Internet Advertising: How much of a brands marketing budget is spent on online advertising?
The answer is “not enough”, based upon now much time people are spending online versus other forms of “media.” The last estimate I saw suggested that 30% of media consumption time in the US was online, yet only ~15% of media dollars were spent there. However, i would suggest that the correct answer is dependent on your brand’s business objectives and model. If you’re a hotel chain, you might want to spend as much as 50% of your marketing budget online, due to the amount of transactional business conducted online in that category. If, on the other hand, you are a toilet paper manufacturer, you may want to spend less than 5% of your budget online, with most CPG brands spending more than 50% of their marketing budgets on trade marketing (versus consumer marketing), and TV plus consumer price discounts still seem to be the most important drivers of grocery store sales, etc.