Franchise Development Teams Expect to Increase Google Spending More than Meta and LinkedIn in 2024
By: Michael Alston for Franchise Insights
February 28, 2024 – When asked about advertising plans for 2024,about a third of franchise development teams expected to increase their spending somewhat or significantly at Google, Meta or LinkedIn.
This is following 2023 wherein, despite tumultuous business conditions and shocking news headlines, more than 58% of franchisors surveyed either stuck to their growth plans (50.0%) or increased them. Franchises increasing their expansion plans (8.3%) were concentrated in the middle tiers of system size.
Franchise Development teams expect to increase Google spending the most, either “somewhat” at 34.5%, or 11.4% “significantly.”
Google is used for franchise lead generation by most franchise development teams, followed by Meta (Facebook/Instagram), while LinkedIn was not planned to be used by 42% of respondents. A further 8.7% said they would be decreasing their LinkedIn spending significantly in 2024.
On the other hand, 34.5% of franchisors expect to increase their Google spending “somewhat”, and 11.4% significantly. Meta spending is expected to increase “somewhat” at 35.7%, and 5.7% significantly. In the survey 30.4% expect to increase LinkedIn spending “somewhat” and 2.9% “significantly.”.
Competitive and supply and demand pressures at Google may make increased expenditures there necessary to achieve status quo, much less growth. Similar regulatory pressures and competition for user time may dictate adjustments in Instagram and Facebook budgets.
Apparently LinkedIn is out of the experimental category, with 58% of franchisors allocating some budget there in 2024, up from 50.7% in 2023.
Below is the same chart from our fall 2022 survey, which shows increases, but half or less the rate of the current year (2024). The anticipated impact of changes in major franchise development lead sources may be a factor in the intent to increase budgets, along with plans to support system growth.
As evidence of validity, the survey represented a cross-section of franchise development teams, from emerging systems to well-established franchises with many thousands of units.
FranchiseInsights.com surveys franchisors periodically to get a pulse on the industry, provide benchmarking and identify franchise development best practices. This survey was conducted in December 2023.
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Published on Wednesday, February 28th, 2024.