One of the most pressing questions for business owners, both new and established, is “How do I know what my business’s marketing budget should be?” The answer is not always straightforward, as marketing budgets can vary widely depending on various factors. This guide aims to provide clarity on marketing budget allocation, considering industry standards, business size, and unique goals.

Assessing Your Business Needs

Before diving into numbers, it’s essential to assess your unique business needs.

  • Goals: What are your short-term and long-term goals? Whether it’s increasing brand awareness, boosting sales, or launching a new product, your objectives will influence your budget.
  • Industry: Different industries have different competition levels and customer acquisition costs. Analyzing your industry will help you set a realistic budget.
  • Business Stage: A startup might allocate a higher percentage of its budget to marketing to build awareness, while an established business may spend less.

Industry Standards

On average, businesses allocate about 7-12% of their gross revenue to marketing depending on their industry, size, and goals. Here’s how it typically breaks down:

  • New Businesses: 12-20% of gross revenue.
  • Established Businesses: 6-12% of gross revenue.

Some industries typically spend more than others when it comes to marketing efforts, including: financial services, travel and hospitality, and tech products.

Allocating Your Budget: Key Areas to Consider

1. Digital Marketing:

Investing in SEO, social media advertising, content marketing, and email marketing can help you reach a broader audience online.

2. Traditional Marketing:

Print advertising, television commercials, and radio spots are still effective, depending on your target audience.

3. Public Relations (PR):

Building a positive brand image through PR can be a valuable investment.

4. Analytics and Tools:

Investing in marketing analytics tools helps you track performance and make data-driven decisions.

Small, Medium, and Large Business Budget Breakdown

  • Small Businesses: Often spend around 7-12% on marketing, focusing on digital channels.
  • Medium Businesses: May allocate 6-10%, balancing both digital and traditional methods.
  • Large Businesses: Typically spend around 5-8%, often including comprehensive strategies covering various channels.


“How do I know what my business’s marketing budget should be?” is a multifaceted question. By considering your business’s unique goals, stage, and industry, you can formulate a marketing budget that aligns with your objectives.

Remember, marketing is an investment, not an expense. Monitoring ROI and regularly adjusting your strategy will ensure that your marketing dollars are well-spent.

Need personalized guidance on your marketing budget? Reach out to our expert team today!

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