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7 Types of Marketing Spending

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Marketing spending is a metric that captures the cost of marketing activities. It tends to be focused on areas of demand generation as opposed to activities such as product development. Marketing spending is typically used to evaluate the cost of acquiring customers, generating sales and building brand awareness. It may be benchmarked against competitors in a similar industry. The following are commonly included in marketing spending.

Overhead

The cost of marketing teams including compensation, office space and spending on things such as technology.

Sales

Sales overhead and variable spending such as commissions.

Advertising & Promotion

Advertising and promotional spending such as the cost of producing a promotional video.

Price Promotion

In some cases, price promotion such as coupon payments and processing fees are included in marketing spend.

Partners

Payments to marketing partners.

Public Relations

Teams involved with engaging the media and stakeholders such as governments and communities.

Branding

Branding activities beyond advertising and promotion such as the costs of developing elements of visual branding such as a logo.
Overview: Marketing Spending
Type
Definition (1)
A metric that captures the cost of marketing activities.
Definition (2)
The cost of acquiring customers, obtaining revenue and building brand awareness.
Notes
Marketing spend is typically customized to the industry, firm and business unit. In some cases, it only includes variable costs directly related to customer acquisition such as advertising spend and sales commissions.
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