Seasoned Marketer: How High-Growth Firms Budget: Expert Insights from Hinge

Budgeting is a term we know all too well in accounting, yet marketing budgets are often forgotten, nonexistent, or rarely reviewed and updated. Whether you’re new to budgeting or already have an established budget, AAM’s Marketing Budget Benchmark Study highlights the key drivers that directly influence high-growth firms.

To dive deeper into the study’s findings and their implications, we sat down with Will Casserly, Managing Director at Hinge, for an insightful Q&A.

Q: Why is the Budget Benchmark Study such a valuable resource for accounting marketers?

The study is more than just a collection of numbers—it’s a strategic tool. It provides benchmarks on how firms allocate marketing budgets as a percentage of revenue, offering insights into areas like digital maturity, CRM investments and marketing automation. For early-stage firms, it’s a roadmap to move from ad-hoc spending to a formal, well-researched budget. For more mature firms, it’s a way to track trends and compare resource allocation against high-growth firms. While other industry studies offer broad financial statistics, this study provides a much deeper level of insights into specific marketing techniques.

Q: What are some standout findings from this year’s study?

One of the most striking insights is that high-growth firms—those in the top 25% for compound annual growth rate—allocate twice the percentage of revenue to marketing compared to their peers. These firms grew 38.5% on average, which is seven times faster than low-growth firms. This underscores the importance of strategic investment in marketing.

Q: How are high-growth firms approaching digital maturity and advertising?

High-growth firms are leading the charge in digital transformation. They’re investing in tools like CRM and marketing automation to enhance efficiency and effectiveness. With the decline of organic search and the rise of omnichannel buyers, these firms are also increasing their spend on paid advertising to ensure their message reaches audiences across platforms like LinkedIn, YouTube and even ChatGPT.

Q: Events and conferences seem to be a growing focus. Why is that?

High-growth firms are prioritizing face-to-face interactions. They allocate 21% more of their marketing budgets to conferences and events than low-growth firms. Within this category, client appreciation events stand out as a top priority. Firms are looking at growth opportunities within their existing client base, and events such as these foster relationship-building and create opportunities for cross-selling and referrals.

Q: What role does marketing play in talent acquisition and retention?

Marketing is pivotal in shaping a firm’s employer brand. High-growth firms allocate 66% more budget to employer branding and recruiting marketing than their peers. In today’s competitive talent market, marketers are the storytellers who highlight why people should want to work at their firm. Marketing and HR departments are becoming increasingly more collaborative.

Q: How are high-growth firms structuring their marketing and business development teams?

A notable trend is the separation of marketing and business development functions. In high-growth firms, 62.5% have distinct teams for these areas, working collaboratively but with specialized focuses. This contrasts with low-growth firms, where these functions are often combined, leading to less strategic execution—and also a shift from prior years where high-growth firms also displayed a greater tendency to combine functions.

Q: What practical advice do you have for firms looking to leverage the Budget Benchmark Study     ?

Start by benchmarking your current budget against the study’s data to identify gaps and opportunities. Then, use these insights to build your future strategy. The study isn’t just about numbers—it’s a guide to smarter decision-making.

Q: What role does the MBBS play in helping firms adapt to changing market dynamics?

The study highlights emerging trends, such as the increasing importance of video production, paid advertising and local marketing. Firms can use this data to stay ahead of the curve, ensuring their strategies are aligned with where the market is heading. The data in the study substantiates many of the dynamic shifts underway in digital marketing. For example, if your competitors are investing in video content or CRM tools, the study provides quantifiable evidence firms need to make similar investments and remain competitive.

Q: How can smaller or early-stage firms leverage the study to compete with larger firms?

For smaller firms, the study is a blueprint for building a scalable marketing strategy. It provides insights into how high-growth firms allocate their budgets and resources, which smaller firms can adapt on a smaller scale. By focusing on high-impact areas like digital marketing, client events and employer branding, smaller firms can punch above their weight and position themselves for sustainable growth.

Takeaway

If there’s one takeaway from this Q&A, it’s to review your budget and compare it to the benchmark data provided in the study. Identify the key areas driving growth for high-performing firms, test them out and incorporate these areas into your budget. If you don’t already have a budget, use the categories outlined in the study as a starting point. This resource is designed to support your firm, no matter where you are in your growth journey.

For more information, purchase the Marketing Budget Benchmark Study here.