What’s a Common Budget Strategy in Traditional Marketing Organizations?

Are you wondering what’s a common budget strategy in traditional marketing organizations? No need to worry many new marketers and business owners want to know how big brands or old-school companies plan their marketing money. And guess what? It is not that complicated when you break it down.

In this guide, we will walk you through how traditional businesses handle their marketing budgets, what strategies they often use, and how you can learn from their strategies. We will also cover some latest stats and give you tips to apply this in your own business, even if you are just starting.

Let’s dive in step by step.

What Is a Marketing Budget Strategy?

Before we talk about what traditional companies do, let’s understand what a marketing budget strategy really means. A marketing budget strategy is a plan for how much money you will spend on overall marketing. It also shows where that money goes, such as ads, billboards, radio, TV, events, or printing materials. The goal is simple: spend smartly and get the best results.

What’s a Common Budget Strategy in Traditional Marketing Organizations?

So, what is a common budget strategy in traditional marketing organizations? It is the Percentage of Revenue Method. This means companies set a fixed percentage of their total revenue for marketing. Most businesses use 5% to 10% of revenue, depending on their size & industry.

For example:

• Retail companies making $1 million in revenue might spend $70,000 (7%) on marketing.
• Manufacturing companies may consider reducing their expenses, such as by 4% of revenue.

This strategy is extremely popular because it keeps spending under control and scales with the company’s growth.

Why Do Traditional Companies Use This Strategy?

Here is why traditional marketing organizations stick to the “percentage of revenue” approach:

1. Easy to Track: It is simple to calculate and adjust. You can just take a slice of your total income.

2. Scales Automatically: When revenue goes up, definitely the budget will also go up. When sales go down, spending also shrinks. Basically marketing budget is directly proportional to the total revenue.

3. Keeps ROI in Focus: It reminds businesses to match their spending with expected returns.

4. Helps With Planning: Since revenue numbers are usually known in advance, it helps plan campaigns better.

How Do They Divide That Budget?

Now you might ask, “Okay, they use a percentage, but where does that money go?” that is the question.

Let me explain it first. According to Statista (2024) & few other popular survey reports, traditional companies still spend money in these areas:

• TV ads – 36%
• Print ads (newspapers, magazines) – 23%
• Radio ads – 8%
• Outdoor (billboards, transit) – 15%
• Events/Sponsorships – 9%
• Direct mail – 10%

These numbers may vary, but the structure stays similar.

Real-Life Example: Coca-Cola

Coca-Cola is one of the biggest traditional marketing giants. In 2024, they spent almost $4.5 billion on marketing worldwide. While they have shifted some to digital, which was a great move, a significant portion still goes to TV, print, and sponsorships.

They follow a mixed-budget strategy:

• A core fixed percentage from revenue.
• Then, allocate based on region, season, and product focus.

This hybrid style helps them stay flexible but still stick to their budget framework.

Pros and Cons of the Traditional Budgeting Strategy

Pros:

• Simple and easy, clear to use
• Scales naturally with growth
• Keeps spending realistic
• Easy for CFOs and finance teams to approve

Cons:

• Does not always consider market changes
• Can limit innovation
• May ignore digital shifts and trends

So, while it is great for control, it may not fit well if you are trying new channels or testing ideas, but you can learn from your competitors by doing a SWOT analysis.

Are There Other Budgeting Strategies?

Yes, traditional organizations may also try these:

1. Objective-Based Budgeting: They first set goals, for example, acquiring 1,000 new leads & then analyze in different ways how much money is needed to reach that goal that will help you to set the marketing budget.

2. Competitive Parity: Sometimes, they match the marketing spend of their biggest competitors. This works in industries where ad visibility matters.

3. Affordable Method: This is the opposite of strategy. Companies just spend whatever is left after other expenses. It’s not ideal, but common for small businesses. Still, the percentage of revenue strategy remains the most popular in traditional setups.

How to Use This Strategy for Your Business?

Now let’s talk about you. How can you apply this to your brand or company?

Step 1: Know Your Revenue

For example, If you are making $10,000 a month & aim to spend 5% to 10% on marketing. So that’s will be $500 to $1,000.

Step 2: Pick Your Channels

If you are more offline-focused (like events or flyers), divide your budget into:

• 40% print media
• 30% events
• 20% radio
• 10% backup/testing

If you are mixing with digital, adjust accordingly.

Step 3: Measure & Adjust

Always track your return. Are flyers bringing in leads? Are local radio ads helping? If not, then think about changing your strategy every month or quarter.

Latest Data on Traditional Marketing Budgets (2024-2025)

According to recent reports from HubSpot and Forrester:

• 63% of large companies still allocate more than half of their budget to traditional marketing.
• However, 47% plan to reduce their print budgets in 2025 to shift more towards digital-first strategies.
• Direct mail surprisingly has a 29% open rate, higher than most email campaigns.

While digital is rising, traditional is not dead. It just needs smart budgeting.

Quick Comparison: Traditional vs. Digital Budget Plans

Feature	Traditional	Digital
Base Plan	% of revenue	Flexible, test-based
Channels	TV, print, radio	Social media, SEO, email
Tracking	Harder	Easier
Use Case	Big, steady brands	Startups, online businesses

Final Thoughts

So, what is a typical budget strategy in traditional marketing organizations? It is all about using a fixed percentage of revenue with less focus on CPL etc. & staying consistent with proven channels like TV, radio, and print just mostly for the purpose of brand awareness. If you are running a small business or just learning marketing, don’t ignore this old-school strategy that will help you a lot. It is simple, reliable, and easy to manage, especially if you are working with fixed monthly revenue.

Just remember:

• Keep it flexible
• Track results
• And always adjust based on what works

Traditional doesn’t mean outdated or old school strategies. It just means experienced. You can learn a lot from it. At Tech Trick Solutions, we break down every concept so you can learn easily and grow smarter.