In one of Netsertive’s latest episodes of The Art of Franchise Marketing podcast, our host Erin Martin poses the question, “What is the top thing most franchise marketers get wrong?”
With experience as a franchisee, franchisor, CMO, and franchise consultant, Madeleine Zook offers a candid, no-nonsense response to what is really stalling franchise growth – low ad spend.
“Marketing was tough last year for everyone. Returns aren’t what they used to be, and the strategies that once worked are no longer enough to drive real growth.
Consumers now expect interaction before they transact, making it harder to convert leads without multiple touchpoints. Many franchisees haven’t adjusted quickly enough—minimum marketing spends in FDDs are no longer sufficient to compete. The only way to win in today’s landscape is through volume, sustained investment, and market dominance. It’s a long game.”
Every franchisor deeply understands the ongoing battle to educate franchisees on why digital marketing is an investment, not a cost, and that battle is critical now more than ever as AI, rising ad costs, and the changing search experience redefine what it takes to win online.
In this post, we’ll explore key strategies to help your franchisees maximize their local marketing budget and drive better results.
Understanding the Local Economic and Digital Marketing Landscape
The economic shifts in recent years have profoundly impacted digital marketing, and franchise businesses are feeling the effects. In a post-COVID world, consumer behavior has shifted back toward in-person interactions, impacting the effectiveness of specific digital strategies.
- Election Year Impact: Franchise brand sales typically experience a 10% decline during election years, so adjusting expectations is essential.
- Increased Digital Marketing Costs: Lead costs have increased. This means franchisees need to be more strategic with their spending.
- Google Ads Decrease: The space available for Google Ads has shrunk due to larger ad formats, which has increased competition and raised costs.
How to Achieve the Market Dominance in the Eyes of Your Prospects
In this increasingly competitive environment, “market dominance” as a highly targeted approach, and choosing the proper marketing mix is more crucial than ever. Your ideal prospects need to see you multiple times before converting, while at the same time, you need to avoid wasting impressions on those that are not ideal fits. Being overly reliant on only one digital channel could cripple a business when that channel is no longer profitable for them. Here are some key considerations for evaluating marketing mix and digital channels based on the level of intent and the quality of leads.
- Google Search: As the highest-intent channel, Google Search continues to deliver the best return on investment for most businesses. Allocating a significant portion of your budget here ensures you target prospects with high purchase intent, but this can also be done in more sophisticated and targeted ways. For example, you can use 1st-party data to exclude current customers from paid ads to reduce wasted ad spend or bid higher for those searching for services you offer who visited your website and didn’t convert.
- Social Media: Platforms like Meta (Facebook and Instagram), and YouTube are great for brand awareness and engagement but they can easily be viewed as low lead generation drivers when not used properly and in the context of how a prospect is engaging with the platforms. For example, when people are scrolling or viewing videos, they may not be ready to switch what they are doing but they will take note of a well-placed retargeted ad, reminding them of a product or service they were researching.
- Grassroots Local Marketing: Combining digital efforts with direct mail and other local marketing tactics is essential for generating valuable impressions and driving foot traffic to physical locations. For example, many brands are using online information to retarget those who have shown interest with direct mailers as a smart way to integrate marketing and be smart with ad spending for a larger impact.
Budgeting and Spend Allocation
Strategic budgeting is the key to making digital marketing work in today’s environment. Here’s what franchise businesses should keep in mind when it comes to digital spending:
- Prioritize High-Intent Channels First – Start with channels that capture demand, like Google Search, before expanding into broader awareness efforts such as social media or display advertising.
- Think Local and Digital Together – A well-balanced strategy incorporates both digital and local marketing efforts (e.g., direct mail, community sponsorships, and in-person events) to maximize reach and engagement.
- Optimize Based on Performance Data – Regularly analyze campaign results to adjust spend allocation, ensuring that budgets are being directed toward the most effective channels.
Strengthening Franchisee Support & Education
Franchisee support and education are essential for driving marketing success across locations. Providing structured resources, collaborative opportunities, and ongoing training ensures franchisees can navigate the evolving digital landscape effectively. Here are some key ways to enhance franchisee marketing success:
Develop Local Marketing Playbooks
Create a comprehensive local marketing playbook to guide franchisees on digital and traditional marketing strategies. This can include:
- Recommended ad spend allocation and channel prioritization
- Local SEO and Google Business Profile optimization tips
- Social media content ideas and best practices
- Community engagement strategies (e.g., partnerships, sponsorships, and events)
- Performance tracking and benchmarking guidance
Leverage Franchisee Conventions & Roundtables
Use franchisee gatherings as an opportunity to educate and collaborate:
- Workshops & Breakout Sessions: Hands-on training on digital marketing tactics, campaign optimization, and brand consistency.
- Success Story Showcases: Highlight top-performing franchisees and share actionable strategies they’ve used to drive results.
- Peer-to-Peer Learning: Facilitate roundtables where franchisees can exchange ideas, challenges, and best practices.
Provide Ongoing Training & Resources
- Monthly Webinars & Office Hours: Host expert-led sessions covering emerging trends, platform updates, and campaign insights.
- Marketing Help Desk: Offer a dedicated support channel where franchisees can get real-time assistance on digital marketing execution.
- Content & Asset Library: Maintain a central hub with ready-to-use ad templates, social media graphics, and promotional materials to ensure brand consistency.
By providing franchisees with the right tools, education, and collaborative opportunities, brands can empower them to execute marketing strategies more effectively and drive local business growth.
Next Steps for Franchise Marketing Optimization
To ensure that franchisees are on the path to success, here are the key action steps to implement:
- Review and Adjust Marketing Minimums: Ensure franchise agreements reflect the current market realities and include updated marketing spend requirements.
- Implement a Marketing Revenue Calculator: This tool helps franchisees understand the required spending based on their revenue goals, making budgeting more transparent and effective.
- Create Benchmarks: Establish key performance benchmarks across the franchise system to measure success and identify areas for improvement.
- Educational Materials: Develop and distribute educational resources to help franchisees understand marketing best practices and how to measure their digital spending effectively.
- Evaluate Agency Partnerships: Reassess current marketing partnerships and set clear agency performance expectations.
- Join Networking Platforms: Consider joining networking platforms to facilitate ongoing information sharing and collaboration between franchisees.
Final Thoughts
Franchisees can maximize their digital marketing efforts and achieve better results by focusing on high-intent channels, optimizing marketing spend, and tracking key performance metrics. Education and support for franchisees are critical in ensuring that they understand the new digital marketing realities and have the tools and knowledge to thrive in a competitive marketplace. By taking these steps and adjusting marketing strategies in response to market changes, franchise businesses will be better positioned to succeed in today’s economy.
