How Much Do Gyms Spend on Marketing?

The fitness sector is seeing a resurgence, with gym check-ins increasing as people become more interested in their health and wellness. This has created an ultra-competitive environment, with a gym on every corner, all fighting over membership. To stand out, you’ve got to have a strong marketing campaign.

That takes money. But how much? According to a 2023 International Health, Racquet & Sportsclub Association gym marketing survey, the typical marketing budget is between 2 and 12 percent of total revenue.

This article focuses on optimizing gym marketing budgets for the best outcomes, the distribution pattern into which your budget should be divided, and how to measure ROI from that Gym Investment.

The Fitness Industry Marketing Landscape

The rise of technology and changes in consumer behavior have put strains on gyms; the fitness industry is changing right under our noses. Here are four new trends that should be taken into account in the budget for marketing a gym

Personalized Messaging: Gyms are personalizing their marketing messages using AI and data-driven profiles. Personalized email campaigns, targeted social media ads, and custom offers based on user activity are all pretty standard in marketing these days.

Virtual Fitness: Virtual fitness classes and online training became popular during lockdowns. Today, gyms often offer online workouts, making them more accessible and convenient for members who want an extra workout at home or as a makeup if they were unable to come into the gym.

Fitness Integration: Gyms are now about more than burning calories and building biceps. Integrated well-being programs may include mental health, nutrition, and other holistic services. Marketing messages need to be packaged from this all-encompassing perspective to reach a wider audience.

Community Building: Leading gyms create an excellent community for their members. This is achieved through social media, events (both minor and major), and creating community spaces for mutual support.

Types of Marketing Strategies

When it comes to gym marketing, there are two main types of strategy: traditional and digital.

Traditional Marketing

Print Advertising: Advertising in the newspaper or in fitness journals and magazines may seem archaic nowadays. However, it can still be successful when done in tandem with online marketing. Use it to promote a special offer, and be sure to direct readers to your website.     

TV and Radio Ads: Local TV or radio ads allow you to share your message with the community through visual elements that trigger their emotions.

Hosting a local event: Community events like fitness challenges, triathlons, or health fairs can greatly improve the number of people who know about your facility. Use a special offer or a competition giveaway to collect email addresses. 

Digital Marketing

Social Media Presence: To be competitive, ensure that your gym has some sort of activity happening on social media platforms such as TikTok, Instagram, and Facebook. Share content, promote your classes, and interact with Members Daily!

Influencer Partnerships: Partner with fitness influencers and local celebrities to reach targeted audiences by leveraging their subscriber base. 

Search Engine Optimization (SEO) and Pay-Per-Click (PPC) Advertising: SEO content will make your gym more visible on search engines like Google. PPC advertising allows you to reach users who are actively searching for fitness services. 

Email Marketing: Don’t neglect email campaigns to inform current and potential members about promotions, new classes, and fitness tips. Segmented email lists allow gyms to tailor messages based on member interests and engagement levels. Use gym management software like Gymdesk to segment and personalize email messaging.

Average Marketing Budgets for Gyms

Small Gyms and Studios

Small gyms and studios usually spend between $1000 and $5000 monthly on marketing. The most popular spend is on social media advertising (mostly using Instagram and Facebook), which combines free posts with paid ads targeting particular niche markets in the local community.

Small boutique gyms often run cross-promotions with like-minded business owners. A gym, for instance, may team up with a health food store in the same mall strip to give members discounts at its partner’s business tied to their visits or purchases of products from the company.

Community events can benefit your small gym. Leverage the increased traffic flow by offering free classes, hosting a membership giveaway, or providing something complimentary. The gym can start a prospect list by capturing emails and then effectively manage the email campaign with targeted material.

Newsletters and promotional emails engage your existing members, while special offers or referral programs can entice new leads.

Mid-Sized Gyms

Most mid-sized gyms have a monthly marketing budget between $5000 and $20,000. It is typically divided equally between online and offline consumer marketing techniques.

