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When running a business, one of the most concerning components in your budgeting is how much is the 2021 B2B marketing spend by industry.
According to the experts in the 2019 CMO Survey, there's an actual difference when it comes to B2B marketing budgets. The long reports have told us everything we need to answer this sort of question.
For the B2B product firms, the marketing budgets could be up to 10.3% of the total company budget.
For the B2B service, the marketing budget could be up to 11% of the total company budget.
But this percentage will be relative depending on the type of industry that the business is running. You might have a particular strategy to arrange the budget for your company’s marketing. The B2B marketing budgets will determine the importance and relevance of digital marketing in your business agenda.
For instance, let’s say that your company has a long sales cycle. Then you would see this as a high-cost investment and high-consideration purchase.
Keep in mind that the statistics that I shared above took place before the pandemic. Since then, I have not found any updates on that. But according to one of the best software engineering companies, they increase their budget to 25% to 50% of total marketing investment spent for the digital one. What does it mean? They allocate the offline marketing budget to online marketing because fewer people are captivated by conventional marketing during the pandemic.
To give you a clear idea, here is the number which I took from a software engineering company.
They have $40 in revenues.
Then they use 9% of the revenues for marketing.
Around 25-50% of the marketing budget is focused on digital.
Let’s say they are spending 25% of the marketing budget.
So the real number would be:
$40M x 0.09 x 0.25 = 900k
Annually, they would invest $900k for digital marketing. Keep in mind that it is highly possible if your company has such a long complex sales cycle.
But if your company sales are much simpler, the case will be different. There could be a 35% to 75% range of digital marketing spend. And you could do the calculation as I’ve mentioned above.
There are some takeaways though. It is important to consider the resources when you have several objectives. From what I have seen for years. The biggest challenge that the B2B companies struggle for B2B marketing budgets is the insufficient resources.
To avoid any mishap because of the lack of resources, there are at least two things you can do.
First things first, make sure you have enough staff and skillful professionals to get on the digital marketing. With enough staff, you can make sure that the timelines are met. Hire the remote team if needed. Do not proceed if you don’t have enough staff to handle such a workload.
The second thing to do is to make sure that you have enough budget for digital marketing. With an adequate budget, you will be able to retrieve the data to conclude the results and your company’s ROI.
To maximize your budget, assess your sales cycle, recognize your audiences, and invest properly.
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