If you’ve ever run any business, you already know that marketing can make you or break you.
A marketing plan is one of the essential plans any business owner should have.
But marketing plans demand a marketing budget, and sometimes business owners are left wondering how much they should put aside.
When it comes to Amazon statistics or some other behemoth in the industry, these numbers can make anyone think that the more money you have, the better.
That might be the case, but how you spend that money on different marketing channels is equally important. Not all channels will generate the desired ROI.
But first thing’s first—you must do proper market research.
How Much Is Spent on Market Research?
Market research is where marketing starts.
The global revenue of the market research and data industry was $80 billion in 2019, which only shows how important it is.
But how much money should your business spend on it?
According to 2019 reports, 50% of the global spending came from the top three sectors—namely, consumer non-durables, media and entertainment, and pharmaceuticals.
Consumer non-durables accounted for 19% of media research spending, while media and entertainment, together with pharmaceuticals, accounted for 16%.
The US market data show that media and entertainment remain at 25%, while CND dropped to 10%.
If you’re looking for an agency, get ready to achieve top-notch results.
If you want to spend less, consider hiring a well-trained person to help you with market research tools, such as the Google Keywords tool, for example.
Marketing Expenses
To have a better understanding of how much some companies spend on marketing, let’s take a look at this list:
- Samsung Electronics: $2.41 billion
- Ford Motor Company: $2.45 billion
- Verizon Communications: $2.64 billion
- Amazon: $3.38 billion
- Comcast Corporation: $5.75 billion
This data summarizes spending for 2017, but it’s clear that big companies spend a lot on marketing, despite the fact they are well-established in their respective industries.
Budget Breakdown Per Marketing Channel
Different channels have different users, and not all of them will react the same to a company or a product.
That’s why it’s crucial to plan a marketing budget in such a way that it covers multiple channels.
It’s vital to allocate funds for market research to find out what channels users love the most.
Pay-per-click is still the number one option for many marketers. Google search revenue was $27.2 billion for the last quarter of 2019.
Social media channels are a second-best marketing tool for marketers.
So many companies advertise on Facebook that the platform earned $39.9 billion in 2017 from advertising revenue alone.
Twitter receives more than 85% of its revenue from ads. In 2018, Pinterest got $3 on average per user for a promoted pin.
Email marketing is another marketing channel to help you promote your products.
A mid-size business typically spends around $10,000.
Again, the expenses depend on the number of subscribers, the platform, and the products.
Let’s not forget about content marketing. Businesses spend between $5,000 and $50,000 per month, depending on their needs.
Summary
Even if your company doesn’t have billions to invest in marketing, studying the way that big companies do it can help you scale up your business later.
Keep in mind that it might take some testing out to see what generates ROI.
One thing is sure—the sooner you start promoting your products and your brand, the sooner money will start rolling in.
Author Bio:
Founder of SERPwatch.io, Josh started building his experience in all things internet since the beginning of 2000.
A novice but aspiring developer, he lives and breathes SEO and loves to explore how the World Wide Web works.
Josh Wardini
Co-Founder
Serpwatch
