What’s YOUR marketing budget?
“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” – Peter F. Drucker
Marketing is critical for your business. No matter what form it takes—social media, videos, ad campaigns, inbound marketing, print pieces, website redesign, or media buys—marketing allows you to promote your company, your people, and your products. Marketing lets you target your chosen audience and to better learn about your customers and their needs. It’s a way of uniquely communicating how you can help people save time and money. Marketing lets you show your customers the benefits of doing business with you.
A marketing budget is an investment. Given its importance to your bottom line and reputation, how much should you plan to spend on your 2015 marketing budget?
The answer is that it depends. It depends on your goals and your industry and your experience. Don’t worry if you’ve never had a formal annual marketing budget. Many small companies don’t even have established marketing strategies. Something they try this month may be replaced with something brand new the next month.
Metro Studios knows that great marketing takes time and a strategic vision. We have decades of experience helping a wide variety of businesses with all their marketing needs. We know how to most effectively use your marketing dollars.
So how much do companies typically spend on marketing? According to the most recent CMO survey of marketing budgets, most firms allocate a little more than 10 percent of their projected annual revenue for marketing.
Of course this number, an average, is a good rule of thumb for companies who simply wish to continue growing. However, if your business is introducing a new product or if you’re considering different types of marketing, data shows you should expect to spend closer to 20 percent of your overall budget.
In 2015, forecasters predict that marketing budgets will continue to grow, with 50 percent of companies planning an increase, according to Gartner’s Digital Marketing Spending report.
Their research showed 68 percent of respondents kept a separate budget for digital marketing, while the rest integrated all their marketing strategies under one budget umbrella. Because the reporting varied, it’s tough to tease out exact amounts spent on digital marketing. However, Forester research suggests that the average firm in 2015 will allocate 32 percent of their budget for digital marketing.
Your unique marketing goals will determine how you spend your marketing dollars. According to statistics from the CMO Council:
- Video advertising is growing faster than all other online ad formats.
- Digital ads will lead the way for global media growth in the next four years.
- The majority of marketing dollars will be spent on product marketing and management.
- Companies’ interest in content marketing is a growing trend. In their 2015 B2B report, the Content Marketing Institute found that 70% of B2B marketers are now creating much more content than they did a year ago.
At Metro Studios—whatever your budget—we’ll work with you to find just the right mix of marketing strategies to help you stand head and shoulders above your competition.