If you are a small business owner, it is vital to have an understanding of budgeting for your marketing efforts. Without proper planning, precious resources can be wasted; instead of generating profits, too much money could potentially be lost.
To help guide you with your marketing budget decisions, we have gathered 5 important small business marketing budget statistics that show the average marketing budget and spending habits of small businesses.
Top 3 Small Business Marketing Budget Statistics in 2023
- On average, a small business spends 8.11% of its total revenue on marketing according to data gathered from multiple studies by SBA, Gartner, Bigcommerce, Hubspot, and Revlocal.
- 47% of small businesses spend $10,000 or less per year on digital marketing.
- B2B enterprises that sell services devote 12% of their revenue to marketing.
On average, small business spends 8.11% of its total revenue on marketing
As a business consultant, I place great importance on investing in marketing for small businesses. The data gathered from the Small Business Administration (SBA), Gartner, Bigcommerce, Hubspot, and Revlocal highlights that, on average, small businesses dedicate 8.11% of their total revenue to marketing efforts.
If you give enough money to marketing, you can compete more effectively with bigger competitors who can spend more money to get noticed. Thus, small businesses need to weigh up the cost against the potential returns before committing to any strategies; engaging a professional might help generate a positive ROI as they understand what works in your industry while staying within budget.
(SBA, Gartner, Bigcommerce, Hubspot, Revlocal)
47% of small businesses spend $10,000 or less per year on digital marketing.
Clutch, a research firm and business-to-business ratings and reviews platform, recently released data indicating that 47% of small businesses spend $10,000 or less per year on digital marketing.
This figure is noteworthy as it sheds light on the budgetary constraints many companies face when deploying effective digital marketing strategies.
Consequently, this businesses must take advantage of lower cost solutions such as content creation and optimizing existing campaigns while still placing emphasis on staying up to date with current trends should they wish to remain competitive in their respective industries.
B2B enterprises that sell services devote 12% of their revenue to marketing.
The CMO Survey found that B2B service businesses spend 12% of their revenue on marketing. This is a sizable percentage, and it demonstrates that B2B companies value advertising.
Marketing can be an effective method of expanding a company’s customer base. B2B businesses have set themselves up for success by allocating resources to advertising.
5 Reasons to Invest More in Marketing Your Business
Here are five reasons why you should invest more in marketing your business:
1. Marketing Helps You Reach More Customers
With traditional advertising methods like print, radio, and television, businesses only had the opportunity to reach local customers within a certain radius of their store or office.
Here’s a tip:
But with the advent of digital marketing, businesses now have the opportunity to reach customers all over the world with just the click of a button. Marketing is vital if you want to grow your consumer base and reach a broader audience.
Here’s a tip: Learn more about Mailchimp’s Marketing Strategies to Grow Your Audience.
2. Marketing Helps You Build Brand Recognition
In order for customers to buy from you, they need to know who you are and what you do. Marketing helps you build brand recognition by getting your name and your message in front of as many people as possible. The more people see your name, the more likely they are to remember it when they need your product or service.
46 percent of customers say they would pay more to buy from companies they trust, according to a survey (Salsify, 2022). This serves as an important reminder that it’s worth investing in marketing to build trust and loyalty with potential customers.
3. Marketing Helps You Stand Out From the Competition
You will almost certainly face competition in your sector. Yet, in today’s crowded environment, it’s more crucial than ever to ensure that your company stands out.
According to the Emery Business Strategy Series, ” 90% of Fortune 500 companies already use competitive intelligence to gain a competitive advantage.”
A well-executed marketing campaign can help you do just that by highlighting what makes your business unique and showing potential customers why they should choose you over the competition.
4. Marketing Helps You Generate Leads
Generating leads is essential for any business that wants to grow and succeed. Without leads, you have no way of knowing who your potential customers are or how to reach them.
A strong marketing campaign can help you generate leads by putting your message in front of people who are interested in your product or service.
One of the easiest ways to generate leads is to use content marketing. According to the data published on Exploding Topics, “76% of marketers use content to generate leads.”
5. Marketing Helps You Make More Sales
At the end of the day, businesses exist to make sales and earn profits.
While many factors influence whether or not a sale is achieved, good marketing may help tilt the scales in your favor by making potential customers aware of your product or service and enticing them to give it a try.