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Business spending benchmarks
Spend data for financial services
Small SMBs
Median card & AP spend
Median card spend: Median card spend has generally remained consistent both QoQ and YoY.
Median AP spend: Unlike card spending, median AP spending for 2024 has continued to come in higher than its 2023 medians. This jump might reflect changing cash flow strategies, bulk purchasing variations, or other external economic influences.
Change in mean card spend (Q2 24 vs Q1 24)
Noteworthy outliers in card spend categories
Analyzing the change in mean card spend between Q1 2024 and Q2 2024 reveals several interesting outliers:
- Taxi/Rideshare (+21.8%) and Lodging (+21.7%): The significant rise in these categories suggests increased business travel, pointing towards an uptick in in-person meetings and events.
- General Merchandise (+14.6%) and Other (+14.5%): Higher spending indicates expanded procurement activities, potentially preparatory actions for future growth phases.
- Airlines (+12.3%): Consistent with the rise in taxi/rideshare and lodging, increased airline expenses further reflect increased business travel frequency.
Shift in spend over time
- Advertising: From Q2 23 (14.1%) to Q2 24 (13.3%), advertising spend saw fluctuations but ultimately stabilized near its original share. This suggests optimization of marketing budgets.
- SaaS/software: From Q2 23 (18.0%) to Q2 24 (19.4%), the investment in software tools increased steadily, showing the sector's reliance on digital tools for efficiency.
- Other category: Year over year decrease suggests evolving operational expenses.
Biggest expenses
Major expense highlights
Vendor-specific spending provides further insights into operational priorities:
- Google Ads: Reduced spending on Google Ads QoQ and YoY suggests strategic shifts towards different marketing channels for better cost efficiency.
- Amazon Web Services: Continued investment in AWS QoQ and YoY underscores its pivotal role in managing scalable cloud-based operations.
- Upwork: The increased spend on Upwork QoQ indicates heightened reliance on freelance and remote work models.
What businesses are purchasing for the first time
Emerging tools and platforms highlight the adoption of new technologies:
- OpenAI and Anthropic: Initial investments suggest exploratory engagement with advanced AI tools.
- Microsoft Office/Azure and LinkedIn: Transactions indicate ongoing investments in productivity and professional networking tools.
Comparing Q2 to Q1
Airline travel seemingly cooling:
Q1 24: United Airlines $3,765 (+39.4% QoQ), Delta $3,091 (+38.7% QoQ)
Q2 24: Delta $3,279 (+6.3% QoQ), United $3,643 (-5.2% QoQ)
Continued pullback on Google Ads:
Q1 24: $17,541 (-6.2% QoQ, -21.6% YoY)
Q2 24: $11,773 (-14.2% QoQ, -55.0% YoY)
Takeaways for small SMBs in the financial sector
- Increased business travel: Significant rises in taxi/rideshare and lodging, coupled with increased airline expenses, point to a return to in-person engagements.
- Optimized marketing: Advertising spend shows stability with subtle optimizations, reflecting refined marketing strategies.
- Investment in technology: Consistent growth in SaaS/software and cloud-related spends underlines the sector's focus on digital transformation.
- Diverse and evolving operational expenses: Steadier 'Other' category spend reflects varied business needs.
- Adoption of emerging tools: New vendor investments highlight an openness to experimenting with innovative technologies for operational efficiency.
Large SMBs
Median card & AP spend
Both median card and AP spend have shown minor fluctuations, with card spend peaking in Q4 23 and slightly decreasing by Q2 24. Meanwhile, AP spend saw slight increases since Q4 23, potentially reflecting bigger procurement cycles and bulk purchasing.
Change in mean card spend (Q2 24 vs Q1 24)
Noteworthy outliers in card spend categories
Analyzing the change in mean card spend between Q1 2024 and Q2 2024 reveals several interesting outliers:
- Cloud computing (+22.8%): Significant rise indicating increased investment in digital infrastructure.
- Advertising (+14.2%): Enhanced marketing efforts likely reflecting aggressive growth or brand-building strategies.
- Electronics (+13.9%): Suggests ongoing investment in upgrading or adding technology hardware.
- Airlines (+12.9%): Increased business travel reflects a return to in-person engagements.
- Professional Services (-6.3%): Reduced investment possibly indicates a shift towards utilizing in-house capabilities or a seasonal reduction due to tax season occurring in Q1.
Shift in spend over time
One notable outlier was the share of cloud computing moving from 5.1% of total spend in Q2 23 to 8.2% in Q2 24, indicating ongoing investment in cloud services for scalability and efficiency
Biggest expenses
Major expense highlights
Vendor-specific spending provides deeper insights into operational priorities:
- Facebook Ads spend: Substantial increase indicating a strong focus on social media marketing, potentially replacing spend on Google Ads, which was down 46.2% YoY.
What businesses are purchasing for the first time
Large financial services SMBs have a mix of both emerging and legacy software:
- Squarespace and Canva: Reflect an emphasis on digital presence and design.
- OpenAI and Anthropic: Indicate exploratory engagement with AI technologies for innovation.
- Microsoft Office/Azure and LinkedIn: Suggest sustained investment in productivity and networking tools.
Comparing Q2 to Q1
- Shift in cloud computing investment: Cloud computing saw a dramatic increase in Q2 24 (+22.8%) compared to a modest increase in Q1 24 (+3.0%).
- Reduced declines in Q2: Categories such as electronics and general merchandise shifted from notable declines in Q1 to increases in Q2.
- Sustained high airline and advertising spend: Dissimilar to small SMBs, both categories saw significant spending increases in successive quarters, highlighting consistent travel and marketing activities.
- Google Ads: Similar to small SMBs, large SMBs continued to make some cutbacks in advertising budgets relative to 2023.
Takeaways for large SMBs in financial services
The spend patterns observed from Q2 2023 to Q2 2024 some key takeaways for large financial services SMBs are:
- Steady card spend increase: Points to increased adoption of digital payment methods, reflecting modernization and operational agility.
- Generally rising AP spend: Highlights potential bulk procurement strategies, varying operational scales, or macroeconomic impacts on financial liquidity.
