HOW MUCH SHOULD I SPEND ON ADVERTISING?
Deloitte Survey March 2023
Marketing budget as a percentage of company budget dropped to 12.3%, near pre-Covid levels. However, marketing budget as a percent of company revenues rose to 10.9%. Yearly growth in marketing spending slowed a notable 72% from a 10.4% increase in the last survey to just 2.9% growth over the last 12 months in this survey. While digital marketing spending also slowed, the decrease is less dramatic (45% change from 15.0% increase in marketing spending in the past survey to an 8.2% increase in this survey). On average, companies spend 53.8% of marketing budgets on digital marketing.Managing Brand, Growth and Metrics
In terms of spending on specific growth strategies in the past 12 months, the highest percentage of spending was allocated towards low-risk market penetration strategies (57.7%), followed by 19.6% offering development, 16.3% market development, and 6.5% diversification. The exception was B2C Service companies, which increased spending on market development by 111.6% from 7.9% to 16.7% of budgets. Organic growth is projected to continue to dominate growth strategies over the next year with 71% of companies using this approach relative to partnerships (12.5%), acquisitions (11.8%), and licensing (4.7%).
