Author: Marc Ashton, CEO, Decusatio Investor Communications
As we enter 2025, there is a renewed optimism in the air as economic and sentiment indicators suggest that South Africa may be turning a corner and Gross Domestic Product (GDP) growth could top 2%.
While there is still much work to be done to get our economy firing on all cylinders, executive leadership teams are reviewing their marketing investments and deciding whether they are confident enough to invest for growth.
In the competitive world of South African business-to-business (B2B) marketing, the question of how much to invest in communications and marketing is one that many businesses grapple with. Effective B2B marketing is critical in building trust, driving growth and ensuring long-term sustainability, but the amount you allocate to these efforts can determine the success or stagnation of your brand.
The Importance of B2B Marketing and Communications
Unlike business-to-consumer (B2C) marketing, B2B marketing focuses on building relationships with other businesses, often involving longer sales cycles, higher-value transactions and a greater emphasis on trust and credibility. This could also be extended to include communications with stakeholders including investors and Venture Capital teams.
In South Africa, where the economy is heavily influenced by complex corporate ecosystems and industries such as mining, finance, and manufacturing, well-crafted B2B communications are essential.
According to global benchmarks, companies typically spend anywhere between 5% and 10% of their annual revenue on marketing. However, for B2B companies operating in South Africa, it’s not just about how much you spend but how strategically you invest.
Looking at the South African market specifically, we identify certain interest areas we are focusing on.
Investor Relations: a cornerstone of trust
One of the areas that we are particularly excited about in 2025 is the Investor Relations and Communications segment of B2B marketing.
A recent article on the Daily Maverick entitled: “South Africa’s public markets show promising signs despite delisting concerns” suggests that there are some reasons to feel optimistic as there are some suggestions that the pipeline of potential new listings on the Johannesburg Stock Exchange (JSE) and Cape Town Stock Exchange (CTSE) could tick up in 2025.
If this data is viewed in conjunction with the data compiled by the South African Venture Capital and Private Equity Association (SAVCA), there is over R3bn invested in early stage start-ups with nearly R1bn in “dry powder” available for investment.
For context, the below graph supplied by SAVCA provides an interesting overview of the distribution of the deal sizes:
The below provides an excellent visual representation of the spike in deals – it is clear that capital is being deployed.
In the South African context, where many companies are publicly listed or rely on private equity funding, investor relations (IR) play a pivotal role. Investment in IR goes beyond annual reports and quarterly updates; it’s about continuous engagement with stakeholders. By prioritising transparency and regular communication, companies can build trust, enhance their reputations and attract both local and international investors.
A robust IR strategy requires allocating budget to content creation, digital tools and platforms such as webinars, virtual investor days and even thought leadership articles.
Shrinking news rooms and investments in owned assets
One of the key trends – particularly in South African business media – is the operational challenges that business media assets face. Shrinking newsrooms are making it harder to secure coverage through traditional media channels and we are seeing an increased focus on “owned” media assets including podcasts, videos and event properties.
When assessing your marketing investment in 2025, it is important to try and make a distinction between your 3 high-level channels namely:
- Owned Media
- Bought Media
- Earned Media
In preparing your budget, you need to dig deeper than simply allocating “marketing spend” – you need to have a clear idea around how each of these channels perform and how to allocate your budgets accordingly.
CPD, trade shows and events: building relationships in person
While many marketers immediately default to digital marketing spend because it is “more measurable”, the reality is that a lot of B2B marketing takes place through person-to-person interaction. When analysed through a lens of 1.5% – 2.5% conversion rates on digital spend, could you be getting better returns through more targeted engagements with clients and stakeholders?
South African industries thrive on networking events, trade shows and conferences where businesses can connect directly with potential partners and clients. Allocating budget to participate in these events — or even hosting your own — can provide a significant return on investment (ROI).
Events and content which cater toward Continued Professional Development (CPD) are also key for the industry and may well be worth incorporating into your budget.
PR and corporate communications: managing perceptions
Public relations (PR) and corporate communications are often overlooked in B2B marketing strategies, but they are vital for managing your company’s reputation. In South Africa, a country with a strong emphasis on corporate governance and stakeholder engagement, proactive communication is essential. From media releases to crisis communication plans, ensuring your company’s voice is heard — and trusted — can make all the difference.
Calculating your marketing investment
How much should your business be investing in these areas? While global benchmarks can provide a guideline, it’s important to tailor your budget to the South African market.
As a starting point:
- Small to Medium Enterprises (SMEs): Consider allocating at least 5% of annual revenue to marketing efforts.
- Larger Corporates: A budget closer to 10% may be necessary, especially for those operating in highly competitive sectors.
- Investor Relations-Specific Budgets: Companies seeking external funding may need a dedicated budget for IR — including resources for presentations, investor reports and stakeholder events. We will cover this topic in a separate blog post shortly, but we often guide that businesses seeking to raise capital should assume an investment of 30% of the raise to cover professional advisors, communication and regulatory issues.
B2B communications and marketing: an investment, not an expense
Ultimately, investing in B2B communications and marketing is not just an operational cost — it’s a strategic investment in the growth and sustainability of your business. In South Africa’s dynamic and competitive market, companies that prioritise well-planned, targeted B2B marketing efforts are the ones that will build trust, secure partnerships and drive long-term success.
If you’re ready to take your B2B communications to the next level, contact our team today. With our expertise in investor relations, corporate communications and digital marketing, we’ll help you unlock the full potential of your brand.
