The Hidden Cost of Content Marketing

O Percolate The Hidden Cost of Marketing Content The 2016 Non-Working Spend Report Working vs. Non-Working Spend THE TAKEAWAY The more working spend, the more people your advertisements reach. Working Spend Non-Working Spend Working spend is the amount we spend on distribution Non-working is everything else-the costs associated of marketing content across different channels-whether that's what we pay to promote a tweet or to run a TV ad. The more working spend, the more ad distribution. with producing content and measuring its effectiveness. These are necessary costs, but the more spent here, the more you could have spent on placing ads. Social Print Email Assets Legal Tech O00 TV Mobile Radio Agencies Design Employees Where is Your Money Going? 24% How Much the Most Efficient Advertisting Budgets Allot to Non-Working Spend 40% The Average Advertising Budget on Non-Working Spend THE TAKEAWAY The best marketers put more money towards working spend than the average. The Average Marketing Budget Allots 48% Everything Else to Advertising 48% Advertising Ofthe 48% that makes up the average advertising budget, it funds different media categories in these amounts Search Ads 12% Troditional 22% Display Ads 13 Brand Publishing 14% 10% Programmatic 14% 15% Social Website & Ecommerce Those advertising categories see these average non-working spend ratios N ing ing Troditional 50% () Brend Publishing 43% Social 42% Website a Ecommerce 40% Programattic 40% Display Ads 38% Search Adu 38% THE TAKEAWAY Non-working expenses make up 40% of the average advertising budget and 20% of the average marketing budget. Non-Working Spend is on the Upswing 51% -------- 2016 Believe it will increase or increase significantly in the next year. 62% Non-Working Spend 2015 Said non-working spend increased or increased significantly in the last year. Non-Working Spend 2014 How Do Industries Feel About Non-Working Spend? When asked if they agree that non-working spend has increased or increased significantly: 61% 62% 89% 65% Agree Agree Agree Agree Manufacturing Retail Consumer-Packoged Goods IT and Tech What Do People Think Drives 24% 41% Lack of Defined Process for Newer Media Brief Creation, Planning, and Media Evaluation Non-Working Spend? 33% 35% 41% Agency Costs Employee Tolent Costs Emergence of More Expensive Media Formats How Do People Want to Control Their Non-Working Spend? 47% 44% 33% 31% 26% Increasing the Number of Agency Relationships Creating Better Processes for Working with Creatives Outside of My Org Creating Better Internal Creative Provide Team Training Leveraging Technology o Systems Workflows and Processes O Percolate