Just as every job needs a deadline, every marketing plan needs a budget. Most B2B companies base their spending projections on total revenue after expenses, but that percentage varies. Gartner’s annual CMO Spend and Strategy Survey reports slight dips in marketing budgets across all sectors, with an average spend of 7.7 percent in 2024, down from 9.1 percent the year before. Hubspot’s 2024 report noted this same trend but emphasized the upswing from a 2021 spend of 6.4 percent.

At Foster Marketing, there are cases where 5 percent up to 10 percent increases may be called for; however, we generally advise clients to commit 2 percent to 5 percent of revenue to their marketing spend. Additionally ...

Plan to Add Dollars If ...

You are launching a new product, service or technology. Content creation spending is a great way to support early lead-generation efforts.
You are entering a new market or industry segment. Added spending may be needed for market research, awareness and event marketing.
You are adding locations. Add signage and branding, opening event and promotion and public relations to your budget.

You are going international. The complexity of the specific foreign market will require more spending. Beyond the basics of branding, signage, translation and market research efforts, a major push will be needed to build awareness. Thought leadership including webinars, blogs/articles and event participation can be an effective method to make your mark and limit spending.

If your goals include educating your customer on the value of your product, technology or service, with a goal of customer acquisition, including content generation, social media marketing, search engine optimization, paid search, email marketing, webinars and events in your budget.

If You Must Trim Your Budget ...

Lean into digital. Digital advertising options at varying budget ranges are available. As long as you set a budget, there is likely a placement opportunity. Earmarking as little as $500 per month or $1,500 for short-term campaigns can offer results.

When exhibiting, aim for a bigger impact at fewer shows, look into thought leadership opportunities rather than exhibiting at all, and then just walk some. These all offer networking and business development options.

Food for Thought

Avoid tunnel vision. Focus on the key goal, not a specific tool or tactic. For example, if the goal is to attract the attention of younger customers, there are many ways to do this. Instagram may not be the only way, or even the best way to accomplish this. Mix it up a bit to see what resonates with your desired audience.

Do more with less. Host or participate in several smaller events throughout the year to spread out your budget and engage with your customers and prospective customers.
Monitoring is a must. Allocate time and/or funds to tracking results to ensure your efforts pay off.

Stay informed. Keep some funds in for market research. Industry trends and your competition are both moving fast.
Happy budgeting! We wish you success in 2025! And, as always, we’re here to help.