How Much Should You Spend on Digital Marketing?
Determining how much you should spend on Digital Marketing can be difficult without supporting statistic data and tool.
Marketing spending as a percentage of revenue is between 6.5% to 8.5% on average. The highest percentage comes from B2C service companies followed by B2C product companies.
In a recent survey of 2,500 digital marketers, respondents reported on what marketing activities generated the best ROI ( see picture below ).
Based on the survey result above, email marketing still has the highest percentage of Excellent and Good ROI results, with social media marketing following closely behind.
So, how much do CMOs or marketing professionals spend on average for Digital Marketing based on a percentage of firm’s budget or revenue?
Digital Marketing budget as a percentage of the firm’s budget:
B2B Products: 9.2%
B2B Services: 8.9%
B2C Products: 16%
B2C Services: 14.9%
Digital Marketing budget as a percentage of the company’s revenue:
B2B Products: 6.3%
B2B Services: 6.9%
B2C Products: 9.6%
B2C Services: 11.8%
This is a free Digital Marketing budgeting calculator ( in Microsoft Excel format ). There are four factors influence the budget recommendation on this calculator, they are:
1. Expected Annual Revenue
2. Business Type ( B2B or B2C product, or B2B or B2C services )
3. Expected percentage of annual revenue generated online
4. The numbers of internal marketing staff on your marketing team
iMarketology can help you to formulize right Digital Marketing Strategy ( Digital Marketing Plan and Budgeting are included on it ) for your business.