The coronavirus pandemic had a huge impact on virtually every walk of life, but much of its impact was not even seen in the first year. In 2020, when the coronavirus was at its zenith, companies were dedicated about 11% of their total revenue to their marketing budgets. However, in 2021 this dipped down to 6.5% because of the fact that this is the sort of thing that could potentially end up allowing that money to go elsewhere during a tough financial strait.
According to a new Gartner survey, this trend seems to be seeing some signs of improvement. Companies are now dedicating around 9.5% of their revenue towards marketing for 2022 if this survey is anything to go by. That’s not as high as the share that marketing got in 2020, but in spite of the fact that this is the case it is definitely a step in the right direction with all things having been considered and taken into account.
With all of that having been said and now out of the way, it is important to note that financial services, media and tech product related companies are devoting the largest revenue shares towards marketing coming in at 10.4% and 10.1% each respectively. The lowest share was seen in the hospitality industry, where only a meager 8.4% was spent on marketing due to the low number of travelers that are expected despite more relaxed security measures.
Media and tech companies saw the biggest jump, going up to 10.1% from 5.8% and 5% respectively. Financial services saw a smaller increase from 7.4% to 10.4%, likely because people still wanted these services during a financial downturn.
Interestingly, companies offering consumer products have actually reduced the share of their revenue that goes to marketing. They have gone from spending 8.3% of total revenue to just 8%, and there doesn’t seem to be a good explanation for this other than inflation is making purchasing power less prevalent in various markets.
This shows that companies are becoming more confident in their futures and we might see a resurgence in 2022.
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According to a new Gartner survey, this trend seems to be seeing some signs of improvement. Companies are now dedicating around 9.5% of their revenue towards marketing for 2022 if this survey is anything to go by. That’s not as high as the share that marketing got in 2020, but in spite of the fact that this is the case it is definitely a step in the right direction with all things having been considered and taken into account.
With all of that having been said and now out of the way, it is important to note that financial services, media and tech product related companies are devoting the largest revenue shares towards marketing coming in at 10.4% and 10.1% each respectively. The lowest share was seen in the hospitality industry, where only a meager 8.4% was spent on marketing due to the low number of travelers that are expected despite more relaxed security measures.
Media and tech companies saw the biggest jump, going up to 10.1% from 5.8% and 5% respectively. Financial services saw a smaller increase from 7.4% to 10.4%, likely because people still wanted these services during a financial downturn.
Interestingly, companies offering consumer products have actually reduced the share of their revenue that goes to marketing. They have gone from spending 8.3% of total revenue to just 8%, and there doesn’t seem to be a good explanation for this other than inflation is making purchasing power less prevalent in various markets.
This shows that companies are becoming more confident in their futures and we might see a resurgence in 2022.