- Technology and office investments: Elevated spend in electronics and office categories signals a dual focus on technological enhancement and physical office optimization.
- Persistent advertising importance: Despite a decline, the high proportional spend on advertising underlines continued efforts in maintaining market visibility.
- New vendor experimentation: Early investments in AI and digital transaction tools suggest forward-looking strategies to stay competitive and improve efficiency.
Spend data for healthcare and biotech companies
Compared to other industries:
- Higher professional services spend and regulatory compliance costs differentiate this sector from tech and nonprofit segments.
- Significant fluctuations in AP spend, reflecting bulk procurement cycles tied to fiscal periods and regulatory requirements.
Small SMBs
Median card & AP spend
Median card spend: The median card spend in this sector has shown an upward trajectory from Q2 2023 to Q2 2024. This increase suggests growing operational expenditures and possibly greater reliance on card transactions for ease of financial management.
Median AP spend: The median AP spend exhibits more fluctuation, rising from $103,303 in Q2 2023 to $127,004 in Q2 2024, peaking in Q2 2024. This variability could reflect changing operational needs, bulk procurement cycles, or other strategic financial decisions.
Change in mean card spend (Q2 24 vs Q1 24)
Noteworthy outliers in card spend categories
Analyzing the change in mean card spend between Q1 2024 and Q2 2024 reveals several interesting outliers:
- General Merchandise (+23.0%): A significant rise in this category could be due to bulk purchasing of supplies, possibly medical or lab-related equipment crucial for operations.
- Lodging (+20.4%): This increase indicates potential growth in business travel for conferences, partnerships, and client meetings, highlighting industry mobility despite global economic conditions.
- Restaurants (+13.7%): Enhanced spending on dining might correlate with more in-person networking, client meetings, and business travel hospitality.
- Advertising (-35.7%): A drastic reduction in advertising spend suggests a strategic shift towards more organic or word-of-mouth marketing channels, or reallocating funds to more immediate operational needs.
Shift in spend over time
Tracking the spending from Q2 2023 to Q2 2024 across various categories offers insight into spending priorities:
- Advertising: Volatility may indicate timed campaign strategies targeting specific markets or seasonal industry trends.
- General merchandise: The proportion of spend in this category fluctuates, showing a sharp decrease in to 14.9% in Q4 23 increasing to 22.20% in Q2 2024, emphasizing investment in essential goods, perhaps for scaling operations or complying with updated regulations.
- Other: This category consistently remains significant, climbing to 22.50% in Q2 2024, possibly encompassing miscellaneous or emerging expenses unique to the dynamic nature of healthcare and biotech fields.
Biggest expenses
Major expense highlights
- Facebook Ads (+28.5% YoY): Reflects continued investment in digital advertising for brand visibility and customer engagement, albeit with a significant QoQ reduction indicating possible campaign pauses or optimizations.
- Amazon Web Services (+48.2% YoY): Significant increase underscores the importance of cloud services for scalable, efficient data management and computational needs.
- FedEx (+29.9% QoQ): Elevated spend on shipping indicates rising logistical needs, possibly for medical supplies, equipment delivery, or expedited sample handling.
- Airline spend: Both Delta Air Lines (+1.0% QoQ) and United Airlines (+13.7% QoQ) expenses show that average airline spend has slowed its growth relative to Q4 23 to Q1 2024, but remains high.
What businesses are purchasing for the first time
New vendor purchases
- OpenAI and Anthropic: The introduction of these AI vendors, even with modest spends of $115 and $55 respectively, signals early adoption of AI tools for research, process automation, or data analysis.
- DocuSign: A relatively higher average spend highlights the shift towards digital signatures and secure document management, vital for maintaining compliance in a regulated industry.
Comparing Q2 to Q1
Facebook Ads:
Q1 24: $57,521 (+22.2% QoQ, +103.9% YoY)
Q2 24: $22,405 (-44.1% QoQ, +28.5% YoY)
Insight: Sharp decline from Q1 to Q2 suggests reallocated marketing budgets or optimized ad spend.
Continued increases in general merchandise spending: A significant increase in general merchandise spending was observed in Q2 24 (+23.0%), compared to a +14.0% increase in Q1 24, indicating a focus on necessary supplies and equipment.
Takeaways for small SMBs in healthcare and biotech
The spend patterns for small SMBs in the healthcare and biotech sectors from Q2 2023 to Q2 2024 paint a vivid picture of evolving strategies and adaptive measures. Key takeaways include:
- Consistent card spend growth: Increased card transactions indicate greater reliance on flexible, trackable spending methods, possibly reflecting operational growth.
- Fluctuating but rising AP spend: Highlights complex procurement cycles and liquidity management, critical for operational sustainability.
- Significant increases in general merchandise and lodging: Points to scaling operations and increased physical mobility, essential for business growth and client engagement.
- Reduction in advertising: Suggests a reallocation of funds toward immediate operational needs or a strategic shift in marketing approaches.
- Adoption of AI and digital tools: Reflects forward-looking strategies to enhance operational efficiency, data analysis, and compliance management.
Large SMBs
Median card & AP spend
Median card spend: From Q2 2023 to Q2 2024, median card spend increased from $106,595 to $115,988. This steady rise suggests incremental growth in operational expenses and perhaps an increased reliance on card transactions for greater financial flexibility and monitoring.
Median AP spend: The median AP spend saw significant fluctuations, peaking at $236,993 in Q3 2023 and rising again to $214,533 in Q2 2024. These fluctuations might reflect strategic bulk procurement and variability in payment cycles specific to the industry's needs.
Change in mean card spend (Q2 24 vs Q1 24)
Noteworthy outliers in card spend categories
Analyzing the change in mean card spend from Q1 2024 to Q2 2024 reveals several interesting outliers:
- General merchandise (+17.7%): A notable increase, pointing to bulk purchasing of essential supplies and equipment critical for operations.
- Advertising (+11.7%): Growth in advertising spend indicates a robust focus on marketing campaigns, essential for promoting services in a competitive industry.
- Office (+10.1%): This increase could reflect returning to physical office workspaces, revamping office infrastructure, or equipping employees.
