How Much Does Branding Cost?
Branding cost ranges from $5,000 to $100,000+. Let's break it into constituents to understand price formation and what budget you should have.
Branding is more important in today's world than you may think. Recent studies show that more than 80% of customers agree that they need to trust the company to buy from it. Whereas 50% of the respondents say that they are willing to spend even more on a company they are loyal to. As many experts and successful entrepreneurs agree, in 2022, companies in all niches will experience considerable tension. To continue paving the way to success, it is vital to invest in branding.
More so, it is no longer something exclusive. Thanks to diversity in brand identity pricing packages, this marketing concept has become available to everyone. Although corporate identity package pricing for big names and giant corporations may still reach the top end of five figures, the branding packages for startups are quite pocket-friendly. For instance, the best USA digital agencies stick to transparent brand strategy pricing, offering cost-effective digital branding services so that early-stage companies get a bright start in their career.
Let's consider some good reasons why it is vital to include branding cost into the overall company's budget before answering how much does a brand identity cost.
Why Is It Important to Invest In Branding?
Before moving to actual numbers of the branding price list that gives you hints on average branding costs, it is crucial to understand why you should invest in this marketing concept.
We have already pointed out some strong reasons why branding is important; let's set out some other strong points:
- It helps to get overall recognition.
- It makes the company memorable.
- It generates extra organic traffic that translates into lead generation.
- It builds trust and loyalty.
- It drives engagement.
- It improves advertising across all channels of distribution.
- It helps to run successful retention campaigns.
- It turns customers into brand evangelists.
- It advocates a tangible team spirit and inspires the staff's devotion, making the company less risk-averse.
- It prolongs the company's life.
- And most importantly, it increases revenue.
Even if branding package cost seems to be on the expensive side, it is still highly recommended to meet this expense. This investment will pay off since not only does it have a positive ROI, but it also generates a bunch of benefits for the company that has an immediate and long-lasting positive impact.
Brand Identity Cost
The cost for branding package may drastically vary. Many factors influence it: niche, company's scale, company's age, overall marketing strategy, target audience, competition, market fluctuations, and range of services.
Speaking of which, the latter is a fundamental factor in forming branding pricing. The deal is, branding goes way beyond visual identity. While several decades ago, it was enough to have a fancy logo and catchy tagline to set your company on a successful trajectory, in today's world, this is barely enough to set yourself apart from the competition on the store shelf. If you want to reap all those benefits listed above and turn your company into a strong and competitive player in the market, you need much more than that.
Consider the recent studies that back up this:
- 3 out of 4 customers say that they love a brand because of helpful customer service.
- 3 out of 4 customers cite consistent user experience across all distribution channels as a decisive factor in purchasing decisions.
- 9 out of 10 customers say they stay loyal to brands that share their values.
Given the fact that typical branding includes these constituent components:
- Name development;
- Logo creation;
- Mascot creation;
- Core Message or Slogan creation;
- Company's statement and vision;
- Company's guideline;
- Visual identity, including website, email design, and brand marketing assets;
- Social media;
- Email marketing;
You may expect this startup branding package cost:
How Much Should a Brand Identity Cost?
|Service/ Deliverable||Low-End Price||Top-End Price|
|Brand Message and Vision||$2,500||$50,000|
|Advertising||$1,000||$100,000+ per month|
|Website Design and Development||$1,500||$100,000+|
|Digital Marketing, including SEO and Email Marketing||$2,500 per month||$100,000+ per month|
|Social Media||$500||$100,000+ per month|
Branding prices have the whole gamut of diversity. Not only do a variety of deliverables cause this vast range, but also the type of agency that you may choose. Obviously, small local firms may charge you less than big and renowned ones.
So, how to decide on your branding budget?
Decide On Your Branding Budget
It is crucial to remember that the do-it-yourself approach may cost you lots of money in the future because rebranding is an expensive and time-consuming process. Therefore, do not strike out items that you think you can easily do on your own. Branding is not static; it is a complex, ever-evolving process that needs a good start and constant supervision.
