Ensure you’re squeezing value out of every dollar spent.
5 min read
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Marketing and advertising budgets vary widely across organizations. An often-cited statistic from the U.S. Small Business Association suggests spending about 8 percent of gross revenue on marketing if you make under $5 million annually and your net profit parks at 10 to 15 percent. However, a 2016 survey of 168 Chief Marketing Officers found that firms spent a median of 10 percent of their budget on marketing, but some spent as much as 40 percent. For every projection on how much to spend, there’s a company breaking the rules and still achieving success.
A common beginner error is to allocate the majority of your marketing budget to paid media advertising. Rather than going all-in on top-of-funnel visibility, consider putting a portion of budget toward engaging already-aware consumers