- Airlines (-11.7%): While large SMBs in other industries saw flat or slight increases in QoQ mean spend, the reduction for large SMBs in healthcare suggests less travel, shorter routes, or better price shopping.
Shift in spend over time
Tracking the spending from Q2 2023 to Q2 2024 across various categories offers insight into spending priorities:
- Advertising: The proportion of spend on advertising increased significantly from 19.6% in Q2 2023 to 25.4% in Q2 2024. This upward trend underscores consistent investment in marketing to maintain competitive positioning and visibility.
- General merchandise: Spending in this category grew from 16.7% in Q2 2023 to 19.9% in Q2 2024, signifying continuous investment in supplies and goods crucial for business operations.
- Airlines: Spending on airlines dropped from 3.2% in Q2 2023 to 2.1% in Q2 2024, revealing a downward trend in business travel, potentially replaced by virtual interactions.
- Other: Constituting a significant portion of spend at 20.5% in Q2 2024, it indicates miscellaneous categories that are significant but dispersed across various smaller expenses.
Biggest expenses
Major expense highlights
- Facebook Ads (+39.2% QoQ): The substantial increase in card spend on Facebook Ads shows an intensified focus on social media marketing to engage audiences.
- Henry Schein: (+4.3% QoQ): While only a slight QoQ increase, the large mean spend ($26,820) is unique to the healthcare industry and highlights the importance of sound procurement practices for medical supplies and equipment.
- Google Ads (-7.7% QoQ): While there's a slight QoQ decline, the annual growth of 24.1% indicates continued strong reliance on search engine marketing.
- Apple (+48.9% QoQ): Considerable growth highlights investments in technology and devices, indicating either operational upgrades or employee equipment enhancement.
- Amazon Web Services (-6.4% QoQ): Slight decline, but an annual increase of 18.4% showcases investing in scalable cloud services essential for data management and operational efficiency.
What businesses are purchasing for the first time
New vendor purchases
- AI integration: The introduction of vendors like OpenAI reflects an early adoption of artificial intelligence tools for improving research, operational efficiency, and data management.
- Docusign: The amount of $1,450 on Docusign demonstrates an emphasis on digital transaction management, necessary for maintaining compliance and operational efficiency in a regulated industry.
- Adobe and Canva: Continued spends reflect ongoing investment in creative and design tools, critical for marketing and promotional activities.
Comparing Q2 to Q1
Facebook Ads: Large SMBs did not see the QoQ decline like small SMBs.
- Q1 24: $50,424 (+18.8% QoQ, +96.4% YoY)
- Q2 24: $48,535 (+39.2% QoQ, +63.4% YoY)
Takeaways for large SMBs in healthcare and biotech
The financial trends for large SMBs in the healthcare and biotech sectors from Q2 2023 to Q2 2024 reveal strategic spending patterns and adaptability in response to industry needs. Key takeaways include:
- Steady increase in card spend: Growing reliance on card transactions, likely for ease of financial monitoring and operational flexibility.
- Fluctuations in AP spend: Strategic bulk procurements and payment cycles reflecting operational scalability and liquidity management.
- Significant increases in advertising and general merchandise: Prioritizing marketing and essential supplies to maintain competitive edge and operational efficiency.
- Reduced travel expenses: Decreased spending on airlines indicates a shift towards virtual engagement, possibly due to changing business norms post-pandemic.
- Adoption of AI and digital tools: Investments in AI and document management tools reflect forward-looking strategies to enhance operational efficiency and compliance.
Spend data for manufacturing companies
Small SMBs
Median card & AP spend
Median card spend: Over the span from Q2 2023 to Q2 2024, median card spend saw fluctuations, starting at $56,517, peaking at $65,994 in Q4 2023, and settling at $54,218 in Q2 2024. The variation reflects dynamic operational expenses possibly driven by project cycles and procurement needs.
Median AP spend: The median AP spend similarly fluctuated, experiencing a significant increase from Q2 2023 ($102,375) to Q2 2024 ($162,816). This increase suggests a ramp-up in bulk purchasing or contracting activities, reflecting growing operational scales.
Change in mean card spend (Q2 24 vs Q1 24)
Noteworthy outliers in card spend categories
Analyzing the change in mean card spend between Q1 2024 and Q2 2024:
- Advertising (+20.2%): The significant increase suggests heightened efforts in marketing and brand visibility, essential for competitive positioning.
- Office (+18.1%): Reflecting a return to physical workspaces, office renovations, or equipping employees with necessary supplies and technology.
- SaaS/software (-14.3%): The decline could indicate a consolidation of software subscriptions or cost optimization measures.
- General merchandise (-10.2%): Reduction in spend might reflect a completion of bulk procurement cycles or improved inventory management.
Shift in spend over time
Examining spend from Q2 2023 to Q2 2024 across various categories provides a comprehensive understanding of operational priorities:
- Advertising: The increase from 3.6% of total spend in Q2 2023 to 5.6% in Q2 2024 indicates continuous investment in marketing coupled with changing market conditions.
- Fuel/gas: Increasing from 2.5% in Q2 2023 to 3.0% in Q2 2024, this spending growth suggests rising logistical and transportation needs.
Biggest expenses
Major expense highlights
- Google Ads: The substantial increase in mean card spend indicates a stronger focus on digital advertising for better market outreach and lead generation.
- Apple: Significant rise may indicate tech upgrades or increased provisioning of devices for employees, supporting operational efficiency.
- Airbnb: Growth suggests reliance on flexible accommodation solutions for business travel, indicative of project-based relocations or temporary site operations.
- Uline: Uline was unique to the manufacturing sector. The slight decrease implies optimized procurement or existing inventory management efforts.
What businesses are purchasing for the first time
New vendor purchases
- GoDaddy, Squarespace, Adobe, and Canva: These purchases suggest a focus on establishing and enhancing online presence through website creation, marketing materials, brand aesthetics, digital content creation, and domain management.
- OpenAI: Small but investment in AI indicates exploratory engagement seen in other industries in early 2023.
- Amazon Business Prime: Adoption of Business Prime indicates a push towards optimizing procurement processes and benefiting from bulk purchasing advantages.
