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.
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Maciej Mylik. Finance
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Cody Nutt
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