Here at Southern Tide Media we focus on business to business sales. By the time December begins we have reviewed the previous months or marketing quarters and are moving into discussing our client’s plan of action for the next year’s marketing. While looking ahead, we find that research helps us know where to focus the next years marketing.
Since 2009, most marketing budgets have remained relatively constant at 10 to 13 percent of a business’ budget. With no evidence to suggest this trend will change, 2018 budgets are showing the average business is expected to allocate 41% of their marketing budget to digital and online sources. Digital marketing is expected to grow to 45% by 2020. Below are the polling results of 3,347 businesses 2017 marketing plans to either increase, keep the same or decrease their digital marketing budgets.
This list also shows the variety in types of digital marketing to include in your budget.
So, for 2018 the predictions of digital marketing:
- Search engine marketing will capture the largest share of online spend with online display (banner ads, online video, etc.) taking the second largest share.
- Social media advertising investments will continue to grow, with a 17% compound annual growth rate from 2016 to 2021, and is expected to represent 25% of total online spending in 2018.
- Digital marketing is pacing at an 11% compound annual growth rate between 2016 and 2021 with the biggest growth occurring in online video.
- Investment in paid search, display advertising, social media advertising, online video advertising and email marketing is predicted to account for 46% of all advertising by 2021.
As you move forward with your 2018 business marketing budget, the total marketing budget should be 7 to 12 percent of your business budget. Keep in mind that smaller companies spend more on marketing as a percentage of their total revenue, but on average marketing budgets do increase yearly. It is a fact that more money is being spent on digital marketing, at the expense of traditional advertising channels.
Give Southern Tide Media a call today to accomplish more with your digital marketing budget today!