Takeaways for small SMBs in manufacturing
The financial patterns from Q2 2023 to Q2 2024 for small SMBs in manufacturing illustrate adaptive strategies and nuanced operational decisions. Key takeaways include:
- Dynamic card spend: Fluctuations in card spend reflect varying operational expenses, likely tied to specific projects and procurement needs.
- Increasing AP spend: Suggests augmented bulk purchasing and contracting activities, fundamental for scaling operations.
- Notable advertising and office spend growth: Emphasizes the importance of marketing efforts and physical workspace optimization within SMB operations.
- Decrease in software spend: Indicates potential software subscription optimizations or strategic cost-cutting measures.
- High airline and travel misc spend: Points to significant mobility needs for business operations, essential for project-based travel and client interactions.
Large SMBs
Median card spend
The median card spend fluctuated from $117,320 in Q2 2023 to $105,039 in Q2 2024. The peak was observed in Q3 2023 at $120,796, followed by a notable dip in Q2 2024, suggesting potential seasonal spending or project completions.
Change in mean card spend (Q2 24 vs Q1 24)
Noteworthy outliers in card spend categories
Analyzing the change in mean card spend between Q1 2024 and Q2 2024 reveals several interesting outliers:
- Advertising: Could indicate heightened marketing efforts, possibly for brand building or product launches.
- Government services: This increase may reflect compliance-related expenses, grants, or public sector collaborations.
- Fuel/gas: Potentially tied to increased transportation needs or rising fuel costs.
- Office: Increased spending on office supplies or infrastructure improvements signals a return to or augmentation of physical workplaces.
- Restaurants: Decline in restaurant spending perhaps reflects tighter budget controls or a reduction in business-related dining.
Shift in spend over time
Examining the spend from Q2 2023 to Q2 2024 across various categories provides insights into evolving operational priorities:
- Advertising: Increased from 7.5% of total spend in Q2 2023 to 8.3% in Q2 2024, highlighting the growing importance of marketing and advertising.
- Airlines: Fluctuating but generally stable, from 3.4% in Q2 2023 to 3.6% in Q2 2024, reflecting consistent but cautious reliance on business travel.
- SaaS/software: Spiking from 5.6% in Q2 2023 to 6.6% in Q2 2024, illustrates enhanced dependence on technology solutions for operational efficiency.
Biggest expenses
Major expense highlights
- Facebook Ads: A significant quarterly increase despite a substantial annual decline of -53.4%, indicating fluctuating advertising strategies.
- Google Ads: Consistent growth in spend, pointing to ongoing investment in digital marketing for visibility and lead generation.
- The Home Depot: Growth suggests increased spending on materials and supplies, crucial for manufacturing operations.
- McMaster-Carr: McMaster-Carr was unique to large SMBs in manufacturing in appearing in the top expenses.
- Airbnb: Increase indicates reliance on flexible accommodation options for business travel, possibly for project-based work or remote site operations
What businesses are purchasing for the first time
New vendor purchases
- AI integration: The introduction of vendors like OpenAI reflects an early adoption of artificial intelligence tools for improving research, operational efficiency, and data management.
- Docusign: The amount of $1,450 on Docusign demonstrates an emphasis on digital transaction management, necessary for maintaining compliance and operational efficiency in a regulated industry.
- Adobe and Canva: Continued spends reflect ongoing investment in creative and design tools, critical for marketing and promotional activities.
Comparing Q2 to Q1
- Facebook Ads: Large SMBs did not see the QoQ decline like small SMBs.
- Q1 24: $50,424 (+18.8% QoQ, +96.4% YoY)
- Q2 24: $48,535 (+39.2% QoQ, +63.4% YoY)
Takeaways for large SMBs in manufacturing
Key takeaways from the spend patterns for large SMBs in the manufacturing sector from Q2 2023 to Q2 2024 include:
- Fluctuating card spend: Reflects dynamic operational demands and strategic financial management, possibly tied to project cycles and seasonal variations.
- Significant advertising spend increase: Highlights the critical role of marketing in maintaining competitive positioning and driving growth.
- Increased fuel/gas and office spend: Indicates rising transportation needs and a possible return to or enhancement of physical office spaces.
- Enhanced digital marketing and technology investment: Consistent growth in Google Ads and SaaS/Software spend points to a strong focus on digital initiatives and operational efficiency.
- Emergence of AI and specialized software: Investments in AI and software like Autodesk suggest a forward-looking approach to innovation and process optimization.
Spend data for professional services
Small SMBs
Median card & AP spend
Median card spend: The median card spend has shown a steady increase from $27,969 in Q2 2023 to $31,750 in Q2 2024, reflecting growing operational expenses and likely increased reliance on card transactions for business operations.
Median AP spend: The median AP spend has seen significant variability, rising from $69,420 in Q2 2023 to $103,362 in Q2 2024, indicating fluctuating payment cycles and bulk procurement activities typical of professional services.
Change in mean card spend (Q2 24 vs Q1 24)
Noteworthy outliers in card spend categories
Analyzing the change in mean card spend between Q1 2024 and Q2 2024 reveals several interesting outliers:
- Electronics: Significant increase, possibly due to technology upgrades or increased investment in new hardware.
- SaaS/software: Reflects a strong pivot towards digital tools and services to enhance operational efficiency and productivity.
- Advertising: The reduction indicates a possible strategic shift towards more organic marketing or cost-saving measures in marketing spend.
- Lodging: Sharp decline suggests a reduction in business travel or a shift towards lower-cost accommodation arrangements.
Shift in spend over time
Examining the spend from Q2 2023 to Q2 2024 across various categories provides a comprehensive understanding of operational priorities:
- Advertising: The proportion of spend on advertising decreased significantly from 19.1% in Q2 2023 to 7.1% in Q2 2024, indicating cost management or a strategic shift in marketing approaches.
- SaaS/software: Increased from 11.4% in Q2 2023 to 17.1% in Q2 2024, reflecting a strong reliance on software solutions to drive efficiency and innovation.
- Other: Rising steadily to 25.8% in Q2 2024, indicating a broad spectrum of miscellaneous or evolving essential expenses.
