B2B Marketing's core role is to generate leads that convert to revenue. Therefore, it's self evident that investing in marketing is important to your business growth.
Well quite.
But exactly how much is enough? Business leaders are struggling to understand:
Here are some key statistics from a survey on marketing spending from a new Gartner offering called "Gartner for Marketing leaders."
The data is revealing. More money is being spent on marketing to attract and acquire new customers. The survey found that on average marketing budgets are increasing 6%. But this new cash comes with strings attached. The boss wants proof that the investment is generating additional revenue.
In 2012, on average 10.4% of revenue was spent on marketing.
This spending includes salaries and other internal and external costs both traditional and digital. But the range of spending varied widely from as low as 5% to greater than 15%. These variations are most likely a factor of:
On average the survey found that digital marketing represents around 2.5% of the company revenue or approximately 25% of the marketing budget, but this is increasing quickly. As tactics and techniques evolve identifying "pure" digital spend is becoming harder and frankly, less relevant as tactics merge.
The top 5 digital marketing spending categories are, in descending order:
Interestingly, considering the pervasive atmosphere of continual cost cutting in companies, the survey found the clear savings realised by switching to digital marketing are being reinvested back into further marketing activties rather than being pocketed.
Funds are being reallocated away from difficult to measure tactics towards more definitive lead generation tactics that contribute to revenue.
The survey found that up to 50% of digital marketing activities are outsourced. Finding and retaining resources to execute digital campaigns is tough especially as digital marketing and the skills required are changing so rapidly.
Marketing isn't new to outsourcing and managers are comfortable dealing with agencies, data and technology providers. Specialist skills include search, online advertising and social media to name just three. the evidence is that outsourcing as a percentage of spending is increasing.