well but on a much smaller scale in order to retain their niche market share.

http://blog.kissmetrics.com/top-ad-spenders/?wide=1

Marketing Expenses can be written off from a tax perspective

Monday, October 25th, 2010
In today’s high-tech, global, business environment, the potential for growth and exposure is greater than ever before, and as I’ve mentioned, marketing is key to taking advantage of this potential.

Simply put, marketing can provide you with the tools that will help you maintain your company’s presence and keep it competitive.

Websites, for example, have become one of these essential tools. Your company’s website, however, needs to be more than just a URL address and a phone number. It has to be attractive, informative and easy to use. After all, in business as in life, first impressions are everything, and if you want your business to succeed, you need to put your best face forward.

Branding is another big one. We live in a branded world, and like it or not, everyone from Nike to your local charity has realized the importance of having a clean, consistent brand image. Your brand is your company’s identity, and as with websites, that image needs to convey confidence and competence.

If developed well, marketing strategies will attract attention to, and generate buzz about, your company and your services, and this, of course, means an increase in revenue. It is important, however, to always remember the old business adage “you have to spend money to make money.” Beautifully designed websites and strong, effective branding campaigns are investments, and like all investments, they will cost you money. The thing that many businesses don’t realize is that marketing can be claimed as a business expense.

Did I just blow your mind?

It’s absolutely true. Marketing expenses can be fully written off from a tax perspective, which means your company should monitor revenues to see what percentage can be reasonably used for this purpose.

According to Robert Elm BComm, MBA, CA, CPA (Illinois), CIP, PFP of Elm and Associates, “the Canada Revenue Agency has certain restrictions on the deduction of advertising in periodicals. The complete wording can be read at the CRA web site at http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/bsnssxpnss/dvrtsng-eng.html“.

So, keep marketing at the top of your financials all the time and remember to view it for what it really is: a way to make more money.