What should you spend on your marketing?

In our strategy consultancy we have observed that client acquisition tactics and marketing investment vary greatly, from sector to sector and from one business to the next. Marketing spend is like a box of chocolates. The US-based CMO Survey of August 2017 provides some interesting insights.

While business-to-consumer (B2C) businesses – especially product-based companies – spend freely on marketing, business-to-business (B2B) companies often underinvest. However, given the efficiency offered by digital assets such as web and search engine optimisation (SEO), the tide is turning. Even B2B service companies are expected to spend 11% more on marketing than they did in the recent past.

Marketing spend as a percentage
of revenue by company type

Overall 6.9%
B2B product 6.4%
B2B services 6.8%
B2C product 8.6%
B2C services 7.3%

Marketing investment varies
dramatically by industry.

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