If I meet someone from Vital, I’m going to hug them for this infographic. We recently shared a post on the right marketing budget as it refers to a percentage of overall revenue, but this provides some in-depth budget expenditures that support and reinforce the other infographic.
A few years ago, we were working with a Software as a Service provider in the Marketing Automation industry that was spending less than a six-digit overall annual budget with us to help drive their market share.
We made significant progress with them, growing the visits, shares, and sales-qualified leads double-digits each year. The budget never changed, but the demands seemed to increase until we were doing infographics, explainer videos and even built multiple sites for them. They rotated through staff, and each one wanted to switch directions, so momentum was impacted.
Regardless, it was often fun to see the content we created for them taking center screen on industry sites knowing that the company was spending a fraction of what the big players were in that industry. We were and are proud of how much we can move a needle with minimal resources. It’s perhaps our most significant strength.
Then one day it happened.
Hey, we’re spending a ton of money with you and we’re getting our butts kicked by _________.
That’s like me wondering why Mike Tyson was able to knock me out in the first round.
The ton of money per their budget was less than $0.005 per every $1 in marketing the company they referenced from this infographic was spending. I hesitate to call the company their competitor, but they did so I will. Their competitor had regional and national events, paid search campaigns, a library of premium content, a channel of videos across every topic, and a huge advertising spend across all industry sites. My jaw dropped; we wrapped up the engagement and walked out.
Since we serve both mature enterprise SaaS providers and small startups, it’s pretty fascinating to see where the waste is, where the impact is, and what the budgets are. While this infographic combines all marketing and sales expenditures, it should shape how impactful an investment in great marketing and sales is for the average marketing technology company.
Spend a larger percentage of your overall revenue and it’s obvious that you’ll benefit with a greater percentage of growth. You don’t have to spend a fortune, but you do have to dig deep.