How much should consumer goods company spend on digital marketing?

What percentage of a total marketing budget are consumer goods companies prepared to spend on digital marketing?

Top voted answer
Steve Osborne

Steve Osborne, director at Stephen Roger Osborne

While I understand the question James, if you're trying to get an average for FMCG products, it's impossible to answer.

Depends on: the total budget; the size of the company and the size of the market; the business' positioning relative to its competitors; the specific goal of the marketing; the specific industry; and the specific company.

There is no hard and fast formula, as far as I know. Because even in the same industry, no two businesses are exactly the same, and everyone's goals are different.

Other observers may completely disagree.

If you want a broad brush approach, I would estimate an established business to be spending between 2 – 12% of revenue across all marketing; and a contender business between 10 – 25%. The variance is considerable because the proportion of online to offline will alter depending on the factors above.

Can I suggest you rephrase the question and provide more specific information about the situation you're in and what you want to achieve.

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Geoff Crain

Geoff Crain at

Hi James, 
 

As Steve mentioned, this question is impossible to answer without understanding the comPanies KPI's. 

 

If the company recently transitioned to a DTC/e-commerce strategy, they may spend upwards of 80% of their total marketing budget on digital marketing. 

 

On the other hand, if the brand focuses on an older demographic with a drive to retail, digital marketing may make up only 10% of the total marketing budget. 

 

There is no one size fits all strategy. The CPG company must define its KPI's and understand the behaviour of their consumer to allocate the digital marketing budget correctly. 


 

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