Now that we’re aligned on how much to invest in marketing and where to allocate budget for digital marketing, which channels deserve bigger budgets than others? The answer: There’s no right answer.
Solving Digital Marketing Budget Allocation Digital marketing budgets for ecommerce brands will be far above the 57% average investment. This seismic shift doesn’t reflect the reality of the modern marketing team. And this number will jump by 16% over the next year. The CMO Survey reported in February 2022 that digital marketing spending accounts for 57.1% of marketing budgets. Hiccups in data privacy and identity only created a minor blip in the digital marketing attribution compared to its aimless brother, traditional marketing channels.
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Tracking, agility, full funnel impacts - all of these tremendous benefits to digital marketing give marketers a chance to prove the investment is valuable.
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But as consumer shopping begins and maintains online more than offline channels, the digital marketing investment has taken the lion’s share of the budget. Digital marketing versus traditional marketing has been an age-old battle (since the first Google ad impression was served) of the budget.
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Marketing budgets have been planned, but how to use that budget is where an agile marketing team can shine.
Budgets for staying competitive: 8%-11% overall revenue.Budgets for aggressive/high-growth models: 12%-15% overall revenue.This is a good rule of thumb for digital marketing budget allocation: As a consumer brand breaking into a new category this year, your marketing investment would be more aggressive than an ecommerce brand maintaining status quo. Which side of the spectrum depends on the marketing goals for the year and what stage of your business the team is supporting. The same report predicts this figure will rise further over the next year to 13.6%.Įxperts recommend investing between 5%-15% of the overall company revenue into marketing. Marketing leaders fight their way into the boardroom to preach the investment value in smart marketing.īut for any companies looking at the way to convince your board to build in a competitive marketing investment, here’s a shortcut formula to be successful in planning the right digital marketing budget.Īccording to The CMO Survey, marketing budgets as a percent of revenue increased to 10.3%, resetting to pre-pandemic levels. In many cases, marketing is a necessary expense rather than a smart investment. It’s often remarked, if only in marketing war rooms around the country, that to stay competitive, marketing requires more budget than most companies are willing to invest. But what is the right digital marketing budget to drive more sales on and offline? How Much to Invest in Marketing
A shattered customer journey doesn’t necessarily mean the marketing budget has to stretch farther than before. Specifically, what kind of digital marketing budget does it take to stay competitive in the new landscape of always-on digital. One question eCommerce and consumer brands are asking today is around finding the right budget for marketing.
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