Tag: Spend

Temu’s ad spend soars as it embarks on a marketing blitz

Online marketplace Temu is counting on a deluge of ads — whether that’s through social media, paid search or television — to win over shoppers.

According to a new study by MediaRadar, Temu’s ad spend jumped 1,000% year-over-year for the period from January to November 2023. Seventy-six percent of Temu’s ad spend for the period went to social media, compared to 13% on digital display ads, the ad intelligence platform found. Temu is also funneling more money into TV and plans to run an ad during the Super Bowl for the second year in a row, according to the Wall Street Journal. Modern Retail reached out to Temu for comment on its marketing spend, but the company said they could not provide comment at this time.

Temu’s appeal lies in its low-priced items such as $2 scrunchies and $10 sneakers. It is a fairly new company, having launched in the United States in September 2022. But, over the past year and a half, it’s managed to grow a large volume of sales by placing ads on TikTok, Instagram, Google and nearly every other channel where people shop. MediaRadar told Modern Retail that from September through December 2023, Temu spent more than $517 million in national advertising. While Temu’s parent company (the Chinese-based PDD Holdings) does not divvy up sales by brand, PDD’s total revenue last quarter reached 68.84 billion yuan ($9.67 billion), an increase of 94% year-over-year. Going forward in 2024, Temu shows no signs of slowing its advertising ambitions.

Like Shein, Temu has resorted to a digital marketing blitz to acquire new customers. Goldman Sachs analysts estimate Temu spent about $1.2 billion on Meta in 2023, and Meta calculated Temu ran 8,900 ads on its platforms last January. Last February, Temu ran its first-ever Super Bowl ad, a

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How Much do Small Businesses Spend on Advertising?

Small businesses are spending more on their marketing budget numbers. In fact, advertising expenses have gone up almost 4% in 2023 from the previous two years. Deloitte reports advertising budgets will make up about 13.6% of the total for these enterprises this year.

What is The Average Marketing Budget for a Small Business?

The average marketing budget for a small business varies depending on the industry, the size of the business, and the marketing goals. However, a good rule of thumb is to spend between 7% and 10% of your gross revenue on marketing. According to Salesforce, B2C companies should spend 15% of their revenue on campaigns. Hubspot reports the average spend for a business was 8.7% of total revenue last year.

For example, a small business with $1 million in annual revenue could have a marketing budget of $70,000 to $100,000. This budget could be used to cover a variety of marketing expenses, such as:

  • Advertising: This includes paid advertising on channels such as Google, Facebook, and Instagram.
  • Content marketing: This includes creating and distributing blog posts, articles, e-books, and other content that attracts and engages potential customers.
  • Public relations: This includes generating positive media coverage for your business.
  • Events and trade shows: This includes attending and exhibiting at industry events and trade shows.
  • Search engine optimization (SEO): This involves optimizing your website so that it ranks higher in search engine results pages (SERPs).

The specific marketing channels that you use will depend on your target market and your marketing goals. However, by investing in a solid marketing budget, you can reach more customers, generate more leads, and grow your business.

Here are some additional tips for creating a small business marketing budget:

  • Start by setting your marketing goals. What do you want to achieve with your marketing
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Influencer ad spend growing faster than traditional ad investment

Influencer ad spend is accelerating faster than investment in traditional adverts.

Brands were advised to consider adjusting their campaign strategies to align with the rising popularity of influencers after this finding was revealed in Insider Intelligence’s Influencer Marketing 2023 report.

Why we care. As more businesses embrace influencer marketing, the way people consume ads is shifting. This suggests that traditional ads might not work as well anymore. Advertisers should stay updated on these changes to ensure they get the most out of their ad investments.

Screenshot 2023 09 08 At 15.13.19 562x600

Income breakdown. The report included a detailed breakdown of how influencers are generating incomes on their platforms (% of respondents):

  • Sponsored content – 82%
  • Affiliate – 56%
  • Advertising revenue – 33%
  • Creatore funds – 25%
  • Paid content subscriptions – 16%
  • Selling merchandise – 15%

Influencer opportunities on the rise. The Hollywood writers’ strike could create more chances for influencer marketing, which may accelerate influencer ad spend even further, according to the report. This is because content creators are likely to seek alternative ways to make money during the strike. Additionally, social platforms are actively trying to attract top creative talent, which is likely to open up more possibilities for brand partnerships.


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What has Insider Intelligence said? A spokesperson from Insider Intelligence said in the report:

  • “The time to act is now. Influencer marketing spending will rise roughly 3.5 times faster in 2023 than social ad spending will. That’s a testament to the resilience of creators, even amid economic concerns and major competition.”

Deep dive. Download the complete Insider Intelligence report and read it in full for more information.


New on Search Engine Land

About the author

Nicola Agius

Nicola Agius is Paid Media Editor of Search Engine Land after joining

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2024 global ad spend will surpass $1 trillion: report

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Global ad spending is predicted to exceed $1 trillion in 2024, according to a report from marketing research firm WARC.

