Why is Marketing so Expensive?

Every business looking to grow to their brand needs a great marketing strategy, but it often comes with a hefty price tag. This often begs the question, why is marketing so expensive? 

Marketing can be expensive due to several factors, including the cost of reaching and engaging a target audience, the resources required for content creation and distribution, and the need for specialized expertise to design and execute effective strategies. Additionally, competition in the market drives up the cost of advertising, especially in digital spaces where bidding for ad placements is common. Maintaining consistency across various channels, keeping up with the latest trends and technologies, and measuring and analyzing campaign performance also contribute to the overall expense.

The percentage of a business's budget that should be allocated to marketing typically ranges from 5% to 10% of the company's total revenue, depending on the industry, business goals, and growth stage.

• Established businesses with steady revenue might allocate around 5% of their revenue to maintain their market presence.

• Growing or aggressive businesses looking to capture more market share or launch new products might allocate closer to 10% or more.

For new or smaller businesses, the percentage might be higher, sometimes up to 20% of revenue, as they need to invest more in building brand awareness and establishing a market presence.

Ultimately, the exact percentage should align with the business's specific objectives, market conditions, and competitive landscape.