Creating an annual marketing budget is an essential task for every business. If you want your business to grow and thrive, you need to retain loyal customers and attract new customers who will hopefully become loyal customers. To accomplish this, you have to get the word out about the services and products you offer – and let people know why your company is the one they should choose. Without a sufficient marketing budget, you won’t be able to grow your business.
Creating an annual marketing
Being a successful marketer isn’t just about pitching special database exciting ideas and thinking strategically. It’s also about sticking to a budget, reaching new levels of growth, and choosing the most cost-effective option for your business.
In this article, we’ll look at typical marketing budgets – including marketing budgets by industry – so you can see how your budget matches up against your competitors. We’ll also explore how much of your yearly revenue you need to re-invest in marketing materials to see substantial long-term growth.
What’s a standard marketing budget percentage?
Deloitte’s annual CMO Survey reports that marketing budgets, as of February 2021, are about 11.7% of total the company-wide budget. This is still a record high over the last four years, but it’s a slight decrease from the 12.6% marketers unused and resource-heavy plugins/extensions saw in June 2020. Gartner’s 2020 CMO Survey supports that most marketing budgets are around 11% of the total company budget.
Your marketing budget depends on several factors – including industry, business needs, and company revenue performance – but these surveys provide a reasonable percentage of the amount to allocate for your marketing teams.
Depending on individual company goals, what channels/strategies marketing teams decide to invest in varies. Here are the top three budget priorities for most companies in 2020 – and these trends are predicted to continue beyond 2021.
- Web optimization – 73%
- Digital media and search – 65%
- Digital marketing – 57%
What about the marketing budget as it relates to overall company revenue?
According to the U.S.
The amount of revenue businesses allocate to marketing has steadily calling list climbed over the last 10 years. Today, the average marketing percentage of revenue is around 13% – compared to 8% in 2011.
On average, B2B Product and B2C Services allocate about 10% of revenue to marketing. However, B2C Product designates around 18% of total revenue, and B2B Services allocates roughly 15%.