How Much Should You Budget For Marketing In 2018?


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Hoeveel moet u budgetten voor marketing in 2018?

Chris Leone   door Chris Leone 31 oktober 2017
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We werken het volgende bericht regelmatig bij met de nieuwste informatie over digitale marketingbudgetten.

Laatste update: oktober 2017

Dit artikel bevat informatie die u kan helpen bij het budget voor marketing en waar u uw marketingdollars kunt beleggen.

Inbegrepen in dit artikel zijn:

  • Hoeveel besteden bedrijven aan marketing?
  • Waar worden marketingdollars offline en online geïnvesteerd?
  • Welke marketingstrategieën en tactieken behalen resultaten?

De antwoorden op deze vragen zijn afkomstig van een paar betrouwbare bronnen:

  • een jaarlijks onderzoek van Chief Marketing Officers (CMO's) uit verschillende sectoren en bedrijfsgroottes
  • een toonaangevend onderzoeksgroep rapport over interactieve (digitale / online) marketingtrends en voorspellingen 
  • andere toonaangevende onderzoeksbureaus voor digitale marketing.

Dit bericht is onderverdeeld in de volgende secties:

  • Algemene wijzigingen in totale marketingbudgetten
  • Hoe marketingbudgetten over kanalen worden verdeeld
  • Welke marketingstrategieën en tactieken behalen de beste resultaten?
  • Wijzigingen in traditionele versus digitale marketinguitgaven
  • Verwachte veranderingen in marketingbudgetten
  • Welk percentage van marketingbudget uitgegeven op digitaal?
  • Hoeveel moet uw vaste budget voor marketing?

(short op tijd? ga naar de bodem voor de tl; dr)


 DOWNLOAD ONZE EXCLUSIEVE 2018 BUDGET CALCULATOR

calculator.gif


Algemene wijzigingen in totale marketingbudgetten

First, a look at how marketing budgets are changing.

CMO marketingmarketing marketing

For eight consecutive years, top marketers were asked how their marketing spend was expected to change in the upcoming year.

Since 2009, marketing budgets remained relatively consistent or increased compared to the previous year for the majority of participants.

With no evidence to suggest this trend will change, 2018 marketing budgets are expected to remain consistent with 2017 levels or increase.

You can download the full report here.

Marketing budgets as a percent of the overall firm budget has remained even more consistent, as shown in the chart below.

CMO marketingmarketing marketing

How To Allocate Marketing Budgets Across Channels

The next question to answer is how to allocate marketing budgets across channels – offline and online - and how to spread the online investment across the various online/digital channels. 

Reports from Forrester Research and eMarketer show the estimated allocation of marketing funds offline vs. online and across the digital channels.

Here are some conclusions from that report:

  • In 2018, the average firm was expected to allocate 41% of their marketing budget to online, and this rate is expected to grow to 45% by 2020
  • Search engine marketing will capture the largest share of online spend with online display (banner ads, online video, etc.) taking the second largest share
  • Social media-reclame-investeringen zullen blijven groeien, met een samengestelde jaarlijkse groei van 17% van 2016 tot 2021, en zal naar verwachting 25% uitmaken van de totale online-uitgaven in 2018.
  • Mobiele marketing is uitgegroeid tot een punt dat het niet langer wordt gevolgd in de prognose en wordt verondersteld dat het in alle kanalen wordt overwogen
  • Digitale marketing is aan het pacen tegen een samengestelde jaarlijkse groei van 11% tussen 2016 en 2021 met de grootste groei in online video.
  • Investeringen in betaalde zoekresultaten, display-advertenties, advertenties op sociale media, online videoadvertenties en e-mailmarketing zullen naar verwachting in 2021 46% van alle advertenties vertegenwoordigen.
Conclusies uit het rapport van 2014 (ter vergelijking):
  • 29% van een marketingbudget werd toegewezen aan online / digitale kanalen
  • Search engine marketing (SEO & SEM) captured the largest share of online spend at 47% or about 14% of the firm’s total marketing budget
  • Online display advertising (banner ads, remarketing & retargeting) captured the next biggest share of the online spend at about 34% of total online spend and about 10% of the total marketing budget
  • Social media investments were estimated at 6% of total online spend and a bit less than 2% of the total marketing budget
  • Mobile garnered about 10% of the total digital marketing budget and slightly less than 3% of the total marketing budget.

The chart below shows strong increases in digital channel investment. At least half of all respondents planned to increase spending on social media marketing, content marketing, personalization, video advertising, and online lead generation.

