How much will we invest in Marketing in 2022?

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When any young marketing professional starts his or her career in a company, he or she usually comes with great and creative ideas for running campaigns.

It is often thought that the company's financial management will accept any campaign idea if it is backed by an exhaustive study that ensures the return on investment. Until management asks us: How much is this going to cost us? Then we realise that ROI may be the most important concern, but by no means the only one to take into account.

Companies need professionals who, beyond their creativity and ability to think strategically, are able to stick to the available budget and achieve the best results by choosing the most appropriate options for the company.

In this article, in addition to comparing different marketing budgets from different sectors so you can see how much your competition is investing, we will try to establish what percentage of your business's profits you should reinvest for a solid long-term strategy.

What is the percentage to invest in a typical marketing budget?
In February 2021, a Deloitte study conducted among marketing and communications directors established that marketing spending represents 11.7% of the company's total spending, the highest percentage in the last four years (except for the period from March to June 2020, which due to the pandemic reached 12.6%).

On the other hand, a Gartner study among CMOs in 2020 confirmed that the percentage of expenditure represented by marketing activities is around 11% on average.

How much budget should we ask for for marketing?
While we could stick with this 11% figure, we also need to consider several factors such as industry, sales performance, and business needs before deciding how much to allocate to your marketing team .

We must also take into account the type of strategy and channels we will use depending on our objectives. For example, in 2020, 73% of companies invested in improving their online presence and website, compared to 20% who admit to having invested in machine learning and/or automation .

Web optimization, digital media, search engine advertising and emailing were priority aspects that determined the 2021 budgets and it is not expected that this will be different in the medium term.

However, the data we have discussed so far refers to the percentage of the marketing budget in greece mobile phone number list relation to the company's total budget, but what percentage should it be in relation to income?

Marketing budget based on profits
The revenue that companies allocate to their marketing strategy has been increasing in recent years, with the average percentage of marketing revenue at around 13% in 2021, compared to just 8% in 2011.

B2B product companies allocate on average approximately 10% of their revenue to marketing , a similar proportion to B2C services (10.1%). On the other hand, B2B services and B2C products allocate higher figures of 15% and 18%, respectively.

In the United States, the main association of SMEs ( The US Small Business Administration ) recommends that companies with profits between 10% and 12% and less than 5,000,000 dollars in turnover, invest between 7% and 8%.