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.