Data Shows Bigger Isn’t Always Better for Your Marketing Communications Budget

Data Shows Bigger Isn’t Always Better for Your Marketing Communications Budget

Up to 40% of enterprise marketing spend vanishes into coordination costs. Switching to a lean, senior‑led firm reclaims dollars for strategy and results.

May 14, 2025
Budget Optimization
Fractional Support
Agency Selection
Communications ROI

When it comes to selecting a strategic communications partner – whether for reputation management, stakeholder engagement, or internal messaging – many organizations default to large, legacy firms.

It seems like the safe choice. But what looks safe on paper often turns out to be slow, bloated, and expensive.

At MHTN, we built a different kind of consultancy: A senior-led, design-forward firm that blends strategy, storytelling, and execution – without the bloat.

The result? Clients get more value, more visibility, and more impact from every dollar.

40% Non-Working Spend: The Hidden Cost of Bloat & Complexity

Major comms firms come with big teams, long onboarding processes, and internal complexity that often slows everything down.

A Percolate survey of 300 U.S. enterprise marketing leaders revealed that so-called “non-working” spend (agency fees, project coordination, tech, legal reviews and other back-office overhead) consumes more than 40% of the typical advertising budget and about 20% of the overall marketing budget, siphoning resources away from true strategic output. 

McKinsey & Company notes that general and administrative overhead consumes roughly 4–8% of revenue among top-performing companies. For high-growth SaaS firms, this figure climbs to nearly 20% – we'd argue, delivering limited direct value to clients.

That budget’s gone before a single message hits the market.

61% of Marketers Choose Leaner Agencies: A Smarter Way to Spend

A smarter approach is one in which every engagement is led by seasoned communications strategists. No bait-and-switch. No junior handoffs. Just smart, senior minds working directly with your team from day one.

We’ve eliminated the layers so you get faster turnarounds, sharper insights, and clearer communication.

According to RSW/AgencySearch’s latest marketer survey, 61% of senior marketers rate smaller and midsize agencies as more “agile and responsive” than their larger counterparts, a perception that directly drives higher satisfaction scores and repeat work.

We hear this constantly from our clients:

  • "You move faster."
  • "You get better thinking."
  • "You actually see results."

Proof “Strategic” Doesn’t Mean “Expensive”

Harvard Business Review’s Cost-Cutting That Makes You Stronger argues that strong organizations don’t just cut costs – they reallocate toward high-impact activities.

That’s our model. You’re not paying for process. You’re investing in people who make your communications better.

Whether you’re managing your brand reputation, navigating a high-stakes issue, or preparing leadership for a major announcement, we align your spend with what actually matters.

 

Your Budget Deserves Better Results – Not Overhead

Comms budgets are under more scrutiny than ever. But the question isn’t how much you’re spending. It’s what you’re spending it on.

When more of your investment goes toward senior thinking, creative strategy, and trusted execution – instead of overhead – you get a comms function that actually moves the needle.

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