Assessment Technology Incorporated (ATI) is estimated to allocate 13.3% of its revenue to marketing and 69% to payroll expenses.
Below you will find a deep dive of my findings and methodology.
To answer your request, I researched ATI's website as well as business information profiles and articles in the industry media. I found that ATI is a private company with no publicly available data regarding internal financial information such as payroll and marketing budgets. However, I approached the problem with a triangulation method to come up with estimates of ATI's marketing and payroll budgets as percentages of its revenue. I used Glassdoor to determine ATI's estimated revenue and calculated its marketing/payroll budgets based on industry benchmarks as well as a case study for a similar company. Please continue below to see the results of my research.
Assessment Technology Incorporated (ATI) is a private online education company. ATI has no publicly available information on its financials as well as internal budgets.
However, the company has a profile on Glassdoor with the following information:
• Estimated annual revenue: $5-$10 million
• Size: 1-50 employees
Using these data we will triangulate an estimate of ATI's marketing and payroll budgets as a percentage of its revenue.
Gartner's 2016-2017 CMO Spend Survey includes a comparative chart of marketing budgets as a percentage of total revenue per industry (p.4).
I chose the High Tech industry as the best representative of ATI's category, since ATI is a technology company focused on educational materials. Other industry choices include media, CPG, manufacturing, retail, financial services, and transportation/hospitality.
According to Gartner, high technology companies allocate 13.3% of their revenue to marketing. This translates to roughly $665,000 on the low end ($5 million revenue) and $1.33 million on the high end ($10 million revenue) for ATI.
Also, according to Forbes, small businesses with less than $5 million in revenue use 7% to 8% of their revenue for marketing. Since ATI's revenue is estimated to exceed $5 million, the higher marketing budget percentage (13.3%) can be considered as a close estimate.
As to payroll, I could not determine an industry benchmark either for the high-tech or education industries as this varies widely even within the industries themselves.
I also found no industry benchmark for a company like ATI (technology) in the Bureau of Labor Statistics' resources as these types of companies are lumped either in Sales and Office or Management, Professional and Related occupations.
However, I found a company similar in size and annual revenue to ATI which also belongs to the technology industry. Inc reported that Buffer, a social media analytics and scheduling services company, is radically transparent with its finances. Buffer is based in San Francisco and is close to ATI's size and estimated revenue:
• Annual revenue: $7.8 million
• Size: 64 employees
Buffer disclosed that it allocates 69% of its revenue for its 64-strong staff's payroll. This includes employees' base pay and taxes. For Buffer, payroll expenses amount to $403,000 against its revenue of $7.8 million. Also, because it provides digital products and services, Buffer allocates 11% or $64,853 to software, hosting, and servers.
ATI also provides digital products and services to its target audience, educators. Applying Buffer's payroll percentage (69%) to ATI's revenue would yield $3.45 million on the low end ($5 million) and $6.9 million on the high end ($10 million in revenue).
To wrap it up, Assessment Technology Incorporated (ATI) is a private online education company with no publicly available information on its financials as well as internal budgets. However, Glassdoor estimates ATI's annual revenue to be $5-$10 million and company size to be 1-50 employees . Based on Gartner's research, high technology companies spend 13.3% of their revenue on marketing. This translates to roughly $665,000 on the low end ($5 million revenue) and $1.33 million on the high end ($10 million revenue) for ATI. Also, Inc's case study shows that a technology company similar to ATI's size and revenue allocates 69% of its revenue to payroll expenses including base pay and taxes.