Plenty of business owners and their related decision-makers consider the term ‘marketing’ as an intangible expense. Yes, there are results to be achieved, but it seems nearly everybody wants to pay little to nothing to reach said business growth goals.
Want to find out how much of your business’ revenue should go towards marketing? Find out with the Perth digital marketing agency, Studio22.
Show me the numbers!
Marketing promotes your business, in more ways than one, and is a fantastic way to generate future leads and sales. That’s if you choose the right digital marketing agency, that is.
To answer the question of how much of your business revenue, look to a percentage not a dollar figure, and examine the data from the professionals:
- In February 2021, Deloitte conducted a survey which demonstrated surveyed companies spent roughly 13.2% of their revenue on marketing endeavours
- A 2020 survey by Gartner revealed similar stats, finding marketing budgets equating to approximately 11% of total company revenue
- B2B product companies often use the least amount of revenue at 10%
- Whereas B2C product companies often saw the highest at 18.6%.
Every business is of course, different from the next – however, it’s safe to say that 10-12% of business revenue is a great ballpark to aim towards.
What can influence your percentages?
There’s plenty of contributing factors and scenarios that warrant different marketing spend percentages.
What are they?
- High-growth companies
These companies generate more leads and sales, resulting in higher revenue. Likely, a greater focus and marketing spend is a key contributing factor.
- Competitive industries
If you’re fighting hard with your competition, you need to have the edge. Higher spends are necessary to beat the competition at their own game.
- Businesses who are rebranding or launching something new
- Recession or global pandemic times
It may seem counterintuitive, but you need to show your audience you are still there for them.
It’s times and scenarios like the above that call for more than the 10-12% standard of revenue for marketing spend.
Why marketing spend matters
Marketing plays an essential role in shaping what the future of your business will look like. If nothing else, marketing now is investing in future growth.
Don’t settle for average, or worse the bare minimum. Sure, you and your team can attempt DIY marketing ventures, but that only takes staff away from their primary roles and responsibilities.
Why not leave your business marketing to those who have the time, skill and motivation to do so?
We’re here to help
Studio22 is a dedicated Perth digital marketing agency who empowers business owners on the daily, providing strategies to gets products and services seen by the right people.
Whether you’re tired of doing your marketing yourself, not happy with your current agency, or starting from scratch – we’re here to assist, to devise, launch and manage your business’s marketing needs.
Looking for a digital marketing agency in Perth?
Contact Studio22 today for a friendly, reliable and results driven agency of experts, ready to take your business to new heights.