Nobody knows for sure what percentage of overall (so-called) economic activity now goes into marketing. As reported in The Consumer Trap book, experts in the early 1990s guesstimated that it was something like 1/7. Because even that probably didn’t including the share of expenses of actual production that are explained by marketing considerations, that, stunning a number as it was, was probably a severe under-statement.
In any event, here is some new data from Gartner, Inc. on this important topic:
Marketing leaders surveyed estimate their budgets, on average, total 12% of revenue, marking the third consecutive year of increases in Gartner’s CMO Spend Survey results. Larger companies tend to spend a higher proportion of their revenue on marketing — 13% at companies with more than $5 billion in annual revenue versus 10% at smaller companies that have $250 million to $500 million in annual revenue.
This, again, doesn’t count the costs of marketing’s penetration into production. But, generally speaking, it corroborates the idea that a huge chunk of corporate capitalism’s output is marketing/social engineering/economic waste.