Marketing is a crucial aspect of any business, but how much should you spend on it? Unfortunately, there is no one-size-fits-all answer to this question. The amount you should spend on marketing depends on several factors. Here we highlight the key takeaways from recent research published by Deloitte and Hubspot.
Guidelines for Marketing Budgets:
- Marketing budgets should be a percentage of your revenue.
- B2B companies should spend between 2% and 5% of their revenue on marketing.
- B2C companies should spend between 5% and 10% of their revenue on marketing.
- According to Deloitte’s Annual CMO Survey, marketing will comprise roughly 13.6% of a company’s total budget in 2023, up 3.9% from the two previous years.
- New businesses usually allocate between 12% and 20% of their gross revenue on marketing, while established companies spend between 6% and 12%.
- Traditional advertising is becoming less popular, with marketers focusing on social media and new media platforms.
Setting Marketing Goals:
- Setting measurable and specific marketing goals is crucial.
- Identify what needs to be done and how much investment will be required to achieve those goals.
Outsourcing to a Marketing Agency:
- If overseeing multiple marketing projects becomes challenging, consider outsourcing to a marketing agency.
- Working with marketing agencies can eliminate challenges and function as an extended arm of your team, giving you access to a team of specialists who can help you achieve your goals more efficiently while not wasting your marketing budget.
When it comes to how much you should spend on marketing, there’s no magic number. However, by following these tips and prioritizing your marketing channels correctly, you’ll be able to make the most of your budget and achieve your marketing goals. If things become to challenging or simply unsuccessful when done in house, consider outsourcing to an agency.
Join us on our next Lunch & Learn FREE webinar event for a live discussion & Q&A with Phase 2 Founder & Director ‘Elliot Zissman’ and Marketing Manager ‘Paul Thompson’ as they consider the question: How much should you spend on marketing?
DATE AND TIME:
Tuesday 7th, March, 2023.
12.30 pm London time
Duration: 30 minutes