B2B Manufacturing Marketing Spending Strategy

[dot_recommends] January 24, 2022 Manufacturing Trends, Manufacturing Business Strategy

What Should Your Marketing Budget Be This Year?

The graph shows that B2B Digital ad spending rose dramatically from 2017 to 2021, from $4.28 billion in 2017 to $9.03 billion in 2021

Some B2B businesses experiencing capacity limitations are asking what to do about marketing spending this year. Others see opportunities to grow amid a shifting business landscape. Whatever your business situation, setting your B2B manufacturing marketing spending strategy is big decision.

Benchmarks for Manufacturing Spending on Marketing

I often get asked, “How much do most manufacturers spend on marketing?”

Here’s what we know from the national CMO August 2021 survey:

  • Manufacturers spend 4.5% of revenue on marketing
  • Marketing makes up 7.7% of the overall firm budget for manufacturers
  • Across all sectors, over 60% of marketing spending goes to digital marketing

This means that a $20M manufacturing firm will budget about $900Kper year on marketing and spend about $45K per month on digital marketing. How does your marketing budget compare?

Spend Less? Spend More? Factors to Consider…

Some companies need to overcome supply chain, workforce, and/or economic challenges before they can start adding new customers again.

In contrast, your firm may be among the companies eager to continue acquiring new customers in 2022. Perhaps your product lines have been less affected. Or, you may be like some companies we partner with that have diversified to serve thriving industry sectors.

Reasons Some Companies May Spend Less in 2022

  • Trouble keeping up with existing demand along with fixed capacity
  • Continuing supply chain disruptions
  • Worker shortages
  • Lack of predictability in the sales pipeline
  • Downturns in their customers’ industries reducing demand

Reasons to Consider Maintaining or Raising Spending

If you find yourself among the companies struggling to keep up with demand, beware of cutting marketing spending too drastically. Doing so could give your competition an advantage in the recovery.

Think instead about how best to allocate your budget to meet your outcome goals—more about that in my next post.

In short, plan this year’s B2B manufacturing marketing spending strategy with the future in mind. What do you want your pipeline to look like in a year or 18 months? Spend now to make that a reality.

Have thoughts about the best marketing budget strategy for 2022? Connect with us on LinkedIn or Tweet us. We’re always happy to talk.

—parin

Managing Partner

Image credit: eMarketer

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