Trends voor marketingbudgetten 2017 door Channel.png

Traditional channels did not fare nearly as well. Print, radio, and television were expected to see a net decrease in total marketing investments.

Once again, these are averages.

How marketing funds are ultimately allocated is driven by the nature of the business, the competitive marketplace, and how target customers behave through the buying funnel.

Which Marketing Strategies & Tactics Are Getting The Best Results?

In a recent survey of 2,500 digital marketers, respondents reported on what marketing activities generated the best ROI.

ROI voor digitale marketing door channel.png

Marketing technologies and automation are proving effective at bringing together the most effective marketing tactics (email marketing, organic search, social media marketing and content marketing) to achieve better results.

Which Social Media Channels Should I Invest In?

An August 2016 report from eMarketer attempts to project social media penetration by social platform through 2020. 

While there are no direct investment assessments associated with this particular study, it does show noteworthy trends among the major social channels.

Facebook is expected to remain king, with 90% of social media users utilizing the platform. Instagram is expected to grow, from 32% penetration to 47% by 2020.

Other social channels with baked in advertising features, such as Pinterest and Twitter, will continue to have relatively low penetration, peeking around 33% of users by 2020. 

This data suggests an emphasis should be made on Facebook and Instagram channels for social advertising. 

Social_Media_Penetration_by_Channel.jpg

Expected Changes In Total Marketing Budgets

Pagina's van The_CMO_Survey-Highlights_and_Insights-aug-2017-2.png

The report above from cmosurvey.org shows a slight slow-down in the rate of increase in marketing spend after a large jump in early 2017. The largest increase in projected marketing spend occurred shortly after the recession of the late 2000’s, but continues to fluctuate between 4 and 10%.

Changes in Specific Digital Channel Investments

In a 2017 report from Hanapin Marketing, 75% of respondents expect to increase their Google Adwords investments in the next 12 months (more than any other digital channel). Facebook, which has become a respectable competitor to paid search, expects to see increased investments by 71% of respondents. 

Instagram and Twitter, by comparison, expect to see increased investments from less than half of respondents (46% and 21% respectfully). Snapchat, which has a greener ad platform, was at the bottom of the list, with only 15% of respondents expecting to increase investments into 2018.

This report bodes well for "digital traditionalists," who continue advocating the importance of search over social channels. 

Hanapin-marketinguitgaven stijgen in ppc channels.png

Changes in Traditional Versus Digital Marketing Spend

Digitale marketinguitgaven versus traditionele advertenties

This chart, also from cmosurvey.org, shows the sharp contrast between digital growth and offline decline.

For a half decade, investments in traditional advertising have consistently dropped by single digit percentages each year.

Digital marketing spend, by comparison, has consistently grown by double digit increments year after year.

This means businesses are shifting their marketing spend.

What used to be spent on radio, television, and newspaper is now being spent on search, email, and social.

This trend is expected to continue for the next several years.

The chart below from eMarketer projects the following: “In 2017, TV ad spending will total $72.01 billion, or 35.8% of total media ad spending in the US. Meanwhile, total digital ad spending in 2017 will equal $77.37 billion, or 38.4% of total ad spending."

Digital_versus_TV-2.gif

This marks the first time in history digital spend surpassed TV ad spend in the US.

And the gap will only widen—by 2020, digital spend will surpass television by 36%.

Percentage Of Marketing Budget Spent On Digital

Digital spend is only a portion of total marketing spend for most businesses. For 50% of businesses surveyed, digital represents less than 40% of total marketing spend.

Percentage_Of_Marketing_Budget_Spent_On_Digital.png

Businesses who rely more heavily on the internet to generate sales (e.g. an ecommerce business), invest a greater percentage of their marketing budget towards digital.

For more traditional businesses, which rely on offline AND online activity to fill the sales funnel, a healthy mix of marketing investment is to be expected.

Source: Econsultancy Digital Report

How Much Should Your Firm Budget For Marketing?

The CMO survey offers some answers. In the charts below you’ll see how marketing professionals from all types of firms responded to this question in 2017.

marketingbudget procent van het bedrijfsbudget en revenue.png

The main takeaways from this survey are as follows:

  • For B2B firms, marketing budgets as a % of firm revenue fell within the 6-7% range
  • For B2C firms, marketing budgets as a % of firm revenue were around 7-9%
  • Marketing budgets as a % of overall firm budgets have been fairly consistent for the past few years, in the 10-11% range

Marketing Spending From 2012-2013:

As a point of comparison, here is data from 2012-2013.

