Usually, your marketing budget is shaped by your company's needs. And according to a Gartner report, these companies' marketing budgets have climbed from 6.4% to 9.5% in 2022. With the primary goal of maintaining their market positions, companies with stable growth should budget 2%-10% of their revenue towards marketing. At the same time, they collect data suggesting how to spend effectively on marketing, thereby reducing their marketing costs. Stable growthĬompanies with sustainable growth, such as enterprises, usually have bigger budgets for marketing. For instance, a company with a revenue of $2 million should spend at least $400,000-$500,000 to scale up its growth. Entrepreneur recommends that 12%-20% of projected revenue is an excellent start. Though the budget depends on the particular sector, 10%-15% of total revenue is usually a safe bet to spend on marketing. Moderate growthĪ company with moderate growth should be willing to scale its marketing budget upwards to keep up with the competition in the industry. Companies in this growth stage should budget 15%-30% of their projected revenue on marketing.Ī VC-backed startup, for instance, should have a startup marketing budget of about 30%-50% of the funds raised-and a founder that expects to get $100K ARR should allocate $10K-$40K on marketing. Here's a breakdown of marketing spend by a company's growth stage: High growth (Startup)Īs a high-growth company, a startup has to grow much faster or risk losing its market shares to competitors. But before deciding on your marketing expenses, you should also factor in your overall business goals, business expenses, and your company's growth. You can often estimate your marketing spend based on a percentage of the revenue for your business. Marketing spend varies by industry, company size, and growth rate. How much should a company spend on marketing?
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