Fortunately, it’s still possible. How? Using benchmarks. as a percentage of total company budget and total company revenue, by industry, company size, etc. In Sept 2022, the marketing budget accounted for an average of 7.8 percent of revenue at B2B product companies, and 5.9 percent for B2B services companies. Here’s the data for marketing as a percentage of revenues: Personally, I find the data by employee easier to work with since they show a more linear pattern of companies spending a declining percentage of revenue on marketing as they grow larger: Marketing Percent Revenue By Employees And here’s the data by industry: Marketing Percent Revenue by industry The cmosurvey.
org data, while useful, does require you to interpolate bulgaria whatsapp phone number from multiple data points to land on the right number for you. For SaaS companies in particular, we can do better: Insight Partners publishes some great benchmark data for total marketing budget — includes people, program, and other (mostly tech spend) — as a fraction of the new logo bookings goal, based on the average deal size (in ARR) for new logo contracts: <$15K new logo deal size: 55% Total Marketing Spend vs. New Logo Bookings $15K-$75K new logo deal size: 57% Total Marketing Spend vs. New Logo Bookings >$75K new logo deal size: 20% Total Marketing Spend vs.
New Logo Bookings It’s interesting to me that the marketing spend for companies with large deal sizes is much lower. Also, I note that these numbers aren’t as useful if your deal sizes are around that $75K break point, since the difference between the two lines is so significant. So here’s another (even more detailed) way to get to the same outcome: take the % of total sales and marketing investment that goes to marketing, and divide it by your Magic Number (new logo bookings as measured in ARR growth, divided by total sales and marketing investment) and you’ll get the total marketing spend as a fraction of new ARR logo bookings: Total marketing spend as a fraction of new ARR logo bookings Here’s an example.