Where are founders putting their marketing dollars?
Sam Parr's tweet offers a peek into marketing budgets from over 100 founders, revealing that the average company spends nearly $1 million annually. This data is crucial for marketers to benchmark their own spending. The tweet hints at a breakdown of where these dollars go, emphasizing the importance of strategic allocation. Such insights can guide marketers in optimizing their budgets for maximum impact.
We got data from 100+ founders in Hampton about where their marketing dollars go.
Check this out: avg company spends just under $1m a year on marketing.
The most interesting part is where the money goes:
Agencies dump 75% into Google
SaaS companies? 70% goes to Google too
DTC brands are going all in on Meta (like 95% of spend)
But here's what's making a bunch of members nervous:
The correlation between spend and success is pretty clear.
Companies that grew profits this year spent $1.4m on marketing
Flat or declining companies? Only $192k
Most fascinating pattern: the richest founders spend way more
$20-50m net worth founders = $4.1m on marketing
$10-20m net worth = $1.9m
Under $5m = around $150k
Makes sense when you think about it. Once you find something that works, you pour gas on it.
We got this for the state of biz section in our 2024 Wealth Report, but decided to cut it out.
