5 Marketing Spend Trends To Act On Now
Marketing as a profession is undergoing a seismic shift.Marketers are under mounting pressure from C-suites to deliver measurable results. By all accounts, companies are spending more on marketing and leveraging a dizzying array of digital assets. They are also struggling to develop relevant media in an environment saturated by an endless stream of content.In e-commerce, for example, the average conversion rate is about 2% according to WordStream. There is a similar lack of engagement in business-to-business (B2B) marketing, where your garden variety newsletter garners a 3% click-through rate.
In the face of extraordinary change and competition, companies are reprioritizing their spending. According to the February 2019 CMO Survey conducted by Duke University, American Marketing Association and Deloitte, marketing spending will increase 5% this year. Digital advertising is growing at a 12% clip, while traditional advertising has declined at an average rate of -2% over the last five years.As the survey is of “chief marketing officers,” it is assumed that their marketing spend may be higher than that of the average company. However, we leverage this data as an excellent source for benchmarking. Spending is also skewed by channel, with non-internet-related businesses spending 6.2% of revenue on marketing. Smaller companies spend more as a percentage of revenue than larger ones (those with less than $25 million in revenue spend about 10%). Read More