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.
Image Description
The image is a slide titled "Where are founders putting their marketing dollars?" from the 2024 Wealth Report. It shows a table detailing average marketing spend by industry and channel, with a focus on platforms like Twitter, LinkedIn, Google, and Meta. Key insights include a high percentage of ad spend directed towards Meta and Google.
Positive Aspects
This image effectively complements the blog post by providing a visual breakdown of marketing spend across different industries and platforms. It highlights the dominance of Meta and Google in advertising budgets, reinforcing the blog's insights about strategic allocation. The inclusion of specific numbers adds credibility and depth to the analysis.
Key Takeaways
- Founders are heavily investing in Google and Meta, with agencies and SaaS companies allocating around 70-75% of their budgets to Google.
- Direct-to-consumer (DTC) brands are focusing extensively on Meta, with 95% of their marketing spend directed there.
- There is a clear correlation between higher marketing spend and company growth, with successful companies spending significantly more than those with flat or declining profits.
- Wealthier founders tend to invest more in marketing, with those worth $20-50 million spending up to $4.1 million annually.
- Companies are increasingly shifting budgets to LinkedIn, especially agencies and SaaS companies, to target professional audiences.
Additional Insights
It's fascinating how the data illustrates a kind of "spend-to-grow" mentality among successful companies. The logic is simple yet powerful: when something works, amplify it. This approach can be likened to pouring gasoline on a fire. It’s also interesting to see the rise of LinkedIn in certain sectors, possibly due to its professional user base. For marketers, understanding these patterns and adjusting strategies accordingly could be the key to unlocking new levels of growth.
