Whether you are a B2B product company or a B2B service firm, you and your competitors are spending between 10.4% and 12.6% of your company budget on marketing. But, this can be misleading and may not be the best way to plan your own B2B marketing budget.
When one drills down into specific industries, the numbers can change rapidly. For instance, the manufacturing sectors spends around 6% of its revenue on marketing. Oil, gas, and chemicals companies spend 0.5%. Startups spend around 5%.
So, knowing these stats can help you to determine what is the right budget allocation for B2B marketing. But, you must also look at the allocation of the budget and its effectiveness as well. How your marketing dollars are allocated is as important as how much you spend.
Some things to consider as you plan your budget
According to Forrester, B2Bs will spend around 42% of their marketing budget online versus traditional ‘offline’ channels. And this is only going to grow. Interestingly, online search will begin to decrease in value and marketing budget allocations. While search decreases, content, video, and social media will grow as a percentage of budgets.
Content marketing is increasing to about 25% of marketing budgets. More than 75% of marketers indicate a strong commitment to content creation as a part of their marketing activity.
Ultimately, analytics will play a greater and greater role in marketing budgets. And setting up and managing the analytics has a cost of its own, whether it’s the added cost of platform modules dedicated to that purpose or a separate platform/third-party..
The right budget for your B2B will be driven by your goals and needs
Market-wide metrics and industry sector spending trends might give you a sense of where you might start budgeting, but each business is unique. A new product launch might cause you or a competitor to allocate more. A top-market position might mean a lower budget makes sense. There is not a ‘cookie cutter’ formula for determining a budget.
If you are trying to determine your budget, it makes sense to look at it in context – how it aligns with your business strategy and what you need your marketing to do. And we can help you with that process. Contact us today to begin a discussion on your next marketing budget planning.