How Marketing Dollars Are Distributed [Report]

How Marketing Dollars Are Distributed [Report]

In the latest analysis of marketing budgets, advertising has emerged as the largest expenditure for marketers worldwide. According to Salesforce’s State of Marketing report, B2B and B2C marketers allocate more of their budgets to advertising than any other resource. This trend underscores the critical role of paid media in reaching and engaging target audiences effectively.

Marketing Budget Distribution

Key Findings

  • Budget Allocation: B2B marketers allocate 19% of their budgets to advertising, while B2C marketers allocate an even higher 22%. This marks an increase from 2022, with ad spend rising by 3% for B2B and 4% for B2C marketers.
  • Comparison with Other Expenses: In contrast, spending on agency support has decreased, now at 10% for B2B and 12% for B2C marketers. This suggests a shift in priorities towards direct advertising efforts.
  • Content and Technology: Content remains a significant expenditure, accounting for 17% of B2B budgets and 19% of B2C budgets. Additionally, tools and technology claim 16% and 17% of the budgets for B2B and B2C marketers, respectively.

Gartner’s research aligns with these findings, noting an increase in paid media’s share at the expense of marketing technology, agencies, and labor since 2018.

Tools in Use

Marketers are utilizing an average of eight different tools and technologies, with marketing analytics/measurement tools (88%), customer relationship management systems (86%), and ad platforms (80%) being the most common.

Account Based Marketing (ABM)

B2B and B2B2C marketers allocate 14% of their budgets to account-based marketing (ABM). Interestingly, B2B marketers report a focus on customer acquisition (60%), product-led growth (48%), and upselling (48%), rather than solely on deepening relationships with existing customers.

Customer Focus

Among B2B respondents, 78% market to accounts, 65% to opportunities, and 64% to leads. However, the primary use of ABM is for new customer acquisition rather than maintaining existing relationships.

The trend towards increased ad spend indicates a shift in how marketers are prioritizing their budgets. As the digital landscape evolves, marketers are investing more in direct advertising methods, leveraging various tools to optimize their campaigns and reach their target audiences effectively. This focus on paid media underscores its growing importance in the marketing mix and the strategic adjustments marketers are making to stay competitive.

Data: The results are based on a global survey of 4,850 marketers across B2B (25%), B2C (50%), and B2B2C (25%) business models. Some 39% held the role of CMO (12%), VP or equivalent (27%).

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