- Cloud computing: Growth from 2.4% in Q2 2023 to 4.3% in Q2 2024 highlights the growing importance of cloud services for scalable and secure operations.
Biggest expenses
Major expense highlights
- Facebook Ads: Despite an annual decline of -88.8%, the QoQ increase shows a revival of advertising efforts on the platform.
- Google Ads: Marked decline indicates potential budget constraints or strategic withdrawal from paid search campaigns.
- Amazon Web Services: Consistent spend increase reflects the critical role of cloud services in sustaining business operations.
- Delta Air Lines: A continued increase after large gains from Q4 2023 to Q1 2024
What businesses are purchasing for the first time
New vendor purchases
- OpenAI: Small initial spend highlights interest in leveraging AI tools for enhancing business processes and client services.
- Docusign: Demonstrates an emphasis on secure and efficient digital transaction management.
- Calendly & Zoom: Investments in scheduling and meeting tools reflect a focus on optimizing remote work and client interactions.
Comparing Q2 to Q1
- Increase in electronics and SaaS/software: Electronics saw a significant increase in spending in Q2 24 (+45.3%), whereas SaaS/software spending rose by +20.7%, indicating higher investment in tech infrastructure and digital tools.
- Shift from lodging: A massive decrease in lodging spend (-24.0%) in Q2 compared to the high spending in Q1 24 (+42.6%) suggests a reduction in business travel or shift to virtual engagements.
- Consistent advertising decrease: Advertising continued to decline, with a slight recovery but still negative trend (-24.7% in Q1 vs. -16.4% in Q2), indicating shifting marketing strategies.
Takeaways for small SMBs in professional services
The spend patterns from Q2 2023 to Q2 2024 for small SMBs in the professional services sector reveal several key trends:
- Increasing card spend: Indicates higher operational expenses and a preference for card transactions for flexibility and tracking.
- Variable AP spend: Reflects changing bulk procurement cycles and payment strategies, essential for financial management.
- Significant increase in SaaS/software: Highlights strong investment in digital tools to enhance productivity and service delivery.
- Declining advertising spend: Suggests strategic cost management or a shift to organic marketing efforts.
- Adoption of AI and cloud services: Early investments in AI and a reliance on cloud services signal forward-looking strategies for innovation and scalability.
Large SMBs
Median card spend
Median card spend: The median card spend for large SMB professional services companies has shown steady growth from $77,523 in Q2 2023 to $82,244 in Q2 2024. This increase indicates rising operational expenses and a growing reliance on card transactions for financial flexibility and monitoring.
Median AP spend: The median AP spend also saw growth, increasing from $136,149 in Q2 2023 to $156,611 in Q2 2024. This rise suggests more significant bulk purchasing or contracting, reflecting the complex operational demands typical in professional services.
Change in mean card spend (Q2 24 vs Q1 24)
Noteworthy outliers in card spend categories
Analyzing the change in mean card spend between Q1 2024 and Q2 2024 highlights several interesting outliers:
- Advertising: Unlike small SMBs (-16.4%), large SMBs saw a significant increase in QoQ average advertising spend.
- Restaurants: Increased spending on dining could be driven by client entertainment or internal business meetings, emphasizing the importance of in-person interactions.
- Electronics: Reflects investment in technology upgrades.
- Professional services: The decline suggests a possible optimization of external consultancy and professional fees, potentially due to internal capability enhancements or cost-cutting measures.
Shift in spend over time
Examining the spend from Q2 2023 to Q2 2024 across various categories provides insights into shifting operational priorities:
- Advertising: Although there was a QoQ increase, advertising as a share of spend has not returned to it’s peak of 14.7% in Q2 2023.
- Cloud computing: Growth from 4.1% in Q2 2023 to 5.2% in Q2 2024 underscores the continuing importance of cloud services for scalable and secure operations.
- Restaurants and lodging: Increases in both categories signify a return to business travel and in-person meetings, essential for client relations and networking.
Biggest expenses
Major expense highlights
- Google Ads: The quarterly increase suggests a renewed focus on digital marketing for lead generation, despite -57.8% YoY decline indicating budget recalibrations.
- Facebook Ads: The quarterly increase reflects intensified social media advertising efforts, albeit with significant YoY reduction of -46.8%, pointing to fluctuating marketing strategies.
- Amazon Web Services: Consistent growth demonstrates the critical role of cloud services in sustaining and scaling business operations.
- Apple: Significant quarterly increase indicates major tech upgrades, essential for operational efficiency and keeping up with technological advancements.
What businesses are purchasing for the first time
New vendor purchases
- Zoom: High spend ($924) compared to other industries reflects the importance of remote consultations, client meetings, and team collaborations.
- Microsoft Office/Azure: Spend spend ($599) compared to other industries highlights the need for productivity and cloud solutions to support remote work and collaboration. In addition, shows a potential preference for Microsoft products over other options.
- Docusign: High spend ($1,137) underscores the importance of secure digital transaction management for contracts and agreements.
Comparing Q2 to Q1
- Advertising surge: Unlike small SMBs, both quarters saw significant increases in advertising spend, with Q1 increasing by +29.4% and Q2 by +42.6%. This highlights intensified marketing efforts.
- Increase in restaurant and office spend: Restaurants and office expenses saw notable increases in Q2 24 (+18.6% and +12.1%, respectively), indicating higher spending on in-person engagements and office infrastructure.
Takeaways for large SMBs in professional services
The spend patterns from Q2 2023 to Q2 2024 for large SMBs in the professional services sector provide several key insights:
- Steady increase in card spend: Growing reliance on card transactions reflects higher operational expenses and the need for flexible financial management.
- Rising AP spend: Suggests significant bulk procurement and contracting activities, essential for operational scalability and efficiency.
- Surge in advertising and SaaS/software spend: Highlights the critical role of marketing and digital solutions in maintaining competitiveness and driving innovation.
- Decreased professional services spend: Indicates strategic cost management and possible internal capability enhancements.
Spend data for nonprofits
Small SMBs
Median card & AP spend
Median card spend: The median card spend increased steadily from $36,604 in Q2 2023 to $43,833 in Q2 2024, indicating a rise in operational expenses and possibly an increased reliance on card transactions for better financial management and flexibility.