Spend is expected to increase 8.2% next year, the report estimates, while this year it’s set to jump 4.4% to $963 billion.

Alphabet, Meta, Amazon, Alibaba, and TikTok parent ByteDance will pull in 51.9% of all ad spend next year, per WARC’s analysis. Nitin Sinha, head of paid media at ad agency Laundry Service, told Marketing Brew he isn’t surprised that advertising spend could hit $1 trillion next year, especially considering the many advertising options these tech companies offer.

“As you would expect, some of these companies rely so heavily on advertising as their sources of revenue, so they’ve done a good job of optimizing that and giving advertisers a lot of options,” he said, pointing to YouTube’s move into short-form video as an example.

Besides examining total growth, the report broke down expected global ad spend growth by channel. It predicted that social media will experience the fastest growth next year, accounting for a fifth of global ad spend and reaching $227 billion. Meta will likely account for the lion’s share (64%) of spending in this category. Retail media will also boom, rising an expected 10.2% this year and 10.5% in 2024 to reach ~$142 billion, with Amazon accounting for 37% of that category’s spend.

The report also examined global ad spend data by sector, finding that financial services, tech and electronics, and pharmaceutical and health industries will likely experience the fastest growth. In terms of spend by country, the US will bring in about a third of global ad

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Business Spend Management Software Market: Transforming Financial Operations

DUBLIN, Aug. 25, 2023 /PRNewswire/ — The “Business Spend Management Software Market, By Component, By Solution, By End-use Industry, and By Region- Size, Share, Outlook, and Opportunity Analysis, 2023 – 2030” report has been added to ResearchAndMarkets.com’s offering.

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In the realm of business operations, the global Business Spend Management Software Market takes center stage, poised to reach a remarkable valuation of $38.68 billion by 2030 from $18.43 billion in 2023, with a robust CAGR of 11.2%.

Unveiling Business Spend Management: A Holistic Perspective

Business Spend Management (BSM) Software orchestrates diverse business processes, encompassing Procurement, Invoicing, Expense Management, and Other Cash Disbursements, all supported by cutting-edge software. It encompasses Budgeting, inventory management, contract lifecycle management, supplier management, strategic sourcing, and analytics.

Functioning in tandem with Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), and Human Capital Management (HCM), BSM employs multiple technologies to automate spend-related activities, creating a streamlined procure-to-pay (P2P) process. BSM offers real-time spending insights, facilitating thorough analysis across all expenditure categories.

Dynamic Market Dynamics:

Drivers:

Restraints:

Market Opportunities:

Key Features of the Study:

  • Exploration of potential revenue streams across segments and insightful elucidation of attractive investment propositions.

  • Critical insights about market drivers, restraints, opportunities, new product launches, regional outlook, and competitive strategies embraced by industry leaders.

  • Profiling of industry leaders based on parameters like company overview, financial performance, product portfolio, geographical presence, market capital, key developments, strategies, and future plans.

Deciphering Insights for Informed Decision-Making:

Insights from this report empower marketing professionals and management authorities to make judicious choices regarding future product launches, product enhancements, market expansion, and marketing strategies. Stakeholders can leverage the array of strategy matrices used to analyze the global Business Spend Management Software Market, simplifying their decision-making process.

Detailed Market Segmentation:

Global Business Spend Management Software Market, By Component:

  • Software/Platform

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How Much do Small Businesses Spend on Advertising?

Small businesses are spending more on their marketing budget numbers. In fact, advertising expenses have gone up almost 4% in 2023 from the previous two years. Deloitte reports advertising budgets will make up about 13.6% of the total for these enterprises this year.

What is The Average Marketing Budget for a Small Business?

The average marketing budget for a small business varies depending on the industry, the size of the business, and the marketing goals. However, a good rule of thumb is to spend between 7% and 10% of your gross revenue on marketing. According to Salesforce, B2C companies should spend 15% of their revenue on campaigns. Hubspot reports the average spend for a business was 8.7% of total revenue last year.

For example, a small business with $1 million in annual revenue could have a marketing budget of $70,000 to $100,000. This budget could be used to cover a variety of marketing expenses, such as:

  • Advertising: This includes paid advertising on channels such as Google, Facebook, and Instagram.
  • Content marketing: This includes creating and distributing blog posts, articles, e-books, and other content that attracts and engages potential customers.
  • Public relations: This includes generating positive media coverage for your business.
  • Events and trade shows: This includes attending and exhibiting at industry events and trade shows.
  • Search engine optimization (SEO): This involves optimizing your website so that it ranks higher in search engine results pages (SERPs).

The specific marketing channels that you use will depend on your target market and your marketing goals. However, by investing in a solid marketing budget, you can reach more customers, generate more leads, and grow your business.

Here are some additional tips for creating a small business marketing budget:

  • Start by setting your marketing goals. What do you want to achieve with your marketing
Read More ...