Therefore, you need to work with a professional digital agency that knows perfectly well how much to charge for branding in the current market environment considering such critical factors as fluctuations in the market, tendencies, competition, and societal values.
How much should you spend on branding?
Although many factors influence the final branding package pricing, as many professional and experienced marketers agree, it should not be less than 10% of your gross revenue. This number should be doubled for companies that have been in the niche for less than five years or kick-start their businesses. So expect to spend at least 20% of projected revenue on marketing or total yearly turnover. For well-established companies, this number may be allocated between 6 and 12 percent.
Possible Price Ranges
Branding cost is a subjective value since it depends on the company's overall budget. Let's get some valuable insights on what you can get if you decide to spend $3,000 or $100,000+ by examining the basic pricing tiers of a regular branding price list.
Less than $5,000
In this price bracket, you pay primarily for visual identity, and it means that you can fetch an excellent freelance graphic designer who can create an eye-catching logo and mascot for you. A marketing agency will set a direction for your brand based on the questionnaire rather than the company's strategy and values.
$5,000 – $45,000
This price tier considers a somewhat reliable and sensible level that involves a competent branding consultant who pays meticulous attention to your company. Though, as practice shows, it still can be on a surface level since it may need occasional tweaks to meet the market's requirements in the future.
As for visual identity, it will be much more sophisticated and advanced rather than in the previous case.
$45,000 - $100,000
This price tier considers being the most popular one since it brings high-level strategic thinking. Expect to work with highly-trained professionals with a wealth of experience. Not only do you get extreme attention to detail with your company set in the heart of the process, but you will also get an individualized brand strategy, which is supervised on every crucial level, top-notch visual identity, and highly-polished essential stuff to win over clients every single day.
More than $100,000
This price bracket implies working with renowned companies and global advertising agencies that usually deal with big names like McDonald's, Amazon, or venture-funded start-ups. They pay for exclusive approach, brand strategy, and of course name of the company.
How to Decide On Your Branding Budget?
Consider these tips on how to decide on your branding budget:
- Examine trends and fluctuation in the market to narrow down deliverables that you want to get.
- Examine your target market and its behavior and preferences.
- Research various economic marketing strategies to find one that fits your goals best.
- Consider what your competitors are spending. Although getting their exact budgets is almost impossible, you can still get some vital insights into them. Here, professional marketing companies can help you analyze the competition and provide you with approximate numbers.
- Decide on your marketing strategy. Where are you in your business' lifespan?
- Decide on a list of services that you want to order right now and what you will need later.
- Decide on whether to work with a well-experienced marketing company or give the young and ambitious one a shot.
The Average Cost Of Branding Package
We have already discussed various pricing tiers, but what is the best option, and where is the middle ground?
Given that you stay away from luxurious international companies that work with goliaths of industry, as a rule, the average cost of a branding package mainly depends on the services you want to order. Let's consider the most popular tiers in typical startup branding packages.
- Minimal Branding Package. It includes a visual positioning document, logo and wordmark, primary color palette, and basic logo guidelines. The average cost is $3,000 - $7,500.
- Basic Branding Package. It includes everything said in the previous pack and such extras as best practices for the company, brand patterns, secondary color palette, and brand application examples. The average cost is $7,500 - $25,000.
- Advanced Branding Package. It covers all services offered above plus Type System Recommendations, Collateral, social network assets. The average cost is $25,000 - $75,000.
So, how much does branding cost? Branding package cost is a subjective value because it depends on numerous factors. Therefore, be ready to spend something between $15,000 and $50,000 to help your company stay afloat, or $25,000 to $75,000 to give your company a solid start.
Although branding costs may require up to 30% of your initial budget, it is crucial to remember that this investment will pay off since, as recent studies show, consistency and meaningfulness of brand identity increase revenue by almost 35%. Also, according to McKinsey and Interbrand, companies that take branding seriously and invest more than 30% of their income consistently outperform the overall market. These stats are accurate during the pandemic as well. Therefore, these investments consider being money well spent.