November 7, 2008
Asset Management Marketing Budgets Are Insufficient
We continue our release of exhibits from the 2007 Beyond The Collateral research with data on marketing budgets (exclusive of compensation). Last year’s study showed that nearly half of firms (46%) with assets under management (AUM) between $15B-$50B spend less than $2 million, and 50% of firms with AUM over $50B spend less than $10 million. These represent marketing budgets that are 1 basis point or less of AUM.
Further, a large percentage of marketing budgets are spent on literature development and fulfillment. The majority (57%) of firms with AUM of less than $50B spend more than 40% of their overall marketing budget on literature development and fulfillment. Even 38% of firms with AUM over $50B spend over 40% of their marketing budgets in this manner.
Check back next Friday for the next release of another exhibit from Beyond The Collateral. The research is being re-fielded now, with results due before the end of the year.