Median AP spend: The median AP spend fluctuated significantly, starting at $46,220 in Q2 2023 and rising to $69,403 in Q2 2024. The peak was observed in Q4 2023 at $82,537, reflecting bulk procurement or seasonal spending cycles.
Change in mean card spend (Q2 24 vs Q1 24)
Noteworthy outliers in card spend categories
Analyzing the change in mean card spend between Q1 2024 and Q2 2024 reveals several interesting outliers:
- Lodging: A significant increase suggests growth in business travel for conferences, events, and stakeholder meetings. Relative to other industries, nonprofits had greater spend fluctuations in lodging and travel, suggesting seasonal fundraising events and operational variability.
- Other: Increase in miscellaneous expenses could be indicative of evolving operational needs and unforeseen expenses.
- Charitable donations: Although a QoQ decline, nonprofits still had higher proportionate spending on charitable donations and mission-related activities, distinct from for-profit entities.
Shift in spend over time
Examining the spend from Q2 2023 to Q2 2024 across various categories provides a comprehensive understanding of operational priorities:
- Advertising: Remained relatively low, compared to other industries, from 1.3% in Q2 2023 to 1.4% in Q2 2024.
- Lodging: Increased spend on lodging from 7.9% in Q1 2024 to 10.0% in Q2 2024 highlights more frequent business travel, emphasizing stakeholder engagement and mission outreach.
- Other: Consistently high, at 27.0% in Q2 2024, indicating a diverse range of operational expenses that are critical yet varied.
Biggest expenses
Major expense highlights
- Facebook Ads: While there was a quarterly decline, the annual increase of 25.6% emphasizes the continued importance of digital marketing in reaching potential donors and stakeholders.
- Amazon: Consistent growth reflects ongoing procurement of office and operational supplies, critical for day-to-day activities.
- Apple: Significant rise suggests technology upgrades or increased provisioning of devices, essential for maintaining productivity.
- Airbnb: Steady spend increase points to reliance on flexible accommodation for business travel, indicating a strategic preference over traditional hotels.
What businesses are purchasing for the first time
New vendor purchases
- Zoom: Small initial spend highlights the ongoing need for remote communication tools in a post-pandemic world.
- TechSoup: Indicates investment in software solutions tailored for nonprofits, reflecting a focus on leveraging technology for efficiency.
- Canva & Adobe: Continued spend on creative tools for marketing and content creation, essential for outreach and stakeholder engagement.
Takeaways for small SMBs in the nonprofit sector
The spend patterns from Q2 2023 to Q2 2024 for small SMBs in the nonprofit sector reveal several key trends:
- Increasing card spend: Reflects growing operational expenses and a higher reliance on card transactions for flexible financial management.
- Variable AP spend: Suggests changing procurement cycles and bulk purchasing, essential for budget management.
- Significant increase in lodging and miscellaneous expenses: Highlights the importance of business travel and evolving operational requirements.
- Consistent investment in technology: Emphasizes the role of digital tools and software in enhancing productivity and outreach efforts.
- Emerging digital marketing strategies: Continued investment in digital marketing tools like Facebook Ads, despite modest declines, underlines their importance in nonprofit awareness campaigns.
Large SMBs
Median card spend
The median card spend has shown a steady increase from $59,034 in Q2 2023 to $74,612 in Q2 2024. This consistent rise indicates growing operational expenses and an increased reliance on card transactions for financial flexibility and better expense management.
Change in mean card spend (Q2 24 vs Q1 24)
Noteworthy outliers in card spend categories
Analyzing the change in mean card spend from Q1 2024 to Q2 2024 reveals several interesting outliers:
- Lodging: Significant increase suggests more business travel for conferences, events, and stakeholder engagement.
- Charitable donations: Reflects a higher allocation towards direct mission-driven activities and donations.
- Airlines: Increase points to a rise in business travel related to organizational outreach and administrative requirements.
Shift in spend over time
Tracking the category spend from Q2 2023 to Q2 2024 highlights strategic shifts and evolving priorities:
- Advertising: The proportion of spend on advertising fluctuates, peaking at 14.7% in Q2 2023 before dropping to 10.9% in Q2 2024, suggesting a careful recalibration of marketing efforts.
- Lodging: Increased spend on lodging from 7.1% in Q2 2023 to 8.6% in Q2 2024 underscores the importance of in-person engagement and networking in the nonprofit sector.
- Charitable donations: The rise from 1.8% in Q2 2023 to 4.3% in Q2 2024 indicates a greater focus on direct mission-related expenditures.
Other: Consistently high, accounting for 24.9% in Q2 2024, suggesting diverse operational costs that are integral to daily functioning.
Biggest expenses
Major expense highlights
- Nonprofit-specific expenses: Vendors like Sam’s Club and B&H photo only appeared for this industry and company size segment.
- Amazon: Consistently increasing spend reflects significant procurement of supplies and operational goods, essential for nonprofit operations.
- American Airlines: A substantial rise, suggesting increased frequency of business travel needs.
- Apple: Significant rise indicates technology upgrades and higher provisioning of devices to improve efficiency and productivity.
- Google Ads: Decline in spend portrays cost control or strategic reduction in digital ad spend.
What businesses are purchasing for the first time
New vendor purchases
- Canva: Initial small spend highlights the emphasis on creative tools for marketing and communication.
- Grammarly: Spending here underscores the need for effective content creation and error-free communications.
- OpenAI: Reflects emerging interest in leveraging AI capabilities to enhance operational efficiency or generate insights.
Takeaways for large SMBs in the nonprofit sector
The spend patterns from Q2 2023 to Q2 2024 for large SMBs in the nonprofit sector shed light on their strategic financial management and evolving priorities. Key takeaways include:
- Consistent increase in card spend: Denotes growing operational expenses and a strong reliance on card transactions for better financial management.
- Significant lodging and charitable donation spends: Highlights the importance of business travel and direct mission-related activities in this sector.
- Emerging technology and creative tools: Investments in technology (Apple, Canva) and AI (OpenAI) points towards a future-focused strategy.
- Declining advertising spend: Although the category sees fluctuating proportions, the reduction suggests strategic reallocations or optimizations in marketing.
