19 May Marketing Budget
We get this question 100% of the times, especially from smaller businesses- how much should I spend on marketing?
Your budget is in your marketing department’s top 3 super-power elements, along with your audit and strategy.
There are various numbers cited online, but sticking to one and using it as a benchmark for your efforts will help you start. Each company, product and unique attributes dictate the success of marketing campaigns. Furthermore, deviating from industry benchmarks based on a strong belief and leading with a strategy is the right decision for your company and speaks volumes about your unique approach. You need to own your brand and marketing efforts!
We have combined knowledge and research-based data from Hubspot, SalesForce, BDC and various other sources to provide a quick snapshot.
Few things to consider:
1. How much revenue do you want to achieve?
2. How much time are you ready to dedicate?
3. Do you know your market and customers?
4. Are you in the B2B or B2C business?
5. Are you service or product-focused?
6. How long have you been in business?
7. Do you have the right team?
8. Do you know the competition?
New businesses with 1-5 years should allocate 12-20% of their revenue to marketing; 6-12% if older than 5 years.
Set aside at least 13% – 22% for consulting services and agency fees.
An average cost for a well-defined Marketing Strategy starts at $10,000 -$40,000.
B2C Companies Marketing Budget Breakdown:
- People 17%
- Technology 21%
- Advertising 23%
- Content 18%
- Research 16%
- Others 6%
B2B Companies Marketing Budget Breakdown
- People 14%
- Technology 17%
- Advertising 18%
- Account-Based Marketing 16%
- Content 14%
- Research 14%
- Others 6%