Research by The CMO Survey has found that 11.1% is the average budget spent on marketing. As shown in the chart below, 11.1% on average is how much businesses are spending n marketing. If your business is spending less than this, it's worth considering whether there are missed opportunities.
Across sectors, the research has found that marketing spend is mixed, but there are a number of industries that spend considerably more than others. Shown below is the percentage of budget spend on marketing in each sector listed. Energy, healthcare, media and tech industries are leading the highest average marketing spend
Digital marketing also dominates marketing spend across B2C and B2B sectors when compared to "traditional" marketing spend.
Marketing is also around 7.9% of revenues, showing similarities between budget assigned and percentage of revenue spent being quite similar.
Marketing spend based on revenue is highest for customer services industry and education.
It makes sense that marketing spend based on revenue and marketing spend assigned are close, not a hugely different as it shows how businesses are using revenue estimates to assign marketing and it shows the importance of marketing to businesses.
By Robert Jones
Robert Jones is a specialist in CRO, UX Research, insight and digital Marketing. He is CRO Analyst at Enjoy Digital. He has a Psychology Masters of Research, has run large digital marketing campaigns to build research panels and worked in insight roles for Vision Critical, ASDA and WhatUsersDo. He also managed all of Smart Insights member resources and published several guides including "How to conduct Persona Research" as well as contributing over 100 blog posts to the Smart Insights blog. When he isn’t working on marketing campaigns he is most likely eating authentic Italian food or planning his next short trip. You can connect with Robert on LinkedIn or follow him on Twitter.
This blog post has been tagged with:
Marketing strategyTurbocharge your results with this toolkit containing 11 resources
The Digital Marketing Strategy And Planning toolkit contains:
Start your Digital Marketing Plan today with our Free membership.
Recommended Blog Posts
If you want to develop a strategy, where do you start? Well, it can be summarised in two or three sides of A4 in a table linking strategies to SMART objectives and KPIs to make sure you’re on track…
An example of reviewing your marketing capabilities using the McKinsey 7S framework The McKinsey 7S model is a useful framework for reviewing an organization’s marketing capabilities from different viewpoints. Developed by Tom Peters and Robert Waterman during their tenure at …..
Evaluating technology options for innovation in marketing – do you know your Hype Cycles? If you’re involved in marketing strategy development, you will be constantly making judgments and reviewing with colleagues which digital technology innovations are most relevant to your …..
