8 reasons why contractors don’t spend money on marketing


Compare to other industries. Contractors spend little or no money on marketing. Here’s why.

Piccadilly Circus

Contractors may earn millions and billions, but there marketing budgets are tiny.

The belief in marketing is beginning to change but still low on the bell curve.

Here’s eight reasons why they don’t have big ad budgets:

  1. Traditional Nature: The construction industry has historically been more traditional and focused on relationships and word-of-mouth referrals. Many businesses in the industry have relied on established networks and reputation to secure contracts.
  2. Project-Based Nature: Construction projects are often individual, one-off endeavors. This means that the marketing approach might differ from industries with ongoing, repeatable sales cycles.
  3. B2B Emphasis: Much of the construction industry’s work is business-to-business (B2B), meaning that they deal directly with other businesses or government entities rather than the general public. Marketing strategies for B2B can be different from those aimed at consumers.
  4. High Competition, Low Margins: The construction industry can be highly competitive with relatively low-profit margins. This can lead some companies to prioritize cost management over marketing expenditures.
  5. Perceived Need: Some construction companies might believe that their services are needed regardless of marketing efforts due to the essential nature of construction projects. Therefore, they might not see marketing as a critical investment.
  6. Lack of Awareness: There could be a lack of awareness or understanding about the potential benefits of marketing within the industry. Companies might not realize the impact that effective marketing strategies can have on their growth and success.
  7. Regulation and Reputation: The construction industry is subject to various regulations and safety standards. A focus on compliance and a strong reputation might take precedence over marketing efforts.
  8. Resource Allocation: Companies in the construction industry might allocate resources towards operational needs, equipment, labor, and materials, leaving limited funds for marketing.

Some construction companies are recognizing the importance of marketing to build a brand, establish credibility, and stand out in a competitive market. As the business landscape evolves, more construction firms are exploring digital marketing, social media, and other modern marketing techniques to connect with potential clients and showcase their expertise.

More to come on this.

Get industry news in 5 minutes!

A daily email that makes industry news enjoyable. It’s completely free.