How much does expansion cost VI.: Marketing and PR

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How to get the most acquisitions out of marketing activities and what to bear in mind when building a name on a new market? Read the last - sixth, part of our series on expansion costs. In this article, you will learn which marketing tools are important, especially in the beginning of the expansion, why you can't leave out PR companies and what you can gain by working with an agency.

Acquiring new customers: marketing and PR


  • For new companies, the monthly costs of marketing alone range from 12–20% of gross revenue, while established companies should expect to spend 6–12%. Realistically, it can be EUR 5,00020,000. Having your own marketing team is a bigger investment, expect costs of EUR 10,000/month.
  • You can also work with an agency that will provide you with a team of experts, starting at EUR 1000/month.
  • The average cost of PR is around EUR 2,500 monthly for organic PR without media purchase. In the case of investment in advertising / influencers, it's a good idea to set aside a few extra thousands of euros. 

Don't forget

  • Marketing and PR activities are key to starting a business, whether it is the Czech Republic or any other country, so make sure you budget for these activities as well.
  • PPC campaigns and social networks are almost mandatory for promotion. Other channels may vary depending on the type of business.

Even before actual expansion, you most likely tested the market potential with marketing activities (most often in the form of paid advertising on Google and Facebook). The same still awaits you, along with the implementation of a marketing strategy and PR. 

Which marketing tools are worthwhile?

Even conscious entrepreneurs, who know that marketing is a necessary (and at the same time not insignificant) investment, are often at a loss as to which tools to choose. According to Mark Vidovič of Dexfinity, it is necessary to engage PPC ads on a regular monthly basis for successful growth in the market, at least Google Ads, Google Shopping (in countries where it exists), Facebook Ads, or Instagram Ads. The use of other channels then depends on the type of goods you sell. For clothing, working with local influencers or YouTube Discovery Ads may be a good fit.

First of all, a well-designed business plan and properly set KPIs (performance indicators) are the starting point. The key to a good strategy is to be able to measure if it is working. Based on his experience, Marek Vidovič from Dexfinity recommends focusing on cost per turnover and overall stable growth. You can gradually add more parameters as the business does well. Our main goal is to accelerate the business. We look at the financial health of the client, whether they have the right pricing, logistics, margins to be profitable,” says Marek.

The advantages of working with an agency are substitutability – you won't have the whole campaign collapse if one person fails.

You should also consider the budget you will be working with in marketing. According to WordStream, young businesses should allocate 12–20% of their gross income to marketing within 5 years of existence, while 6–12% will be sufficient for businesses that are operating longer. If you own an established online shop in the Czech Republic and you are going to expand abroad, you will be acting as a new company, so you need to count on higher costs for promotion.

PR as a must in the marketing mix 

What is forgotten in agile expansion through PPC is building a name in a market where you are a no-name: “In general, PR is often the last item thought of or the first item crossed off. However, based on our agency data, the situation has improved and is improving over the last few years. As clients penetrate abroad, they realise that they have to invest in this segment,"” recalls Denisa Juna, CEO of Pyxis Media. Many start from scratch. In the domestic market, for example, they have created word of mouth, people know them, they are memorable and distinguishable, in other words, the brand works well. They are a long-established company with a functioning CRM, and therefore they wave away PR. But many times they don't realise that the budget they would invest in PR in the Czech Republic is, for example, 2-3 more for the foreign market, depending on the market.”

Hire an agency or work on your own?

Here too, it is similar to other sectors. Of course you can invest your time and if you enjoy marketing, can communicate with people, and are also creative, it can work (at least initially). On the other hand, if you pay an agency, it's like hiring a whole team of experts who know exactly what they're doing. In addition, if it is an agency that focuses on foreign markets, you are guaranteed to have a native speaker's knowledge of the local language and environment of the target country. We've seen brands that first tried PR abroad on their own and after a year came to us asking for cooperation. They have simply failed to achieve the KPIs that they can achieve with the right team that has the market mapped out with the contacts they have already built,” Denisa from Pyxis Media sums up the issue.

We've seen brands that first tried PR abroad on their own and after a year came to us asking for cooperation. They have simply failed to achieve the KPIs.

When you work with an agency, you can also expect an analysis of the market you are going to expand into. This is key to setting a successful business plan and marketing strategy. When you see the options written out in front of you, including specific numbers, you can better navigate this complicated issue and make informed decisions about the direction of your business and budget.

Other advantages of working with an agency are substitutability – you won't have the whole campaign collapse if one person fails. If you wanted to set up your own marketing team, it would take a long time and you would have to factor in the cost of training, salary, etc. This is not a risk when hiring an agency, they have their functioning fine-tuned to the smallest detail, so you don't have to wait for months for the result, but just a few weeks to get acquainted with a particular business.

Do you wonder what are the price ranges for other services related to e-shop expansion? Read the full range of our six articles to find out what is the cost of market analysis, customer support, translations, marketing, accounting or reverse logistics.

Do you have many specific questions now about how this will work and look tailored to your business? Feel free to contact us. You can find consultation form on our website.

Filip Minár Head of Sales
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