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Maximizing Franchise Brand Advertising: A Guide to Budgeting Per Location

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Spencer Moody
Hyperlocology Per Location Budgeting


In franchise marketing, taking per-location approach has emerged  as a powerful strategy. Unlike traditional national advertising efforts that cast a wide net, Hyperlocology tailors marketing strategies to specific locations. One key aspect of this strategy is creating budgets per location, allowing for more effective and efficient campaigns and the ability to involve franchisees in brand-directed advertising. We’ll take a look at the different methods of determining location-specific advertising budgets and the reasons why this approach yields superior results.


Methods for Determining Location-Specific Advertising Budgets

1. Even Split Budgeting

The most straightforward approach to location-specific budgeting is to divide the total advertising budget evenly among franchise locations. This method ensures each location receives an equal share of the resources, but it may not account for variations in location-specific factors that influence advertising effectiveness.

2. Population-Based Budgeting

This method involves analyzing the populations of each franchise location and allocating budgets accordingly. For example, areas with a higher concentration of the target audience may receive a larger budget share. This approach ensures that resources are aligned with potential customer reach.

3. Percent Contribution to the Ad Fund

Some franchises allocate advertising budgets based on the percentage of contributions each location makes to the advertising fund. Locations that contribute more receive a larger share of the budget. This method incentivizes individual franchisees to invest in marketing and rewards those who actively support the brand's advertising efforts.

4. Impression Level Budgeting

Another approach to location-specific budgeting is based on impression levels. This method depends on the channel mix, such as display, connected TV (CTV), and digital out-of-home advertising. Brands can split the budget to ensure that each location receives a certain number of impressions. This approach sets a threshold for locations, guaranteeing a minimum level of exposure..

5. Custom Methods

Franchise brands can also create custom methods for budget allocation. For instance, they might consider factors like historical performance, market competition, or the specific goals of each location. This flexibility allows brands to adapt their approach to the unique needs of their franchisees.

Consideration of Budget Minimums on Advertising Platforms

When determining budgets for location-specific advertising, it's crucial to factor in platform-specific minimum requirements. Platforms like Google and Facebook have minimum budget thresholds for effective campaign performance. Franchise brands should ensure that location budgets meet or exceed these minimums to maximize the impact of their campaigns.

Why Budgeting Per Location Is Effective

  1. Targeted Marketing: By allocating budgets per location, franchise brands can create highly targeted advertising campaigns. This precision ensures that marketing efforts reach the right audience in the right place.

  2. Efficiency: Hyperlocology minimizes wasted resources by concentrating efforts where they matter most. This efficiency translates to better return on investment (ROI) for franchisees and the brand as a whole.

  3. Customization: Each location can tailor its marketing approach to local preferences and needs, enhancing engagement and conversion rates.

  4. Accountability: Franchisees become more invested in advertising efforts when they have a say in their budgets. This accountability can lead to more active participation and collaboration between the brand and its local owners.

Stats and Benefits of Per Location Advertising

Several case studies and industry reports have highlighted the effectiveness of location-specific advertising:

  • Higher Conversion Rates: Location-targeted campaigns often yield higher conversion rates compared to broad national efforts.

  • Increased Foot Traffic: Brands that implement advertising strategies per location often experience a significant increase in foot traffic at individual locations.

  • Improved Brand Loyalty: Customers are more likely to engage with a brand when they see personalized, relevant advertising for their local area.

  • Cost Savings: Brands that adopt Hyperlocology per-location approach often find they can achieve their marketing goals with smaller budgets, leading to cost savings.

The Hyperlocology platform helps with location-specific budgeting and is an essential tool for franchise brands looking to make the most of their advertising efforts. By tailoring budgets to individual locations and accounting for platform-specific minimums, brands can create more effective, efficient, and accountable marketing campaigns. The stats and benefits of this approach speak volumes, proving that it's a winning strategy for both franchise brands and their dedicated franchisees.


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