Amazon resurfaces ‘spend less’ messaging for back-to-school ads

Dive Brief:

  • Amazon on Monday (July 17) debuted its 2023 back-to-school campaign starring actor Randall Park, known for his role in “Fresh Off the Boat,” according to details shared with Marketing Dive.
  • Campaign spots in 30-, 15- and 6-second versions feature Park encouraging parents to spend less on school supplies by taking advantage of Amazon’s deals. The effort will span TV, online video, digital and social media throughout the summer.
  • The move, which follows similar messaging used by Amazon for its 2022 back-to-school campaign, arrives as parents continue to grapple with ongoing macroeconomic tensions that have impacted the way they spend during the season.

Dive Insight:

Amazon is doubling down on deals this back-to-school season as it vies to stay relevant in a landscape dominated by shrinking budgets, a theme that similarly cast a shadow over last year’s back-to-school season. During the period this year, families with students in kindergarten through 12th grade are expected to spend a total of $31.2 billion, a 10% year-over-year decline from last year, according to Deloitte findings.

“Back-to-school advertising is all smiling kids, bright colors and happy music. But no one talks about the elephant in the classroom: Back-to-School season is an annual reminder of how incredibly expensive it is to raise children,” said Jo Shoesmith, executive world wide creative director at Amazon, in release details. “That’s especially true in this age of steep inflation, when it’s hard to afford eggs, much less backpacks.”

Amazon itself hasn’t been immune to a cost-cutting mindset, having in recent months undertaken mass layoffs and pulled back on strategies like opening more physical store locations. These moves helped Amazon beat analysts expectations in Q1, when revenue increased 9% and the company posted a profit of $3.2 billion.

At the center of Amazon’s new campaign is a tongue-in-cheek

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How Much do Small Businesses Spend on Advertising?

Small businesses are spending more on their marketing budget numbers. In fact, advertising expenses have gone up almost 4% in 2023 from the previous two years. Deloitte reports advertising budgets will make up about 13.6% of the total for these enterprises this year.



What is The Average Marketing Budget for a Small Business?

According to Salesforce, B2C companies should spend 15% of their revenue on campaigns. Hubspot reports the average spend for a business was 8.7% of total revenue last year.

What Marketing Costs Need to be taken into Account?

Small businesses have two different marketing and advertising budget costs. These can be subdivided for a target audience that prefers online marketing, or offline small business tools.

Online Advertising Budget

Content marketing is a big part of the efforts that go into a budget. Online advertising costs are different for B2B and B2C businesses.

Digital advertising had an estimated worth of $210 billion by 2022.

Offline Advertising Budget

As you might expect, not everyone has an ad spend geared exclusively toward digital advertising. Traditional advertising also has a role and a budget process to get repeat business.

how much do small businesses spend on advertising

1. Online Advertising: Marketing Budgets for Small Businesses

Last year alone, around $616 billion USD was spent on digital advertising globally. The following are some of the best investments in that space.

Google Ads

This is a fairly simple way to draw in potential customers. It is Google’s online advertising tool. Your business needs to choose keywords that align with your goals. This option is also called Google Adwords.

Social Media Marketing

Simply put this is about creating content that promotes your product and services. Don’t put all your eggs in one basket — many businesses use a variety of platforms like Instagram and Facebook.

Search Engine Optimization

SEO is about optimizing

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3 Ultra-Profitable Corporations to Spend in for the Very long Haul

Just one issue you must generally take into account when choosing a inventory is how rewarding the underlying business enterprise is. If its revenue margins are very low, then it could quickly swing to a reduction if it faces headwinds or the economic climate as a whole struggles. A better gain margin can also develop an important buffer for the small business, allowing for it to lessen selling prices if it desires to be extra aggressive or to far better cope with inflationary pressures.

A few organizations that are doing extremely well with financial gain margins of 20% and greater include AbbVie (ABBV .08%)Nvidia (NVDA 5.14%), and Visa (V .82%). These are stocks that should do properly this yr irrespective of inflation and could make for great very long-expression investments.

1. AbbVie

Drugmaker AbbVie has documented $13.3 billion in earnings around the trailing 12 months, which is nearly a single-quarter (23%) of its top line of $57.8 billion for the duration of that time. The small business has been growing over the many years, helped by its $63 billion buy of Botox-maker Allergan in 2019, which diversifies its operations and presents it a new growth prospect.

Between immunology, oncology, aesthetics, neuroscience, eye care, and other merchandise, AbbVie’s enterprise seems good and poised for far more expansion in the yrs ahead.

Though investors are involved with the looming patent cliff for Humira, its prime-offering rheumatoid arthritis treatment, management is confident that immunology medications Skyrizi and Rinvoq mixed can in the end make up for the reduction in income.

The healthcare company’s rock-stable operations have enabled AbbVie to create totally free dollars flow of just beneath $22 billion in excess of the previous calendar year, placing it in wonderful form to face up to any

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