New research, from a consulting ally to fund firms, suggests that fundsters think that if you build it, they will come, even if they don't know who you are.

Michael "Mike" Evans Fuse Research Network Partner, Director of Advisor and Benchmark Research

On Tuesday, Mike Evans, director of BenchMark research at Fuse Research Network, highlighted findings from the Needham, Massachusetts-based firm's "Marketing 2024: Optimizing Marketing Strategies" report. In the report, one thing the Fuse team digs into is marketing budgets and compares them to those in other financial services industries.

On average, surveyed asset managers told Fuse that they spend an average of 2 percent of their revenue on marketing budgets. That puts fundsters behind at least four big other sides of financial services: the Fuse team notes that the retail banking industry spends 3 percent of revenue on marketing, the insurance industry spends 4 percent, wealth management spends 5 percent, and fintech spends 10 percent.

"Based on our findings, 70% of [responding asset managers] spend less than 2% on marketing as a percentage of revenue," Evans states. "Although marketing spend within asset management will never approach other industries, we continue to believe marketing is underutilized and often-under-resourced."

Evans urges fundsters to take steps to help marketing gain budgeting ground.

"Marketing budgets are unlikely to grow substantially in coming years," Evans states. "However, marketing must constantly measure their efforts and illustrate the impact on sales. This will lead to an elevated position within the organization and, ultimately, greater resources." 

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