How much should your team spend in 2023? [By Industry]

As a marketer, you are always pitching new ideas to your team. And you’re also faced with the frequent follow-up question, “How much do we need to execute with our marketing budget?”

Marketing budget plan for 2023, person making notes on budget draft

Click here to download a free marketing budget template.

Ultimately, being a successful marketer isn’t just about thinking strategically. It’s also about adhering to a strict budget, achieving new levels of growth, and choosing the most cost-effective option for your company.

We’ll explore how you can do this and determine how your budget stacks up against competitors. Here’s what we’ll cover:

Read the full piece for more. You can also hear how HubSpot’s SVP of Marketing will spend its $10 million marketing budget in the podcast below.

Why do you need a marketing budget

Today’s marketing landscape is complex. With a recession looming, budget cuts have become commonplace and poorly performing marketers quickly fall under the ax. Creating a comprehensive marketing budget is your silver bullet to avoid these consequences and have the cash to execute your marketing strategy.

Developing a marketing budget also helps you:

  • Prioritize investment in projects.
  • Allocate money for software purchases.
  • Compare your year-on-year progress.
  • Allocate money to projects in advance.
  • Justify the importance of specific projects.
  • Calculate ROI from your marketing projects.
  • Show the value of proposed marketing projects to your superiors.
  • Show positive ROI, which can help you get a better budget in the future.
  • Allocate funds to freelancers and full-time hires who will execute your strategy.

within a specific marketing budget

Marketing will comprise approximately 13.6% of a company’s total budget in 2023 Deloitte’s Annual CMO Survey, This is 3.9% higher than the previous two years.

How much to spend on marketing, Deloitte marketing budget chart by year and percentageimage Source

Even in a recession, many marketers expect their annual budgets to increase in 2023.

in HubSpot survey Of the 1,000 marketers, 47% of respondents reported that their budget would increase. Another 45% expect their budget to remain roughly the same in the new year.

How much to spend on marketing, how marketers expect their budgets to change in 2023

The priority of marketing channels is also changing. Traditional advertising will be less than 2023 marketing budget, deloitte report, a decrease of 0.7%. Instead, marketers are planning to spend more money on social media and new media platforms.

For example, marketers are planning to invest the most in Facebook marketing in 2023. While many marketers already have a strong Facebook strategy, 25% of marketers surveyed by HubSpot will invest in the platform for the first time in the next year.

How much to spend on marketing, which platforms are planning to invest the most next year

Furthermore, video will be a major investment in many marketers’ budgets. HubSpot found that 91% of markets plan to increase or maintain their investment in YouTube over the next year.

Meanwhile, on TikTok, 56% plan to increase their TikTok investment in 2023 – the highest increase of any social media app. Another 34% plan to maintain their current TikTok budget.

Influencer marketing is another lead-generation strategy worthy of investment. According to Status of our Marketing ReportsIn 2022, 68% of marketers work with influencers and 88% have a dedicated influencer marketing budget.

This trend will continue in 2023 as well. In fact, 89% of marketers plan to increase or maintain their investment in influencer marketing over the next year. An additional 17% would invest in this marketing strategy for the first time.

We find out how companies want to spend next year’s budget. Next, you’ll learn how marketing spend relates to a brand’s revenue. Let’s dive in

Marketing budget as a percentage of revenue

The amount of revenue businesses allocated to marketing has grown on average over the past 12 years 13.8% of total company revenue in 2022, that’s over 5% increase Since 2011.

B2B product industries, on average, allocate roughly 7.8% of revenue for marketing, This is similar to B2C services (6.5%) and B2B services (5.9%). Allocate B2C products highest amount 15.1% of total revenue.

Small businessmen are also spending. one in Survey of 85 Small Business Owners and Marketers52% said they are spending $5–$15,000 per month on marketing.

What Percentage of Revenue Should Be Spent on Marketing, Marketing Budget Spending Chart for Small Businesses

image Source

Decisions regarding marketing budget allocation are largely industry specific. To determine a more accurate figure for your business, let’s explore marketing budgets by industry.

marketing budget by industry

Deloitte recently conducted a survey percentage of revenue industries should spend on marketing, Here’s the data.

industry

marketing budget

(% of company revenue)

Banking & Finance,

Insurance, and Real Estate

8%

communication medium

10%

consumer packaged goods

9%

consumer service

6%

education

3%

energy

1%

Health care

18%

Production

13%

mining and construction

3%

retail Wholesale

14%

service consulting

21%

technology

21%

transportation

6%

As a marketer, it is important that you use these percentages as a benchmark, especially for industries that allocate less marketing budget.

