Published: 16 April, 2022

Which Fund Sizes Benefit The Most From Marketing Spend? And How To Get More Budget?

Marketers scrutinize their budgets. They wonder if theirs are on par with competitors.

Are they spending too much or too little? Should categories such as headcount and social media be included? Which strategic and organizational factors influence budgets?

Marketing budgets now comprise 11 percent of total company budgets on average but which size of asset manager benefits the most from marketing spend. At ProFundCom we have analysed the AuM growth based on marketing spend over the last 15  years categorised by fund size. The results are below:

Factors Influencing Marketing Budgets

Marketing as a revenue driver. Marketing must be seen as responsible for leading AuM growth Funds that have larger marketing budgets as a percentage of the overall company budget. Funds, where this happens, enables marketing’s ability to influence corporate strategy and potentially lead to larger marketing budgets.

Return on social media. Funds that are demonstrating a return on social media investments—not simply spending more—leads to larger marketing budgets.

Marketing analytics in decision-making. The use of analytics also correlates with larger marketing budgets.

Marketing and sales organization. In a fund, the organization and management of marketing and sales is an important strategic decision. Getting this right has major repercussions for AuM growth over time. Marketing with a more strategic, investor-driven focus can help ensure that sales activities do not become tactical and short-term. In something that is not see in many funds, when the sales function sits within marketing, sales can be driven to focus on the acquisition and retention of the most valuable investors for the long run.

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