The TL;DR (too long, didn't read) 👇
- Marketing budgets should match your business goals, so it’s really worth your time to figure out what you want to achieve. This can make a big difference.
- Most companies allocate 10-20% of their projected annual sales for marketing, so it’s important to stay up to date about what your competitors are doing.
- Wanting to jump in head first and see aggressve market growth? Dedicting 15% to 20% of your expected revenue dedciated to marketing is the way to go.
- The team at Excite Media is here to help you achieve your marketing goals—we’ve got your back.
What do I need to know about marketing budgets?
Have you ever wondered what your competitors are spending on marketing – or what’s standard in your industry? 🤔
It’s a question we get nearly every day here at Excite Media.
And the answer? Well, it all comes down to your goals 🎯
Running a digital marketing agency means we get to work closely with clients, helping them create, launch, and track their marketing strategies. So, we’ve gotten pretty savvy about what’s standard for marketing budgets across different industries.
We put this quick read together to help you out—no need to dive too deep into your financials just yet. 🏊♂️
What’s a good marketing budget?
Every business and market is unique, so consider this article more of a guide than a strict rulebook. From what we’ve seen and through independent research, most companies are setting aside around 10% to 20% of their forecasted annual sales for marketing.
For example, companies with a $2M turnover are typically investing about $200K to $300K annually, depending on their goals. 💰
A 10% budget is a good start to keep a strong market presence—think social media, website rankings, and more. But if you’re looking to shake things up or make a splashy rebrand, pushing above 10% can help you get there.
In marketing, you can absolutely reach for the stars. It just starts with knowing where you want to go. ⭐
However, if you’re new to marketing investments, we wouldn’t suggest diving straight into investing 10% of your revenue – it’s best to test the waters first.
Gone are the days of relying on your Yellow Pages ad to bring in calls (remember those?). Now, marketing is all about testing, tweaking, and zooming in on the strategies that get results. 🧠
The three tiers of marketing budgets
1. Maintaining market share: 9 – 10% of your expected revenue.
To keep your current clients happy and engaged, budgeting around 9% to 10% of your expected revenue for marketing is a smart move. ✅
And don’t forget, marketing isn’t just about bringing in new customers. This budget is essential for maintaining your slice of the pie and keeping up with others.
If you don’t allocate this budget, start-ups and hungrier competitors will take the space you had invested in – and your visibility can disappear altogether. In essence, a 9% marketing budget is a must to keep your brand ahead of the game. 🏃♂️
2. Moderate market growth: 12% of your expected revenue.
According to a Forrester report, 61% of B2B marketers are looking to boost their digital spending compared to their marketing communication budgets. This means many businesses are gearing up to invest in new tools for growth. 📈
With a 12% marketing budget, you can not only maintain your current position but also set aside 3% to 5% for some exciting new areas you might not have explored yet. Think email marketing, social media, loyalty programs, and creating dedicated product or service pages to boost those conversion rates; the possibilities are endless. ♾️
Depending on your industry, a 12% budget gives you the chance to keep an eye on their competitors and adjust your marketing efforts accordingly.
Why is this important? Well, if they start ramping up their marketing efforts, you can quickly adapt and defend against their push. If they go to the top of Google for a new product, you can challenge them. ⚔️
3. Aggressive market growth: 15-20% of your expected revenue.
Imagine if your three biggest competitors started spending $300K per year on advertising. How would that shake up your market share? 💥
Now picture them launching bold pay-per-click campaigns, taking over Google, Facebook, and Instagram. Your customers would see their products and services everywhere, making it all too tempting to give them a try. Not a good sign for your business, right?
But here’s the good news: you can use those same strategies they are using and assert your dominance in your industry. With a marketing budget of 15-20%, you can really make your mark. It all comes down to your goals. 🎯
What marketing budget is right for you?
Growing a company can be a challenge. At Excite Media, we have a dedicated team working hard to keep our website thriving at the top of Google. That’s great in itself, but just because you can find us doesn’t mean you really know us. 👀
That’s where marketing comes in—it’s essential for building brand awareness and positioning your business as the most trusted name in your market.
Let’s make sure your audience gets to know you and your business. 💚
Marketing can definitely feel like a puzzle, and many businesses end up pouring money into channels that don’t really pay off. 🧩
To find out what works best for your business, it’s super helpful to chat with the team at Excite Media, who truly lives and breathes digital marketing. We’ve got clients generating 30-60 leads a day through their websites. How cool is that? 🤯
Marketing totally works. You just have to sit down, work out your goals, and create a strategy that gets you where you want to be—whether that’s aiming for the moon or keeping up with the crowd.
Need a hand with your digital marketing? We’d love to chat with you about what we can do for your business 👋