- Diverse operational costs: High and stable spend in the 'Other' category points to a broad range of small yet crucial operational expenses.
Spend data for tech companies
Small SMBs
Median card & AP spend
Median card spend: The median card spend showed a consistent upward trend, rising from $32,084 in Q2 2023 to $38,316 in Q2 2024. This increase indicates growing operational expenses and a likely increased reliance on card transactions for better financial flexibility and management.
Median AP spend: The median AP spend also saw a significant rise, starting at $58,272 in Q2 2023 and reaching $94,548 in Q2 2024. This sharp increase reflects bulk procurement strategies and larger purchasing cycles typical in the tech industry.
Change in mean card spend (Q2 24 vs Q1 24)
Noteworthy outliers in card spend categories
Analyzing the change in mean card spend between Q1 2024 and Q2 2024 reveals several interesting outliers:
- Lodging (+24.1%): A significant increase, likely due to increased business travel as tech companies expand their market reach and engage in more in-person meetings and conferences.
- Electronics (+12.4%): Reflects higher investment in hardware, possibly for expanding infrastructure or upgrading existing systems.
- SaaS/software (+11.0%): Continued investment in software solutions for productivity, collaboration, and scalability.
- Advertising (-4.7%): A decline suggests a strategic shift towards more cost-effective or organic marketing approaches.
Shift in spend over time
Examining the spend from Q2 2023 to Q2 2024 across various categories provides comprehensive insights into operational priorities:
- Advertising: Despite a slight decline in the most recent quarter, advertising consistently remains a significant expense, reflecting the ongoing need for brand visibility and lead generation.
- Cloud computing: The slight decrease from 11.3% in Q2 2023 to 10.3% in Q2 2024 suggests optimization in cloud costs or consolidated services as companies mature.
- SaaS/software: The proportion of spend on SaaS has remained relatively steady, highlighting its essential role in operational efficiency and agility.
- Lodging: An increase from 4.8% in Q2 2023 to 4.2% in Q2 2024 underscores the renewed importance of travel for business expansion and partnerships.
Biggest expenses
Major expense highlights
- Facebook Ads: Despite a quarterly decline, the annual increase showcases the platform's effectiveness in reaching target audiences.
- Google Ads: Consistent investment in paid search campaigns underlines their importance in driving traffic and leads.
- Apple: Significant rise suggests tech upgrades or increased provisioning of devices to employees.
- Upwork: Reflects a growing reliance on freelance and remote work models, optimizing cost and project-based needs.
What businesses are purchasing for the first time
New vendor purchases
- OpenAI and Anthropic: Emerging investments in these AI vendors indicate early adoption of AI tools for enhancing business processes and decision-making.
- Squarespace and Canva: Small spends on these tools reflect ongoing priorities in building and maintaining a strong digital presence.
- Microsoft Office/Azure: Continued investment in productivity and cloud solutions essential for business efficiency.
Comparing Q2 to Q1
Lodging replaced airlines as the largest growth in median card spend category.
Q1 24:
- Airlines: +25.6%
- Advertising: +22.7%
- Insurance: +20.9%
- Electronics: +15.8%
- SaaS/software: +10.7%
- Cloud computing: -2.3%
Q2 24:
- Lodging: +24.1%
- Electronics: +12.4%
- SaaS/software: +11.0%
- General merchandise: +9.4%
- Cloud computing: -0.1%
- Advertising: -4.7%
While advertising spend continues to decline quarter over quarter, small SMBs in the technology sector were among the only that increased YoY spend on Google Ads for both quarters:
Google Ads: Significant increase in Q1 followed by a decrease in Q2, indicating optimization after a period of higher spending.
- Q1 24: $26,959 (+32.1% QoQ, +65.0% YoY)
- Q2 24: $24,229 (-9.6% QoQ, +39.0% YoY)
Takeaways for small SMBs in tech companies
The spend patterns for small SMBs in the tech sector from Q2 2023 to Q2 2024 reveal several key trends:
- Consistent increase in card and AP spend: Reflects growing operational expenses and higher reliance on flexible financial management strategies.
- Significant increase in lodging and electronics: Highlights the importance of business travel for expansion and the need for ongoing tech upgrades.
- Strategic advertising adjustments: Indicates a recalibration towards more cost-effective marketing channels amidst the rapidly evolving digital landscape.
- Dependence on SaaS/software: Emphasizes the critical role that software solutions play in driving operational efficiency and scalability.
- Emergence of AI and creative tools: Investments in AI and design tools like Canva indicate forward-looking strategies to enhance operations and market presence.
Large SMBs
Compared to other large SMBs, those in tech saw:
- Significant investment in electronics and cloud computing infrastructure, reflecting a strong focus on technological enhancements and operational scalability.
- A notable decline in advertising spend in recent quarters, possibly indicating a shift towards more optimized or organic growth strategies.
Median card spend
Median card spend: The median card spend increased steadily from $117,264 in Q2 2023 to $128,942 in Q2 2024. This consistent rise indicates growing operational expenses and a higher reliance on card transactions for financial management and expenditure tracking.
Median AP spend: The median AP spend saw significant fluctuations, rising from $243,364 in Q2 2023 to $305,040 in Q2 2024. This variability reflects bulk procurement strategies and large project expenditures typical in the tech industry.
Change in mean card spend (Q2 24 vs Q1 24)
Noteworthy outliers in card spend categories
Analyzing the change in mean card spend from Q1 2024 to Q2 2024 reveals several interesting outliers:
- Electronics (+21.4%): The notable increase suggests investments in hardware, infrastructure upgrades, or expansion into new technological areas.
- Office (+14.5%): Increased spending on office supplies and infrastructure could reflect a return to physical workspaces or expansion of office facilities.
- Advertising (-14.1%): The significant decline might indicate a strategic shift or budget reductions in marketing spend, potentially favoring organic channels or optimized digital marketing strategies.
Shift in spend over time
Examining the spend from Q2 2023 to Q2 2024 across various categories provides comprehensive insights into evolving operational priorities:
- Advertising: Advertising spend peaked in Q1 2024 at 30.3% before declining to 28.5% in Q2 2024. Despite the drop, a significant portion of the budget remains dedicated to advertising, highlighting its importance for market visibility.
