Growth budgets are back - see where companies are spending

- Greater focus on AI safety
- New software procurement slowing down
- Businesses are back on TikTok
- Grab the full report

We just released a new Spending Benchmarks report, revealing the latest trends we're seeing in anonymized spending data from Ramp's 15,000+ businesses in Q4.
The main takeaway? Businesses are feeling more optimistic, with customers increasing their recurring advertising and software spend for six consecutive months and transaction count rising 5% over the last quarter. Where are those dollars going? See our top trends below.
Greater focus on AI safety
Rapid experimentation with AI vendors was a recurring theme in 2023. New names consistently rotated through our fast-growing software vendor list. Perplexity, Anthropic, and Instill AI all debuted on the list in Q4.
AI software is nascent, so it’s no surprise that businesses are testing new tools. What’s noteworthy, however, is the growing interest in tools that emphasize safe and responsible AI, perhaps in reaction to recent headlines about AI hallucinations. Perplexity in particular is known for bolstering its AI answers with citations while Anthropic is a leader in AI safety research.

New software procurement slowing down
Companies that are in the same stage of their life on Ramp have fewer software vendors compared to past years, signaling that organizations are being more discerning about which tools offer the most value.
Finance teams still need to watch their budget even if they’re not actively adding new tools. Our net revenue retention data show Amazon Web Services customers more than double their median spend on the service after 18 months. Twilio is another one to watch—median spend jumps 189% between month 1 and month 18. See our full report for even more data to help you benchmark costs, including average savings from contract negotiations with top vendors.

Businesses are back on TikTok
After flatlining in recent quarters, advertising card spend is back on the rise, especially among small SMBs and mid-market companies. One standout beneficiary of the advertising boom is TikTok Ads, where spending rose in Q4 after three quarters of decline. TikTok Shop, the company’s new “shoppable video” initiative, also took a top spot on our list of fastest-growing advertising channels by customer count.
However, not all businesses are flocking back: while small SMBs significantly boosted spending with the channel, large SMBs companies decreased spending on TikTok more than any other advertising vendor. Our vendor data also show that companies that spend with TikTok Ads tend to prioritize it over other platforms in year one, but Facebook and Google overtake it in year two.

Grab the full report
Check out our full report for even more insights into how expenses are shifting by company size, sector, and vendor—and tips to keep those costs under control.

“Our previous bill pay process probably took a good 10 hours per AP batch. Now it just takes a couple of minutes between getting an invoice entered, approved, and processed.”
Jason Hershey
VP of Finance and Accounting, Hospital Association of Oregon

“When looking for a procure-to-pay solution we wanted to make everyone’s life easier. We wanted a one-click type of solution, and that’s what we’ve achieved with Ramp.”
Mandy Mobley
Finance Invoice & Expense Coordinator, Crossings Community Church

“We no longer have to comb through expense records for the whole month — having everything in one spot has been really convenient. Ramp's made things more streamlined and easy for us to stay on top of. It's been a night and day difference.”
Fahem Islam
Accounting Associate, Snapdocs

“It's great to be able to park our operating cash in the Ramp Business Account where it earns an actual return and then also pay the bills from that account to maximize float.”
Mike Rizzo
Accounting Manager, MakeStickers

“The practice managers love Ramp, it allows them to keep some agency for paying practice expenses. They like that they can instantaneously attach receipts at the time of transaction, and that they can text back-and-forth with the automated system. We've gotten a lot of good feedback from users.”
Greg Finn
Director of FP&A, Align ENTA

“The reason I've been such a super fan of Ramp is the product velocity. Not only is it incredibly beneficial to the user, it’s also something that gives me confidence in your ability to continue to pull away from other products.”
Tyler Bliha
CEO, Abode

“Switching to Ramp for Bill Pay saved us not only time but also a significant amount of money. Our previous AP automation tool cost us around $40,000 per year, and it wasn’t even working properly. Ramp is far more functional, and we’re getting the benefits at a fraction of the cost.”
Frank Byers
Controller, The Second City
