Marketing Budgets On the Rise?

Results of a marketing survey by MarketingProfs and Forrester Research on budget and spending may surprise you as much as it did me.

I recently left a marketing environment where the COO put her marketing team and budget on the back burner (with the flame turned to the "Off" position). Her reasoning behind the drawback was to "make salespeople more responsible and accountable". As a marketing professional, working under this directive was frustrating because it's my experience and belief that marketing is an investment and its role is to help fill the sales pipeline with prospects.

Our marketing team had been working in a suppressed environment for nearly a year. Add to that what's reported in the news about the impact that a struggling economy and looming recession is having on businesses and I would have assumed that most companies were following suit by slashing their marketing budgets.

Not so.

According to the report, B-to-B Marketing in 2008: Trends in Strategies and Spending, only six percent of the companies reported lowering their marketing budgets from 2007 at an average decrease of 18 percent. That's compared to an average budget increase of 26 percent for nearly half (49%) of the companies that responded. That leaves 46 percent who expected no change in their budget from 2007 to 2008.

Proportioning the Budget
So, how are most companies allocating their budgets? According to the survey, the biggest portion (50%) of the budget is going toward Product Marketing (18%), Branding/Advertising (17%), Field Marketing (15%). Marketing research (7%) and Inside Sales (7%) each received the smallest proportions. Other areas receiving financial support included Corporate Communications ( 12%) and Channel/Partner Marketing (9%).

Tactics
It comes as no surprise to me that the majority of companies are focusing their attention on emerging technology. Online Video, Podcasts (or Rich Media), Search Marketing, Other Web 2.0 Media, and Webinars each received high marks with a greater than 50 percent increase. Print, Direct Mail and Radio received the lowest marks with either "decrease" or "no change" greater than 75 percent.

Making Sense of the Numbers
What do these numbers confirm? Besides validating my belief that my former company was going down the wrong marketing path, it tells me that:

1. Companies are embracing new tactics and trying to stay ahead of the technology curve. By integrating and implementing new Web 2.0 tactics in place of traditional print and media, they are reaching a bigger, more targeted audience at a lower investment.
   
2. Most companies understand that product marketing and branding are the foundation of a solid sales initiative by creating top-of-mind awareness, making it easier for the sales people succeed when clients and prospects have a higher level of familiarity with the company or product.
   
3. Customers want to be educated and informed. Webinars, Executive Breakfasts/Luncheons and Trade shows allow companies to interact, sample and evaluate products, services and even the company personnel.
   
4. Most importantly, as the report points out, the respondents view marketing as an "investment" and not an "expense". Marketing should be intended to generate a return on investment and not looked upon as throwing money to the wind.

In his book, Your Marketing Sucks, author and popular blogger, Mark Stevens drives home the point that your marketing efforts have one purpose - to grow your business and generate a return on investment. If your marketing returns just one more dollar than you've spent, then you've been successful.

If you'd like to learn how you can get a copy of the MarketingProfs/Forrester report
B-to-B Marketing in 2008: Trends in Strategies and Spending, send me an email at brian@btkmarketing.com with "MarketingProfs Report" in the subject line. Visit my website at www.btkmarketing.com to learn how BTK & Associates can help energize your marketing and sales efforts.