COVID’s Effect on Marketing: Insights from IDC’s 2020 Investment Benchmark Survey
Posted: Sat Dec 28, 2024 9:40 am
IDC CMO Advisory Service has published results from its 18th annual Tech Marketing Investment Benchmark survey. Investment patterns provide evidence the impact COVID-19 has had on marketing’s investments. Technology buyers now use marketing-related information sources (digital and social) over sales at every stage of their decision-journey, according to IDC’s IT Buyer Experience survey.
It’s no longer enough to simply use digital to conduct traditional marketing better. IDC finds that marketing is shouldering pipeline building tasks that used to be in sales and moving into post-purchase realms to affect overall customer experience.
Impact from COVID-19
Marketing budgets among the 51 technology companies surveyed increase by an average of 0.8% in 2020. Those same companies also expect a revenue increase of 2% for the same period. IDC’s finding shows that the registered nurse database pandemic is impacting marketing departments, with a drop from last year. Out of the companies surveyed, 44% of companies grew their marketing budgets while 42% cut budgets and 14% stayed even.
In 2020, the average tech company’s marketing budget is 2.1% of revenue. However, this percentage varies by company size, sector, sales model, and growth. For example, software companies with greater than 50% of revenue from cloud have an average market budget ratio (MBR) of 6.7%, a slight increase from 4.9% last year. All benchmarks in this document are developed using a weighted average.
It’s no longer enough to simply use digital to conduct traditional marketing better. IDC finds that marketing is shouldering pipeline building tasks that used to be in sales and moving into post-purchase realms to affect overall customer experience.
Impact from COVID-19
Marketing budgets among the 51 technology companies surveyed increase by an average of 0.8% in 2020. Those same companies also expect a revenue increase of 2% for the same period. IDC’s finding shows that the registered nurse database pandemic is impacting marketing departments, with a drop from last year. Out of the companies surveyed, 44% of companies grew their marketing budgets while 42% cut budgets and 14% stayed even.
In 2020, the average tech company’s marketing budget is 2.1% of revenue. However, this percentage varies by company size, sector, sales model, and growth. For example, software companies with greater than 50% of revenue from cloud have an average market budget ratio (MBR) of 6.7%, a slight increase from 4.9% last year. All benchmarks in this document are developed using a weighted average.