Marketing budgets plummet, yet marketers are expected to do the same if not more with less. What is your client supposed to do? Many marketers are turning to SEM paid search to get results.

SEM Paid Search Leads in Advertisers' Media Spend

Marketing Budgets are Taking a Dive

According to an article from Multichannel Marketer, Chief Marketing Officers from around the country say their budgets have dropped. Between 2023 and 2024, the average marketing budget has decreased from 9.1% of company revenue to 7.1%. Only 24% of CMOs say that their budget is enough to execute their marketing strategies.

A report from Gartner says the percentage of company revenue dedicated to business-​to-​consumer marketing is even smaller. The average B2C company only has 5.7% of its revenue dedicated to marketing.

So, what are marketers prioritizing while having to do more with less? SEM paid search.

Which Marketing Channels Should Your Client be Using?

According to Multichannel Marketer, marketers are continuing to prioritize digital marketing efforts. An average of 57.1% of budgets are allocated to digital channels and the remaining 42.9% goes to traditional channels.

Yeah, we all figured that digital marketing would remain on top, especially with budgets steadily shrinking. But which channel rules the roost? Multichannel Marketer says that this is the breakdown of percentage of budget per digital marketing channel:

• Search ads: 13.6%
• Social ads: 12.2%
• Digital display ads: 10.7%
• Search engine optimization (SEO): 10.4%
• Video streaming: 10.4%
• Audio and podcast: 7.8%
• Email marketing: 7.1%
• Sponsored content: 6.1%
• Influencer marketing: 6%
• Retail media networks: 5.7%
• Digital out-​of-​home (DOOH): 5.3%
• SMS and push notifications: 4.6%

And since omnichannel marketing campaigns are super effective, let’s take a look at traditional marketing channel allocations:

• Event marketing: 17.1% of marketing budgets
• Sponsorship: 16.4%
• Linear TV: 16%
• Partner and co-​op: 14%
• Direct mail: 13.5%
• Out-​of-​home (OOH): 12.3%
• Radio: 10%
• Other: 0.6%

Paid Search

SEM paid search ads are a channel that marketers can continue to rely on. According to Gartner, paid media in general has earned a steadily increasing share of marketing budgets. It has also withstood and triumphed over the impact of the COVID-​19 pandemic.

In 2018, paid media’s share of marketing budgets was 23.2% on average. When 2020 hit and most other marketing categories started steadily declining, paid media’s share grew. Now, it makes up 27.9% of the average marketing budget, almost at par with martech’s share in 2018.

How does SEM paid search get results? According to a previous SalesFuel blog based on research from Sagefrog Marketing Group it works in more ways than one. It heightens brand awareness and website traffic and bring leads into the sales funnel.

And yes, this marketing tactic will work well for your client’s target audience as well. Just look up their profile on AudienceSCAN on AdMall by SalesFuel. There, you’ll be able to see:

• What percentage of this audience took action after seeing a sponsored search result within the last year
• Which internet search engines the audience uses the most often
• Which websites and/​or mobile apps they use to search for information about businesses
• What devices they use in general to access the internet
• Their internet usage habits

With all that information, you’ll be well equipped to help your client craft super-​effective SEM paid search ads.

Doing More with Less with AI

Of course, your client can’t do the same or more with a shrinking budget without help. Encourage them to turn to AI for assistance. A previous SalesFuel blog, based on Gartner research reports, “Over 33% of CMOs say that AI makes their organizations more time and cost efficient.”

Help them master this new generative technology to produce the best SEM paid search marketing efforts possible.

Photo by: Mimi Thian