Since 2009, Lakeland marketing budgets have increased compared to the previous year or at least, it remained relatively close and never dipped compared to the past year. In 2017, there was a consensus among businesses that marketing budget should increase to 10.9%. By the end of the year, the total was 7.1%. Not bad, considering that the national economy and even local economies suffered tremendously due to many factors.
If you own a small business, the suggested percentage of the marketing budget is 5% of your annual revenue. In some cases, this could go up to as much as 10%. It depends on how aggressive you want to become in terms of marketing your products and services, especially for B2C companies.
Those companies in the B2C products space allocate the largest portion of their total budget to marketing. It amounts to 16% of their total budget. Those in the B2C services moved from 9.3% to 14.9% in 2018. That’s a big leap.
Marketing budgets tend to fluctuate depending on the success of a particular business during the year. Because Lakeland marketing budgets are generally dependent on annual revenues, it can hover between 6.5% and 8.5%. The highest percentage comes from B2C companies that offer services then followed closely by B2C products.
The biggest spender are companies offering consumer services (18.9%), followed by education (12%), tech software (9.7%), banking and finance (9.2%), consumer packaged goods (9.1%), media and healthcare (9.0%), transportation (8.5%), energy (8.3%), service consulting (7.5%), retail/wholesale (4.4%), mining and construction (3.0%), and manufacturing (2.4%).
You are allowed to increase or decrease your marketing budget, provided that you focus on the main points of a marketing goal, which is to attract new clients to your business. It is difficult to make a recommendation for a marketing budget because not all companies are consistent with what they include in a marketing budget. Some companies, for example, include sales-related expenses while others do not.
The most common inclusions in the Lakeland marketing expenses are direct expenses of marketing activities, social media, marketing employees, marketing analytics, marketing research, other overhead costs associated with marketing, marketing training, and sales employees.
Surprisingly, email marketing stays ahead of social media marketing in terms of effectivity. SEO is another effective method that generates the best ROI. Content marketing is also coming in close, as well as paid advertising on Facebook, Twitter, Instagram, and LinkedIn. Lagging behind are affiliate marketing, pay-per-click advertising, and display advertising.