Aug 6, 2018 By: Drive Digital

The percentage of revenue spend on Marketing depends on:

1. Company’s professional age and size,
2. Special internal ‘incidents’, such as launching new products,
3. Market competitiveness,
4. Customer buying behavior, and
5. Overall company margin.

Since the marketing expenditure is before actual revenue generation, it is also interrupted by affordability. Therefore, to determine the right marketing budget, it is important for companies to work with accurate sales and development goals.
Many businesses have failed because they were not interested in the appropriate budget for marketing activity. Companies can grow up to a certain point through the word of mouth, but after reaching a certain size limit, they will stop.

Marketing Investment Benchmarks

How can you build a framework to analyze how much you should spend on your marketing?
On the basis of a review of several industry studies, it was concluded that, on average, companies should spend about 10% of revenue on marketing, with benchmarking point-of-view, and one-third of digital marketing on digital marketing needed. However, digital marketing and marketing are merging, so the percentage of digital marketing will grow continuously.

How to Optimize Marketing ROI

To get the highest ROI from the investment on your marketing budget, a good marketing plan is needed, and you also need an appropriate analytical tool to measure and optimize your various campaigns, events and projects.
It is easy for digital marketers to compare their brand marketing counterparts because they can prove and certify ROI for each marketing expenditure. Unlike sales, marketing ROI is not immediate and immediate – not always – therefore proper deadline (average one year) should be applied.


Companies can be surprised how much they can earn in return for their marketing investment?
This is a fair question. Still, there is no easy answer. Some marketing strategies require longer periods than others for an effective return.
Once you have set up your marketing budget, you will need to determine how it will spread in different channels. For example, despite the size, most businesses will have online and offline advertising campaigns.
In addition to these two different types of marketing, you will also need to determine how funds will be allocated in your online and offline marketing. Online marketing will typically include ads on various social media platforms as well as banner ads, mobile marketing, and even online video marketing.

What about your firm’s marketing expenditure?

Do you want to discuss with us that the percentage of revenue will be fair expenditure in your industry? Contact us. We will go on your goals, the competitiveness of your industry, your margins and the needs of the market.

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