As Q1 of 2023 comes to a close, you may be wondering if your marketing budget is adequate or overkill. So, just how much should you spend on digital marketing in 2023? Well, that answer isn’t cut and dry and is more of a range than a specific number. It really does depend on a multitude of factors. Keep reading to gain clarity and find out if you’re on the right track.
Size and Sector Matter
As stated before, a lot of different factors determine how much you should spend on marketing. One of the most important is your economic sector. Are you a B2B product, B2B service, B2C product, or B2C service? According to the September 2022 CMO Survey, B2C companies continue to spend more on marketing than their B2B counterparts.
Also, for a small company with less revenue, your marketing budget will likely take up a higher percentage of your revenue than a well-established corporation with more brand awareness and income.
This is also true for new businesses. In today’s digital age, there’s really no way around:
a) Spending an adequate amount of money on marketing to find your audience and gain customers; and
b) investing in digital marketing that compliments your traditional marketing so your business can thrive.
The CMO survey separates marketing spend into two categories: as a percentage of the total firm budget and as a percentage of company revenue. According to the last CMO survey of September 2022, B2B firms’ marketing budget hovered between 6-8% of revenue and between 9-10% of the overall firm budget.
For B2C companies, these percentages are a little bit higher, as to be expected. For B2C companies, the marketing budget was between 8-14% of its revenue and between 17-20% of the overall company budget.
Your Digital Marketing Investment
Within your marketing budget, you’ll also need to decide how much you should allocate for digital marketing. Although the digital marketing budget for companies, both B2B and B2C, has continued to grow over the years, it tends to take up more of the marketing budget for B2C companies that rely heavily on e-sales simply because that’s where their customers find them.
Additionally, factors like the local market, growth goals, industry, and company size affect how much you should budget for digital marketing. According to the 2022 CMO survey, B2B firms invested between 55-58% of their marketing budget in digital spending, and B2C companies invested between 58-62%.
Get Help with How Much You Should Spend on Marketing
We understand that marketing can sometimes become an afterthought in the busy day-to-day operations of running your business. But it can truly make the difference between your company merely surviving, thriving, or going to the next level
Contact us for a free fact-finding meeting where we don’t pressure you into signing any contracts or doing business with us. We just want to show you what’s possible with the help of our digital marketing experts. Give us a call today!