Mid-size gyms typically use a mix of free and PPV advertising. They also use SEO blog content and posy workouts with daily tips. They may also buy local media print and radio ads to ensure the brand is getting noticed.

Another way to take advantage of consumers’ increased interest in fitness is to promote special promotions or discounts during peak seasons, e.g., New Year´s and summer, to enhance sales.

Large Chains and Franchises

Big gyms and franchises have marketing budgets of around $50,000 per month. The biggest franchises may spend as much as $1,000,000 monthly through their member clubs.

Massive chains commonly invest big dollars in glitzy TV spots, radio features, and famous high-dollar net advertisements designed to hammer home their national image. They could also collaborate with movie stars and influencers to attain more legitimacy and broader appeal.

Big players might additionally harness advanced digital marketing techniques, such as programmatic advertising, retargeting, and data analytics, to optimize their ad spending for peak ROI.

Big Gym chains usually have an in-house marketing team or a locally based agency, and they sell the programs accordingly.

Breakdown of Marketing Expenses

To maximize your return on investment, you must understand the breakdown of marketing expenses. Here’s an overview of how gyms allocate their marketing money:

Digital Marketing

The most popular platforms for marketing gyms are Facebook, TikTok, Instagram, and LinkedIn. Paid ads on these platforms allow you to get your message in front of specific, targeted niche groups of potential members. The costs usually range from $1 to $5 per click. However, there will be costs associated with creating the ad, including videos and graphics. 

Some gyms will employ the services of an SEO expert to rank higher on search engines such as Google. The budget for this can range from a few hundred to several thousand dollars per month.

Email Marketing

Gyms may use email marketing software like Mailchimp or Constant Contact. The cost is often based on the number of subscribers and the features used. Gym management software like Gymdesk features email marketing, marketing automation, and CRM tools to create incredible customer experiences.

Crafting compelling emails, including newsletters, promotions, and automated responses, involves copywriting, design, and campaign management costs.

Traditional Marketing

Placing ads in local newspapers, fitness magazines, or community bulletins can cost from a few hundred to several thousand dollars. Graphic design and layout will also be involved.

TV and Radio Ads

A local radio spot costs between $200 and $500, while TV spots can cost thousands. Producing a high-quality ad involves costs associated with scriptwriting, filming, editing, and possibly hiring talent. 

Event Sponsorships and Local Promotions

Sponsorship fees for events like races, health expos, and community fitness challenges can range from a few hundred to thousands of dollars, depending on the size and scope of the event. Associated costs include branded merchandise, banners, flyers, and other promotional items that help enhance brand presence at events.

Market Research and Data Analysis

Spending money on market research can help you effectively target your message. Surveys and focus groups will help you better understand your audience. 

Data analytics allows you to measure the success of your marketing campaign. Gym management software like Gymdesk reporting captures, tracks, and displays member, financial, and other gym business data. Gym reporting allows gym owners to understand their businesses’ performance in depth or at a glance.

Measuring the ROI of Gym Marketing

Analyzing your return on investment (ROI) ensures your marketing efforts produce the desired results. Let’s consider the key metrics that need to be considered.

Membership Growth: The ultimate goal of any marketing campaign is to grow your membership. Both signups and renewals indicate this. Calculate the cost of acquiring each new member through your different marketing strategies to identify the most cost-effective method.

Brand Awareness: Reach and impressions build brand awareness. Analyze how many people view your messaging through social media impressions across the various platforms you employ. You should also track how often your gym is mentioned in media, reviews, and online discussions. 

Engagement Rates: The higher the engagement, the more people demonstrate interest in and loyalty to your brand. Track this through comments, shares, and likes. You should also keep track of website visits, bounce rates, and time spent on pages. 

Lead to Member Conversion: Track how many leads, through free trials, inquiries, etc, convert into paying members. This will help you determine the success of your marketing funnels. 

Wrap Up

Gyms spend between 2 and 12 percent of their total revenue on advertising, usually traditional and online. To remain competitive in today’s market, it is critical that gym operators employ a range of strategies and carefully analyze their ROI to ensure that they are directing their marketing efforts effectively.