Marketing Budget

IDC CMO Advisory Practice: Trends, Forecasts, Benchmarks, and Essential Guidance for 2009

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Do you know how much to spend on your B2B marketing budget in 2009? How to allocate your budget across programs and headcount? Or how to split marketing programs budget between investments such as events, advertising, and PR?

IDC In this on-demand webinar, “Trends, Forecasts, Benchmarks, and Essential Guidance for 2009”, Michael Gerard, Research Vice President for IDC’s CMO Advisory Practice and Executive Advisory Group, shares new research identifying the key trends, forecasts and benchmarks for B2B marketers — and just in time for your annual budget planning process!

Available now on-demand, Michael discusses the following topics:

  • The marketing organization of the future (slides 5-7)
  • Best practices for centralizing or de-centralizing your marketing department (slides 8-10)
  • Making marketing more relevant through sales enablement (slides 11-15)

On slides 16-26, Michael also gives key benchmarks that are essential to help you plan your B2B marketing budget in 2009. (In one of my first posts, I reported on the same marketing budget benchmarks for 2006.) For example:

Marketing Investment Trends

  • Marketing Budget Ratio (marketing spend/revenue): 2.8% average (2.6% for hardware, 5.1% for software, 0.8% for services)
  • A-D (awareness spend as % of total awareness + demand): 49%

Marketing Staff Efficiency

  • Program-to-People Ratio (program spend as a % of total mktg. spend): 61%
  • Marketing Staff Throughput Ratio (program spend per staff): $293,000

Marketing Processes and Infrastructure

  • Marketing Operations KPI (MO staff per total mktg. staff): 5.2%
  • Marketing Automation KPI (spend on marketing applications software as a percent of total marketing investment): 1.9%

Slide 23 shows how companies allocate their program budgets across events, advertising, direct marketing, marketing support and sales tools, digital marketing, etc; slide 24 shows how staff is allocated across functions, and slide 25 shows how companies are allocating their digital marketing budgets across advertising, search, email, etc.

Note that these benchmarks are for large IT companies with average revenue of $6 billion a year, so smaller companies and different industries will have different ratios.

Register to watch the entire webinar on-demand now.

About the analyst: Michael Gerard joined IDC in 2003 to help establish IDC’s CMO Advisory Practice. As research vice president, he currently directs research operations and consulting engagements for the Executive Advisory Group (EAG), which includes the CMO Advisory, Sales Advisory, and Market Intelligence Practices.