The average marketing spend for SaaS (Software as a Service) companies can vary widely depending on the size and stage of the company, the industry, and the target market. However, according to a survey by OpenView Partners, the average SaaS company spends around 11% of its revenue on marketing.
This percentage can be higher for early-stage SaaS companies that are focused on customer acquisition, with some spending as much as 50% or more of their revenue on marketing. As a company grows and its customer base becomes more established, the percentage of revenue spent on marketing may decrease as a percentage of revenue, but the total marketing spend may still increase as the company invests in expanding its reach and driving customer engagement.
Here are a few examples of SaaS companies and their marketing spends:
- HubSpot – HubSpot is a marketing automation platform for inbound marketing. In 2020, HubSpot reported a total revenue of $883 million, with a marketing spend of $241.7 million, or around 27% of their revenue.
- Dropbox – Dropbox is a cloud storage platform. In 2020, Dropbox reported a total revenue of $1.91 billion, with a marketing spend of $402.7 million, or around 21% of their revenue.
- Zoom – Zoom is a video conferencing platform. In 2020, Zoom reported a total revenue of $2.65 billion, with a marketing spend of $295.8 million, or around 11% of their revenue.
It’s important to note that these percentages can vary widely depending on a company’s stage of growth and the industry they are in. Additionally, some SaaS companies may choose to invest more heavily in marketing in order to accelerate growth, while others may prioritize other areas of their business, such as product development or customer support.