Most companies spend less than 5% of marketing budgets on conversion optimization

A majority of companies (53%) spend less than 5% of their total marketing budgets on optimization activities, despite the fact that a small uplift in conversion rates can translate into millions of dollars of extra revenue.

The findings come from a new survey by Adobe which also found that companies spending more on optimization are reaping the benefits.

The Adobe 2013 Digital Marketing Optimization Survey, with analysis carried out by Econsultancy, received global responses from more than 1,800 digital marketers across North America, Europe and Asia.

It explores the key areas in which digital marketers need to excel to ensure success, including mobile, social, personalisation and customer experience.

By David Moth April 26th 2013 12:21

In a recent blog post we asked whether 2013 would be the year of conversion optimization due to the potential benefits from just a small uplift in conversion rates, however based on the level of investment revealed in the report it would seem that we are yet to reach that tipping point.

As mentioned, just over half of respondents spend less than 5% of their total marketing budgets on optimization activities, including agency fees, professional services and technology.

In total, 86% of companies surveyed allocate 15% or less of their marketing budget to optimization activities, while at the other end of the scale only 3% of respondents allocate more than half of their marketing budget to optimization efforts.

What percentage of your total marketing budget is allocated to optimization activities (including agency fees, professional services, technology)?

With so little money being invested in optimization efforts it’s no wonder that more than a third (35%) of respondents reported a conversion rate of less than 1%.

But the data also shows that companies spending more on optimization are reaping the benefits, with those investing more than 25% of marketing budgets in this area being twice as likely to enjoy higher conversion rates.

Only 16% of those who allocate up to 25% of their marketing budget for optimisation enjoy average website conversion rates of 5% and above, compared to 39% of those who allocate more than a quarter of marketing budget to this area.

Average website conversion rates and proportion of marketing budgets allocated to optimization: