Technology marketing investment on the rise!

Tech marketing spending is on the rise again and will increase by 7.5%, the highest growth rate in four years, according to a report from IDC. While tech marketing investment will climb this year, it will also outpace global IT spending (again!), which will be up 7.0%, IDC found.

IDC’s annual benchmark study found that about 40% of tech companies are seeing declining marketing budget ratios (MBR) despite an increase in marketing spending. MBR is defined as marketing expense as a percent of total revenue and typically is seen in the 3-5% ratio – with IT firms mostly around 3%

Software companies will lead the pack in marketing spending this year, increasing their marketing budgets by an average 9.4% over last year, IDC found. Hardware companies will increase marketing spending by an average 5.4%, while pure play service providers will boost marketing budgets the least by only an average of 5.3%.

IDC also looked at how tech marketers will allocate their marketing dollars. To me the most interesting stat was the program to comp ratio of 65%, indicating relatively lean teams and reserving maximum budget for pure programs – probably outsourced!

Good News, Bad News – where’s the Buzz? – Keep a watchful eye on your MBR and your program to comp ratio. This is a good time to take inventory your “in house” skills and look for where you may need to add to your mix with an outsourced vendor to help you get the yield from that increased budget!

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