If your industry is reluctant to spend on marketing initiatives, this is your team’s opportunity to shine.

Once you’ve explained to higher-ups what you need to execute your top strategies, you’ll easily outshine others in your industry and refer your company to other teams on how to do marketing. Should do

6 expert tips for getting the most out of your marketing budget

1. Understand your customer journey.

The journey to a customer isn’t as simple as Googling a term, jumping on an email list, and then converting. The journey is full of twists and turns.

Figuring out how your customers go from product awareness to purchase varies between industries. What works for B2B brands may not work for B2C or small businesses.

That’s why David Huse, B2B Performance Marketing Manager The Outloud Group, says you should take the time to understand your customer journey before spending a single penny of your marketing budget. If you invest in this research first, you will uncover:

  • Which channels to spend your budget on?
  • What are the platforms to reach your target audience.
  • What messages will resonate with them.
  • What creative will entertain them and educate them.
  • What measures will convert them.

Understanding your customer journey is critical to unlocking the highest ROI efforts. Done right, it guarantees the best use of your marketing budget.

2. Hire marketing agency wherever required.

It can be difficult to oversee multiple marketing projects without help – even when you have an in-house marketing team.

In addition to the time required to hire, train, and join the team, you’ll be paid a salary and provided with some benefits. It can all be a stretch if your budget can’t cater to a huge team or if you don’t have the time to supervise them. where is it marketing agencies come in.

While agencies are not cheap, they eliminate some of these challenges and they can act as an extended arm of your team. Partnering with marketing agencies also gives you access to a team of experts who can help you achieve your goals faster and won’t burn your marketing budget.

3. Get an in-house marketing team.

relying on the agency to run All Your marketing budget is not being used wisely among your projects. Marla Malkin, Vice President of Marketing and Strategic Partnerships Ativo ERPAgree with this.

4. Invest in repurposing and updating content.

Charlie Southwell, Marketing Director and SEO Specialist Let’s talk about talentNote that creating unique and valuable content is expensive. For this reason, Charlie’s team tries to reuse everything they build.

Their first step is to create evergreen content that will remain valuable for at least two years. After creating these assets, the team reorganizes and promotes them. multiple content formats,

If you’ve published some evergreen assets in the past, consider updating them. In addition to providing current information to your audience, a content update can move your pieces up the SERPs.

The great thing about repurposing and updating content is having a way to re-promote your assets several times a year. In the words of Charlie, “Not doing so is a missed opportunity that prevents content from achieving substantial benefit and maximum value from your marketing budget.”

5. Prioritize poor performing channels.

Understanding the channels that drive the most revenue for your business is critical to marketing budget optimization.

Businesses must continually measure their campaigns to uncover low-performers, says Siddharth Kumar, director of product marketing Xoprize Systems, Doing so will help optimize spend in the right direction and eliminate campaigns that generate no ROI.

If you have data that some poorly performing channels may still work, use those channels for the experiment and apply 70-20-10 rule While budgeting for them.

Here, 70% of your marketing budget goes to proven strategies, 20% to new strategies, and 10% to experimental strategies, which may uncover opportunities for future growth.

6. Constantly re-evaluate your marketing strategy.

A marketing strategy that is done correctly will have objectives and significant results that adhere to the following smart framework, This is important for budget optimization, as SMART goals and metrics help you track progress and identify the channels and campaigns that are working.

“Continuously reviewing and re-evaluating your marketing strategy helps you know when to stay the course or pivot,” says Thomas Simon, Marketing Manager monitask, “It lets you use effective strategy and not blindly follow a particular plan without data or results to back your decision.”

But how often should you review?

Corey Haines, Co-Founder swipe right, suggests that marketers review budget allocations biweekly or monthly. “Regular reviews help you cut unnecessary spend, reallocate to high-performing campaigns, and decide whether to increase or decrease variable costs like ad spend,” says Corey.

Manage your marketing budget properly

Now that you know the specific percentage of the marketing budget by percentage and revenue, the next step is to learn how to manage your marketing budget.

Check out our guide to managing your marketing budget to refine your strategic plan for 2023.

Editor’s note: This post was originally published in March 2021 and has been updated for comprehensiveness.

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