Regardless of size or traffic volume, every company must carefully allocate its marketing budget. This is crucial for long-term success and growth. For Slovenian companies, especially small and medium-sized ones, it is particularly important to use their budget effectively in order to reach their target audience.

An international review of budgets reveals that, on average, marketing represents about 13.6% of a company’s total budget in 2023, which is 3.9% more than in the previous two years. This increase is interesting, especially considering that many entrepreneurs expected a recession this year.

Why Do Companies Allocate 5 to 15% of Their Revenue to Marketing?

Companies allocate 5 to 15% of their revenue to marketing because this figure is often seen as the optimal investment that ensures brand visibility and growth without jeopardizing financial stability. This ensures that marketing activities support business goals without overspending. In cases of a strong focus on online sales, this percentage can increase to 5% to 10%, as digital strategies require a more intensive investment to reach the target audience.

Best Practices for Slovenian Entrepreneurs in Allocating Their Marketing Budget

Market analysis is the first step.

You need to identify where your customers are. Digital strategies allow us to test and adjust in real time, providing valuable insights into what works and what doesn’t. With careful analysis and monitoring of statistics, strategic decision-making becomes much easier.

Content is queen in the digital world.

Statistics show that 70% of consumers prefer a company that creates tailored content. This underlines the importance of investing in high-quality content, SEO, and organic reach. These strategies deliver long-term value that transcends the current trends in advertising.

But a long-term vision is key.

Globally, the trend in marketing budget investments varies, with B2C product industries allocating the most to marketing—up to 15.1% of their revenue. This is a benchmark that Slovenian companies can use when allocating their own resources.

Using different platforms and formats.

Today, marketers are increasingly investing in social media and new media platforms, with Facebook being one of the leaders. Video content is becoming increasingly popular, as evidenced by the fact that 91% of marketers plan to increase or maintain their investment in YouTube next year. TikTok is following the trend, with 56% of marketers planning to increase their investment on this platform.

Influencer marketing is also on the rise.

According to the Marketing State of Affairs Report, 68% of marketers collaborated with influencers in 2022, and 88% had a designated budget for influencer marketing. This trend continued into 2023, with 89% of marketers planning to increase or maintain their investment in influencer marketing.

An Effectively Allocated Marketing Budget Is Key!

In the Slovenian market, where resources are often limited, it is crucial to allocate your budget effectively. With a combination of analysis, organic, and paid strategies, your company can achieve sustainable success. Be strategic, long-term, and always measure your profitability while taking into account global trends and practices to ensure the optimal distribution of your resources.

Do you want to stimulate the growth of your company and break through to success? Contact Mighty Krulz Agency today and discover how we can tailor your marketing budget for maximum results. Your success is our priority!

SOURCES

- HubSpot's 2023 The State of Marketing Report