28 MAY 2025 WorldWide Drilling Resource® Drilling Into Money Not Boring by Mark E. Battersby Slashing Marketing Costs In today’s economy, marketing the services of a drilling contractor and the products of a dealer or supplier is more important than ever. Even more important is the question of how the business can afford to mount and maintain a marketing campaign. Fortunately, income tax write-offs can help reduce those costs. Tax deductions can substantially reduce the out-of-pocket cost of marketing the drilling business. Deductions can include the cost of not only advertising but also marketing expenses, so long as they are directly related to generating business income. In addition to traditional advertising expenses, deductions for marketing includes the cost of such things as creating and maintaining a website. It’s often said the only business that doesn’t need a website is a business that doesn’t need customers or clients. So long as the main purpose of the drilling operation’s website is to advertise and market the business, the cost of designing, developing, and creating can be classified as tax-deductible marketing expenses. Tax deductions can also be claimed for website hosting, website software, website maintenance, and ongoing website content creation. And, don’t forget attracting customers and prospective customers to that website. Tactics for improving the website’s SEO, short for “search engine optimization,” rankings is a core marketing strategy for many businesses. Thus, the costs related to improving and managing a website’s search process are eligible business expenses. SEO helps search engines understand a website’s content and helps users find the drilling operation’s website. Naturally, there are exceptions such as the computer hardware hosting the website is a capital expense, not a currently deductible marketing expense, and must be depreciated. If the website is not used primarily for advertising, its cost is not a marketing expense. The marketing budget of any business can tie up a lot of capital, making it critical to take advantage of every possible tax deduction. Managing expenses weekly or monthly, rather than once a year, is a good way to ensure maximum write-offs make it to the annual income tax returns. Marketing expenses include the costs associated with promoting the drilling business. Marketing expenses also include costs related to website creation, maintenance, SEO, along with attendance at trade shows or other networking events. Finally, keep in mind that tax laws and regulations can and, in all likelihood, will change. Staying updated on any new deductions or limitations which might impact on the drilling operation’s marketing expenses is important. Naturally, professional advice is strongly advised. Mark Mark E. Battersby may be contacted via e-mail to michele@ worldwidedrillingresource.com
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