According to Gartner analyst Laura McLellan, the top three challenges marketers face are growing profitable revenue, connecting more effectively with customers, and standing out amidst serious competition. What amount should CEOs be doling out to overcome these hurdles?
The CMO Council advises spending 1 to 10% of sales revenue on marketing per year. The budget can then be broken down by the 70/20/10 rule. This dictates that you allocate 70% of the budget to tried and true channels, 20% to safe bets, and 10% to experimental opportunities that may provide a big payoff.