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Marketing Budget How

Date post: 12-Apr-2017
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LOOKING FORWARD WITH A PLAN! GET TO THE HEART OF IT I am going to tell you how to budget for marketing and where to invest your marketing dollars. YOU HAVE TO SHOP AROUND COMPUTERS ARE YOUR FRIENDS, FOR FINDING MORE FRIENDS YOUR IDEAS MEAN EVERYTHING How much should I budget for marketing in 2017? 1
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Page 1: Marketing Budget How

LO O K I N G F O RWA R D W I T H A P L A N !

G E T T O T H E H E A RT O F I T

I am going to tell you how to budget for marketing and where to

invest your marketing dollars.

YO U H AV E TO S H O P A RO U N D

C O M P U T E R S A R E YO U R F R I E N D S, F O R F I N D I N G

M O R E F R I E N D S

YO U R I D E A S M E A N E V E RY T H I N G

H o w m u c h s h o u l d I b u d g e t

f o r m a r k e t i n g i n 2 0 1 7 ?

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Page 2: Marketing Budget How

• How much are companies spending on marketing? • Where are marketing dollars invested offline and online? • What marketing strategies and tactics are getting results?

The answers to these questions come from a few reliable sources: • an annual survey of Chief Marketing Officers (CMOs) from a variety of industry sectors

and firm sizes • a leading research group report about interactive (digital/online) marketing trends and

predictions  • other leading digital marketing research firms.

This post is broken down into the following sections:

1. Overall Changes In Total Marketing Budgets 2. How To Allocate Marketing Budgets Across Channels 3. Which Tactics Are Getting The Best Results? 4. Changes in Traditional Versus Digital Marketing Spend 5. Expected Changes In Marketing Budgets 6. What Percentage of Marketing Budget Spent On Digital? 7. How Much Should Your Firm Budget For Marketing?

SIMPLE THINGS TO CONSIDER OFF THE BAT

Page 3: Marketing Budget How

BUDGETS ARE CHANGING - OFFLINE AND ONLINE

H O W S H O U L D I A L L O C A T E A C R O S S C H A N N E L S ?

ESSENTIAL THE DATA

IN 2016, THE AVERAGE FIRM WAS

EXPECTED TO ALLOCATE 30% OF

THEIR MARKETING BUDGET TO

ONLINE. THIS WAS SLIGHT GROWTH.

THIS RATE IS EXPECTED TO GROW

TO 35% BY 2019

-MOST OF THAT WENT TO SEARCH,

-FOLLOWED BY DISPLAY

FYI ‘Mobile’ is a redundant term

now. No one is dumb enough to

skip mobile when they say ‘digital.’

Page 4: Marketing Budget How

WHAT’S MY RE TURN ON INVE STMENT HERE? 4

TRACKING IS NEARLY

IMPOSSIBLE

-BUT INBOUND MARKETING

CAN MAKE IT WORK!

How marketing funds are ultimately allocated is driven by the nature of the business, the competitive marketplace, and how target customers behave through the buying funnel.

Page 5: Marketing Budget How

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M a r k e t i n g t e c h n o l o g i e s a n d a u t o m a t i o n a r e p r o v i n g e f f e c t i v e

a t b r i n g i n g t o g e t h e r t h e m o s t e f f e c t i v e m a r k e t i n g t a c t i c s

( e m a i l m a r k e t i n g , o r g a n i c s e a r c h , a n d c o n t e n t m a r k e t i n g )

t o a c h i e v e b e t t e r r e s u l t s .

2017The first year Digital

outspends TV

E V E R Y T H I N G I S C H A N G I N G , Q U I C K L Y.

O M N I V O R E S A L W A Y S E A T .

Page 6: Marketing Budget How

Digital spend is only a portion of total marketing spend for most businesses. For 50% of businesses surveyed, digital represents less than 40% of total marketing spend.

Businesses who rely more heavily on the internet to generate sales (e.g. an ecommerce business), invest a greater percentage of their marketing budget towards digital.

For more traditional businesses, which rely on offline AND online activity to fill the sales funnel, a healthy mix of marketing investment is to be expected. Radio, TV, Newspaper are now search, email and social.

Single digit changes in marketing budgets are standard, usually 4-8% unless it’s a recession, you’re a new company looking to grow or something crazy happens.

I A M N O T A W E B C O M P A N Y,

B U T W E E X P E C T E D C H A N G E

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Page 7: Marketing Budget How

COPYING IS A FORM OF FLATTERY

W H A T P E R C E N T A G E O F R E V E N U E I S M Y B U D G E T ?

T H I S N E E D S T O B E S A F E . W H A T A R E O T H E R

P E O P L E D O I N G ?

TAKE AWAYS

THE DATA

• For B2B firms, marketing budgets as a % of firm revenue fell within the 7-8% range

• For B2C firms, marketing budgets as a % of firm revenue were around 9%.

• Businesses generating less than $25 million/yr in revenue were the only business to spend more than 10% of revenue on marketing. 

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Page 8: Marketing Budget How

T h e r o a d b e l o n g s t o y o u .

I n n o v a t e w h e r e y o u c a n .

M i n i m i z e r i s k . M a x i m i z e o u t c o m e s .

T h e r i g h t p l a n s w i l l k e e p y o u o n t r a c k .

c o n t a c t D a v i d Z u c k e r m a n f o r c o n s u l t a t i o n .

d k z u c k e r m a n @ g m a i l . c o m / 3 1 0 . 9 8 5 . 3 5 9 4

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