Marketingbudgetten 2014

Based on these results, we see that B2B marketing spending has increased over the past couple years, whereas B2C marketing spending has dropped slightly. 

[RELATED: The Top B2B Digital Marketing Strategies]

It is important to note that these percentages represent the total marketing investment, not just advertising or media spend.

They include things like marketing staffs, customer relationship management, investments paid to agencies and other outside suppliers, advertising costs, media spend, etc.

Firms seeking to grow market share will likely be on the high side of these averages vs. firms planning for modest growth, which may be on the lower side.

Additionally, the competitive nature of a certain marketplace will influence where a particular firm falls among these average figures.

Marketing & Digital Budget Summary - What Does It All Mean?

We verzamelen opzettelijk enquêtes uit verschillende bronnen over een aantal jaren om u een objectief perspectief en een juiste context te bieden. 

De conclusies van elk onderzoek zijn niet altijd consistent.

Deze inconsistentie vertegenwoordigt de diversiteit van zakelijke behoeften en de marketingstrategie die ermee gepaard gaat.

Dat gezegd hebbende, zijn de overkoepelende thema's uit de bovenstaande studies als volgt:

  • Marketingbudgetten nemen toe
  • Er wordt meer geld aan digitaal uitgegeven, ten koste van traditionele advertentiekanalen
  • Totale marketingbudgetten liggen tussen 7 en 12% van de totale omzet
  • B2C's geven over het algemeen meer uit aan marketing in vergelijking met B2B's
  • Kleinere bedrijven geven meer uit aan marketing als een percentage van hun totale inkomsten
  • Zoek- en displaymarketing vertegenwoordigen het leeuwendeel van het digitale budget
Als u de gegevens van deze geloofwaardige bronnen in de marketingcommunity bij elkaar brengt, kunt u bepalen hoeveel u aan marketing wilt besteden en waar u die investeringen kunt toepassen.

Bij WebStrategies, Inc, weten we dat uw marketinginvesteringen in winstgevende verkopen moeten resulteren.

Lees meer over hoe online / digitale marketingmethoden zoals inbound marketing, Google Analytics, display-advertenties en webontwerp en -ontwikkeling u kunnen helpen uw verkoopdoelen te bereiken.

Waar haal je het meeste waar voor je geld als het gaat om je marketingbudget? Laat het ons weten in de comments hieronder.

Mogelijk bent u ook geïnteresseerd in ...

2018 Digital Marketing Budget Calculator
Wat is een goede ROI voor marketingdoeleinden?
Wat is een goede kosten per klik?

 


 

As President, Chris is responsible for leading all the day-to-day operations of WebStrategies. His work has been featured on the Google Analytics and Hubspot blogs, and he’s a regular columnist for the Richmond Times Dispatch.

 

Topics: Advertising, Internet Marketing, Inbound Marketing, Online Marketing, Marketing Automation, Social Media, Display Advertising, Digital Marketing

Agree, disagree, or just have something to add?

Leave a comment below.

 

28-10-2015 07:10:18

I'm so frustating about inbound marketing, especially on SEO matter it has long learning curves. Seems like it takes a time to mastering whole of it altogether.

26-3-2016 21:34:48

it is definitely frustrating. i have been in the field for years and have not yet "mastered" it. but keep in mind, if it's frustrating for the masses it also speaks to an opportunity ;)

23-11-2015 07:01:17

You're spot on. It's a really big field, especially Inbound marketing. Some relate it just to SEO, but it's a really really bigger field than just that :)


My advice to you would be to just start small, focus on the audience and how to reach out to them. And learn as you go with little steps. Focus on starting with a strategy, objectives (they don't have to be realistic, even touching the surface helps here) and metrics to see how you go. After you've done a bit of work, analyse the results and try to figure out what went great and what went wrong.


A big chunk of marketing is psychology and understand the people really helps here. Good luck!


On the article - great read!

Ben Nzioka

11-1-2016 14:08:12

Good read

2-10-2016 14:11:42

I believe these marketing spends look considerably different in the micro-business market. Since 2008, there have been a growing number of professionals starting their own one-person shops, often as freelancers, coaches or strategists. They have no employees aside from hiring out virtual assistants or business coaches on a one-time or as-needed basis, and their marketing is primarily online through "free" channels and social media advertising. Often, after investing in a trade show or conference based solely on the number of expected participants (despite having no strategy for how to convert participants into customers) the next spend is on unfocused social media ad efforts. Following the low converting campaign, this market will spend hundreds or thousands hiring a "social media manager," an "ad specialist" or taking a course to teach them in 9 weeks how to (supposedly) be a full fledged marketing expert in their own right. Without the budget or metrics for selecting a qualified marketing team, these businesses often fade into obscurity. I believe that if this market were included in this study, it would paint a very different and skewed picture of the ROI if marketing in American businesses.

