What Percentage of Budgets are Spent Online
Taken from OGILVYINSIGHT: “The Top 10 Digital Questions Every Marketer Wants Answered”
Jim Dravillas ( OgilvyOne worldwide - New York )
Namita Moolani ( OgilvyOne worldwide - New York )
Rori DuBoff ( OgilvyInteractive - New York )
Sean MacDonald ( OgilvyOne worldwide - New York )
What percentage of budgets are spent online, per industry? What kind of media spend do you have to put behind online advertising for it to be effective?
Referencing the percentage allocation of media budgets as a measure to determine optimal online spending can be tricky, because marketing budgets vary greatly by company and industry. For example, top automotive online advertiser, General Motors, only allocated 3.5% of their total budget online (Jan-Nov 2005), but this translates to $86 million for this auto giant27. On another note, while GM continues to cut its offline ad budgets, its allocation to online will increase, clearly pointing to the effectiveness of the medium for this company.
Understanding appropriate online budget allocation often means benchmarking your business against the big players in the category, and understanding the role online is playing in the overall marketing and communications strategy. The following chart is based on Jupiter Research numbers and forecasts28. Industry categories are grouped based on online media allocation as a percentage of offline spending.
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