2013 Marketing Budgets Rising Again for High-Tech Providers

By Richard Fouts | September 10, 2012 | 3 Comments

Gartner’s annual marketing budget research with high-tech providers found increased budgets in every type of provider, in every geography, and every size of provider.

Conducted in August, 2012 with 383 providers (hardware, software, IT professional services, communications services and semiconductor companies) in the U.S., Europe and Asia Pacific, highlights of the research include:

One-third of providers are planning to spend over 8% of revenue on marketing in 2013. 15% of providers are planning to spend over 10% of revenue on marketing in 2013.

  • The average 2013 marketing budget shows a 13% increase over the 2012 average.
  • 2013 marketing budgets are increasing for 44% of providers, flat for 47%, and decreasing for 9%.  However the net change from 2012 represents an increase across all provider types.
  • Providers with greater than $1B in revenue are increasing their 2013 marketing budgets more than smaller providers.
  • China and India-based providers lead the 2013 marketing budget increases.
  • The average provider marketing budget has increased from 3.7% of revenue in 2010 to 6.2% in 2013, but high-tech providers’ marketing budgets still lag those of other industries.
  • Three-quarters of providers have their own capital budget, and 85% control it within marketing.
  • 40% of providers have a capital budget of over $1 million; 15% of them have a capital budget over $10 million.
  • One-third of spending on marketing technology is for capitalized software and infrastructure; two-third is for services.

Colleague Laura McLellan believes even the average 6.2% of revenue providers say they plan for 2013 is understated, with additional “shadow” marketing spending occuring in the regions and in other functions.

Check out our free webinar “Planning 2013 Marketing Budgets” to be held on Tuesday, September 11th at 11 AM EDT.

Look for detail in the forthcoming series of reports, starting with “Marketing Essentials: High-Tech and Communications Provider Marketing Budgets, 2013” to be published in October.

Register for the September 11th webinar here.

 

 

 

3 Comments
  1. 13 September 2012 at 1:42 pm
    Tom Bannan says:

    As a digital marketer, I am thrilled to hear more companies are increasing their marketing budget. I haven’t heard of too many companies making money by cutting back on their marketing budget. The key is harnessing the correct medium that reaches your desired consumer. I was able to attend Digital World Expo last year as a college graduate and learned I was well behind the power curve with interactive marketing strategies. It’s a great resource for new mediums and a step away from the “traditional” mediums. Thrilled to see marketing budgets are on the rise though.

  2. 25 July 2013 at 5:57 am
    Can sure bet on sports for a living says:

    I in addition to my friends happened to be checking out the excellent secrets and techniques on the website and then quickly I had an awful suspicion I had not thanked you for those techniques. Most of the women had been totally warmed to study them and have in effect quite simply been enjoying these things. I appreciate you for truly being quite helpful and for opting for this form of quality things most people are really desirous to understand about. My personal honest apologies for not expressing gratitude to sooner.

  3. 5 September 2013 at 2:34 pm
    Bruce Aboudara says:

    Does anyone know if the spend includes personnel or just Infrastructure and Services as seemingly mention?

Leave a Comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>