Planning your marketing is a long game – it takes time to build awareness, educate your target demographic about what you do and what you offer, so if you are going to invest in marketing – think in terms of years, not months. It’s not as simple as committing a number and staying within it. You’ll need to take into account a number of factors surrounding your business sector and understand several internal and external factors.
Factors to Consider
An annual budget for marketing is typically 1-10% of a company’s gross revenue. This will fluctuate, of course, depending on the industry, geography and economic conditions.
According to the CMO Survey which surveys US-based companies only – average marketing spend was 6.9% of gross revenue – including both Business to Business (B2B) and Business to Consumer (B2C) companies.
From recent experience based in the Canadian market, a typical marketing budget is slightly lower than in the US. The following are examples of budgets that we’ve seen over our 20+ years of experience.
Industrial, energy, manufacturing (B2B) budgets:
Professional services, accounting and legal (B2C) budgets:
Technology, retail and resorts (B2C) budgets:
- 5% +
So Where Do I Start My Marketing Budget?
If you are trying to figure out your marketing budget, we recommend, start with some general online research, then drill down to look at areas specific to your industry. Reading the CMO Survey (cmosurvey.org) is a great place to start!
You can also reach out to our experience team at GridStone. We would be happy to sit down with you for an free 1-hour consultation about your marketing goals to give you a clear, realistic review that you can take back to build your marketing budget.
To learn more about marketing budgets, please see the following articles:
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