- Cloud computing: The spend on cloud computing remained stable, around 8-9%, indicating the consistent role of cloud services in tech operations.
- Lodging: Increased from 4.2% in Q1 2024 to 4.9% in Q2 2024, reflecting a rise in business travel as tech companies increasingly engage in in-person meetings and events.
Biggest expenses
Major expense highlights
- Google Ads (-5.7% QoQ, +29.3% YoY): Despite a quarterly decline, the annual increase signifies continued investment in search engine marketing to drive traffic and leads.
- Facebook Ads (-34.5% QoQ, +17.3% YoY): The steep quarterly decline might reflect campaign optimization or budget realignment towards more effective channels.
- Amazon Web Services (+1.4% QoQ): Consistent use of cloud services underscores their critical role in operations.
- Apple (+20.9% QoQ): Significant rise suggests tech upgrades or increased provisioning of devices for employees.
What businesses are purchasing for the first time
New vendor purchases
- OpenAI and Anthropic: Initial small spends on these AI tools indicate early adoption and experimentation with artificial intelligence to enhance operations and innovation.
- Docusign: Investment in digital transaction management tools, crucial for maintaining compliance and efficiency.
- Canva and Figma: Spending on design tools suggests ongoing priorities in marketing and product development, essential for maintaining a competitive edge.
Comparing Q2 to Q1
- Surge in Electronics and Office Spend: Electronics and office expenses saw significant increases in Q2 24 (+21.4% and +14.5%, respectively), highlighting investment in technology infrastructure and office setups.
- Decrease in Advertising: Advertising spend saw a considerable decline in Q2 24 (-14.1%) compared to a significant increase in Q1 24 (+29.4%), suggesting a strategic shift or optimization in marketing activities.
- No relief for spend on airlines: After Q1 saw an mean increase of +47.9% from Q4 2023, the mean spend was not among the most significant declines in category spend, meaning average airline spend remains high.
Takeaways for large SMBs in tech companies
The spend patterns from Q2 2023 to Q2 2024 for large SMBs in the tech sector highlight several key trends:
- Consistent increase in card and AP spend: Reflects growing operational expenses and bulk payments, indicative of scaling operations and larger projects.
- Significant increase in electronics and office expenses: Points to investments in hardware and physical workspaces, essential for expanding operations.
- Strategic adjustments in advertising spend: Indicates a recalibrated focus on more effective marketing channels amidst evolving digital landscapes.
- Dependence on cloud and SaaS solutions: Emphasizes the critical role of digital infrastructure in maintaining operational efficiency and scalability.
- Emerging investments in AI and creative tools: Reflect forward-looking strategies to enhance operational processes and market presence.
Mid-market
Compared to other segments, mid-market tech companies had:
- Consistent high investment in advertising and cloud computing, emphasizing their strategic importance in growth and scale.
- Higher volatility in office and travel expenses, indicative of hybrid work models and adaptive travel policies.
Median card spend
Median card spend: The median card spend saw fluctuations, starting at $311,111 in Q2 2023, peaking at $321,354 in Q1 2024, and then declining to $294,515 in Q2 2024. This variability points to dynamic operational needs and strategic financial management.
Median AP spend: The median AP spend increased from $417,393 in Q2 2023 to $600,591 in Q2 2024, indicating larger procurement activities and bulk purchases typical of scaling operations.
Change in mean card spend (Q2 24 vs Q1 24)
Noteworthy outliers in card spend categories
Analyzing the change in mean card spend from Q1 2024 to Q2 2024 reveals several interesting outliers:
General merchandise (+14.1%): Significant increase, reflecting bulk purchasing of essential supplies and equipment.
Electronics (+13.1%): Higher investment in technology infrastructure and hardware upgrades.
Cloud computing (+10.9%): Growth indicates increased reliance on scalable cloud services to support operations.
Advertising (+4.3%): Modest increase, maintaining investment in brand visibility and lead generation.
Airlines (-15.8%): Decline suggests reduced business travel, lower prices, or better price shopping, potentially due to budget constraints or increased remote interactions.
Shift in spend over time
Examining the category spend from Q2 2023 to Q2 2024 provides insights into evolving operational priorities:
Advertising: Consistently high, ranging from 22.0% to 25.8%, indicating sustained investment in marketing and advertising to drive growth.
Cloud computing: Stable around 11-12%, highlighting its crucial role in tech operations and scalability.
Lodging: A steady presence around 6%, reflecting consistent business travel needs.
Biggest expenses
Major expense highlights
Google Ads (+4.2% QoQ, +11.3% YoY): Continued investment underscores the importance of search engine marketing for customer acquisition.
Amazon Web Services (+10.0% QoQ): Reflects growing use of cloud services, essential for handling increasing workloads.
Microsoft Advertising (+13.2% QoQ): Significant rise suggests diversifying advertising channels for broader reach.
Apple (+34.2% QoQ): Indicates significant technology upgrades or increased provisioning of devices for employees.
What businesses are purchasing for the first time
New vendor purchases
Squarespace & Canva: Small initial spends on these tools show a focus on building and maintaining an effective digital presence.
Anthropic and OpenAI: Emerging spending on these AI companies points to experimentation with AI to enhance operational efficiencies.
Docusign: Emphasizes investment in digital transaction management tools, critical for maintaining operational efficiency.
Wrapping up mid-market in tech companies
The spend patterns from Q2 2023 to Q2 2024 for mid-market tech companies highlight several key trends:
- Fluctuating card and AP spend: Dynamic operational needs and strategic bulk purchases reflect adaptive financial management.
- Significant increase in general merchandise and electronics: Indicates substantial investment in essential supplies and technological infrastructure.
- Stable cloud and SaaS spend: Emphasizes the critical role of digital infrastructure in maintaining operational efficiency.
- Emerging AI and digital tools: Initial investments in AI and tools like Canva point towards innovation and maintaining a competitive digital presence.
- Strategic advertising investments: Despite fluctuations, consistent advertising spend underscores its importance in driving growth and market visibility.
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