17-10-2016 06:35:16

Agree that sole trader micro-businesses often spend nothing, then sink more than they can afford in something which has little impact. Since the goal of this business is to keep one person employed, I'd actually say personal networking is probably the way to go - back it up with a well-structured LinkedIn profile and lots of recommendations.
However a small business with 2 or 3 staff is a very different beast, also not well covered here. In this case I'd say more proactive online lead-generation via a (clean, simple) site with some great calls to action/offers to get leads, plus an email newsletter to stay in touch, is the best way to supplement the personal networking. Drive top of the funnel traffic via PPC or content marketing depending on how long you can wait for returns. Most small businesses probably need some PPC to get things happening faster.
That said, the overall analysis here and the trends are spot-on.

21-10-2016 06:22:40

Hi Chris, good research work is done on the marketing budget. Especially the estimate of social network users till 2020. This information will help in building better social media strategies. thank you, Chris, for sharing the information.

19-11-2016 08:51:22

Great, informative article. Very helpful. Thank you so much.

29-11-2016 07:57:11

Great blog here! The success of an online marketing will depend on the strategy that the company has. The effectiveness of one’s company campaign of a certain product or services can be measured in many different ways such as the visibility of the product and services online and the patronage of the customers.

29-11-2016 20:30:47

Thanks a lot for this detailed research!

Gregg Primm

19-1-2017 00:50:54

Great blog. One thing I do want to point out though is associated with your statement "It is important to note that these percentages represent the total marketing investment, not just advertising or media spend. They include things like marketing staffs, customer relationship management, investments paid to agencies and other outside suppliers, advertising costs, media spend, etc."

While most of those examples of expenses that fall under the marketing budget are true, it's also important to note that in the CMO Survey only about 50% of CMOs surveyed include the salary of marketing staff in their marketing budget numbers, and for smaller B2B companies (<$25M revenue) that number is even lower -- ~38%. Considering the cost of headcount, the fact that some companies include this as budget and some don't it's very difficult to build a budget based solely on the survey findings. Frustrating!

9-2-2017 19:18:24

The CMO Survey blog (https://cmosurvey.org/blog/social-media-spending-triples-falls-short-expectations/) stated companies are increasing their digital marketing "...rising from 3.5% of marketing budgets in 2009 to 11.7% in 2016.  This growth rate attests to the importance companies place in these new marketing strategy tools." Your blog neglected to include the rest of the CMO Survey.
The CMO Survey blog further summarized its finding, that, yes, many companies are increasing their Digital Marketing Budget but that "almost half of firms (44.1%) say they haven’t been able to show the impact of their social media spending: the ability to integrate customer information across social media, other communications, and purchasing channels is weak and not increasing;"
And most importantly, "and only 4.6% say social media contributes very highly to company performance."

Chris Leone

9-2-2017 19:25:50

Hey Laura - thanks for the comment. While I didn't mention every finding of the CMO survey, I'm also not advocating social media as a high ROI channel. So there was no hidden agenda in not including this detail.

18-2-2017 08:10:33

Your blogging is very captivating with great information. I can appreciate you've put plentiful planning into it and I appreciate that. I will bookmark your blog and come back again soon. Thanks!

16-3-2017 17:47:52

thank you for sharing nice article

Group Quality

7-6-2017 06:54:14

Always have confidence in a budget that you've created that involves proactively choosing where you want your money to go and what result you want to achieve.

Alessandro Bogliari

26-6-2017 15:14:47

Wow that budget calculator is just great, thanks for sharing it!

spear digitalweb

29-6-2017 08:39:55

Thanks for sharing this type of interesting article. Keep it up.

Eric Hecht

9-11-2017 08:29:39

Appreciate your research for the Post. It will definitely be going to help marketers to make a better budget plan to market their business without wasting their money.

Marie Johnson

10-12-2017 15:59:03

Bedankt voor de zeer prescriptieve en inzichtelijke post. Ik ben het eens met de meeste opmerkingen en voel het waterval-effect van alle nieuwe technologieën die naar beneden regenen en de druk om toe te voegen aan de mix van marketingactiviteiten, maar niet om de ROI te bepalen.

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