There is no one size fits all approach when it comes to marketing budgets across different industries. Consumers are unique, and communicating with them varies depending on who and which sector you come from.
A report done by Deloitte, Duke The Florida School of Business and the American marketing association found that marketing spend will see an overall increase across different industries, with some industries investing more in its marketing as compared to others. Industries listed in the study include banking/finance/insurance; communications/media; consumer packaged goods; consumer services; education; energy; healthcare; manufacturing; mining/construction; service consulting; retail/wholesale; tech/software/biotech and transportation.
In terms of marketing spend in proportion to company revenue, consumer services have come in top for marketing spend at 13.9%, this is followed by the technology/software/biotechnology sector at 12.2% and retail/wholesale at 11.6%. The industries which are spending the least as of February this year are the energy and mining/construction industries where only 0.5% and 0.6% of company revenue is being invested into marketing.
The study also finds that marketing budgets also represent 11.1% of firm overall budgets, while marketing spend represents 8.1% of company revenues. Marketing budgets are also expected to increase, according to the February 2017 report. Actual change in marketing budget in the past 12 months has increased to 7.3%. Meanwhile, expected change in the next 12 months is projected at 10.9%.
Changes in marketing budgets will also vary across industries. In terms of percentage change in marketing budgets for different sectors in the upcoming year, the education industry will see the highest rise in marketing budget at 20.4%, followed by mining/construction at 17% and consumer services at 15.5%.
Most sectors will see a percentage increase in marketing budget, with the exception of the energy industry which will see a 14% drop in marketing budget.
Digital spend is expected to dominate according to the report. Percentage change in digital marketing spend is at 14.6% this year, compared to 13.2% last year. Traditional advertising spend is also expected to grow for the first time in five years. Traditional advertising spend has grown to 0.6%, compared to -3.2% last year.
Meanwhile, brand building is also expected to continue with strong spending gains according to the report, percentage change in CRM and brand spending is expected to rise to 7.9% and 9.7% respectively, an increase compared to findings from August 2016.
The CMO Survey is a biannual survey sponsored by the American Marketing Association, Deloitte, and Duke University’s Fuqua School of Business. The latest edition received responses from 388 top marketing executives.