Tag: Social Media

Marketing Spend: One Size Rarely Fits All

Marketing spend for a typical financial services firm varies based on company size, target market, and business goals.

Most financial firms allocate 7% to 10% of revenue to marketing, with digital-first firms spending on the higher end.

Here’s a breakdown of how that budget is typically distributed:

Digital Marketing (40-50%)

  • Paid Advertising (15-20%) – Google Ads, LinkedIn Ads, Facebook Ads, and programmatic display ads for lead generation.
  • SEO & Content Marketing (10-15%) – Blog posts, whitepapers, case studies, and optimizing for organic search traffic.
  • Email Marketing (5-10%) – CRM platforms (HubSpot, Pardot, Mailchimp) for lead nurturing and automated outreach.
  • Social Media Marketing (5-10%) – LinkedIn, Twitter, YouTube, and financial community engagement.

Events & Sponsorships (15-20%)

  • Webinars & Conferences (10%) – Hosting financial literacy webinars, attending industry summits.
  • Partnerships/Sponsorships (5-10%) – Collaborating with fintechs, sponsoring finance-related events.

Traditional Marketing (10-15%)

  • Print & Direct Mail (5%) – High-net-worth (HNW) client outreach via premium financial reports or brochures.
  • TV/Radio & Outdoor Ads (5-10%) – Targeting mass-market consumers (less common for boutique firms).

Branding & Creative (10-15%)

  • Website Development (5%) – UX/UI updates, security, and lead capture optimization.
    • Graphic Design & Video (5-10%) – Explainer videos, client testimonials, professional branding materials..

Data & Analytics (5-10%)

  • Marketing Automation & CRM (3-5%) – Salesforce, Marketo, HubSpot for managing customer journeys.
  • Market Research & Competitive Analysis (2-5%) – Tracking trends, customer behavior, and competitor strategies.

Public Relations (5-10%)

  • Media Outreach (3-5%) – Press releases, PR agency retainers, reputation management.
  • Influencer & Thought Leadership (2-5%) – Engaging finance influencers, publishing expert articles.

Total Marketing Spend as % of Revenue

What is your firm’s Marketing spend, knowing one size does not fit all, are you aligned with the below?

  • Established firms: 7-10%
  • Fintechs & aggressive growth firms: 10-15%
  • Boutique financial advisors: 5-8%

Sources:

  • Asymmetric Marketing
  • ChatGPT
  • Gartner

Advantages of Social Media for Small Businesses

Social media can be an effective tool for small businesses to increase visibility, engage with customers, and grow their brand. Here are some advantages of using social media for your small business:

  1. Increased brand awareness: Social media can help you reach a wider audience and promote your business to potential customers who might not have heard of you otherwise.
  2. Improved customer engagement: Social media allows you to interact with your customers in real-time, respond to their inquiries and feedback, and build stronger relationships with them.
  3. Cost-effective marketing: Compared to traditional advertising methods, social media can be a more cost-effective way to promote your business and reach your target audience.
  4. Increased website traffic: By sharing links to your website on social media, you can drive more traffic to your site and potentially increase sales.
  5. Competitive advantage: If your competitors are not utilizing social media, then you have an opportunity to stand out and differentiate yourself from the competition.
  6. Valuable insights: Social media analytics provide valuable insights into your audience and how they interact with your content. This information can help you optimize your social media strategy and improve your business overall.

Overall, social media can be a powerful tool for small businesses looking to increase brand awareness, engage with customers, and grow.