How does MRX marketing measure up?
By Lucy Davison, Managing Director of Keen as Mustard Marketing
Late last year, we at Keen as Mustard Marketing joined forces with FocusVision to find out more about what was going on within MRX marketing. We really wanted to find out what issues agencies and suppliers in market research were facing, what they thought the solutions were, and how much they spent on it. The idea was to turn the mirror to face us in MRX marketing – taking a dose of our own medicine if you will. Market research agencies and suppliers advise clients on their marketing all the time, indeed many are deemed expert at it. But we wanted to find out how much we focus on our own marketing.
161 technology, data, research and insight companies in the US and UK took part, ranging in size from micro businesses to those with over $100,000,000 in turnover.
So, what did we find out? The good news is that 74% of companies who took part think marketing is very important. 63% have in-house marketing teams, and 64% expected to spend more on their marketing in the coming year. And 5% of the respondents already spend more than 15% of their revenue on marketing – a good number which compares well with a B2B Service Businesses average of 10.1%. Indeed, some high growth data and marketing firms, such as Salesforce (not in our survey) invest 53% of their revenue in their marketing.
However, the good news ended there. 75% of the companies we surveyed spend only 0-5% of their turnover on marketing. This means the vast majority are likely to be spending nothing! Plus, only 35% measure any kind of return on marketing investment to understand impact.