Question

Topic: Research/Metrics

Industries With High Marketing Budget

Posted by Anonymous on 2/4/2010 at 11:41 PM ET 50 Points


I understand marketing budgets can vary anywhere from 2% - 50% of revenues.

I am looking to identify industries with high marketing budgets (20%+).

Please share if you have any insight.



Thx

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RESPONSES

  • Posted by sl/fc on 2/5/2010 at 12:35 AM Accepted
    1st is the Software industry - seen some as high as 70% of total revenue.

    then the cosmetic industry - probably average around 35%

    many more flutuating
  • Posted by Chris Blackman on 2/5/2010 at 8:12 AM Accepted
    I've heard soft drinks (soda) spend bucketloads.

    And pharmaceuticals.
  • Posted by thecynicalmarketer on 2/5/2010 at 2:09 PM Accepted
    Anything with a high gross margin including software and many services.

    Also, industries where the customer provides an ongoing annuity. Companies in these spaces are willing to incur high customer acquisition costs.

    ANything in the SaaS (software as a service) space today has very high marketing budgets as a % of revenue. For start-ups in this space, it can be over 100%.

    Good Luck, JohnnyB
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