It’s budgeting season. That time of year when leaders gather around spreadsheets, stare at big numbers, and try to figure out what’s really worth it.
Marketing is one of the hardest lines to assign. Some years, it’s the first thing cut. Other years, it’s a growth lever. And depending on your industry, your goals, and your internal resources, the “right” amount to spend can vary wildly.
So how do you decide what to invest in marketing?
Here’s a practical way to approach it, and a few honest questions to ask yourself before you lock in next year’s budget.
1. Know where you stand
Before you pick a number, you need a clear view of where you’re starting. Are you building your brand from scratch? Launching a new product? Fixing a reputation? Expanding to new markets? Or are you simply trying to maintain momentum?
Brand new? You’ll need more than usual. Expect to invest in strategy, messaging, design, and foundational assets before anything even goes live.
Already established? You might shift your budget toward consistency. Keeping the message clear. Keeping your audience engaged. Making steady improvements.
Start by mapping your marketing maturity:
· Do you have a defined brand and message?
· Is your website current and helpful?
· Do you have clarity on your audience?
· Are your sales and marketing aligned?
· Are you sharing content consistently?
Wherever the gaps are, that’s where your budget should go.
2. Set your goals, not just your spend
The best budgets start with clear goals. Not just “we want to grow,” but real targets that marketing can help drive.
Are you trying to:
· Increase inbound leads?
· Shorten the sales cycle?
· Improve retention?
· Recruit talent?
· Launch something new?
· Build brand awareness?
Each of those has different tactics with different price tags. A brand awareness campaign might mean social ads and content production. A lead-gen push might mean email funnels and gated assets. Get specific, then prioritize.
3. Understand what different companies spend
There’s no one-size-fits-all number. But there are solid benchmarks to work from.
For B2B companies:
· Most spend 5% to 10% of annual revenue on marketing.
· Early-stage or high-growth firms may spend more—sometimes up to 20% if they’re aggressively trying to build visibility and pipeline.
For consumer brands:
· Marketing spend often lands between 10% and 20% of revenue, with higher ranges for direct-to-consumer businesses that rely on constant audience engagement.
The U.S. Small Business Administration recommends that businesses making under $5 million in annual revenue allocate 7–8% of gross revenue to marketing—assuming net margins of at least 10–12%. But in reality, most small and mid-sized businesses fall below that mark.
Sometimes that’s due to tight budgets. But often, it’s because they haven’t clearly defined what counts as “marketing.”
Does your marketing budget include sales enablement? Brand development? SEO? Website upkeep? Content creation? If you’re only counting campaign spend, you’re probably underinvesting.
4. Plan for both fixed and flexible costs
Your marketing budget isn’t just about how much, it’s also about how that money moves.
Fixed costs are your known, recurring investments:
· Retainers with agencies or consultants
· Subscriptions (email platforms, CRMs, analytics tools)
· Content production (monthly blogs, newsletters, social posts)
· Website hosting and maintenance
Flexible costs are campaign-based or seasonal:
· Paid ads
· Event sponsorships
· Video shoots or new collateral
· One-time design projects
Build both into your budget. That gives you a stable baseline while leaving room to respond to new opportunities.
5. Don’t just check a box
The easiest mistake is to treat your budget like a shopping list: a website refresh, plus four emails a month, plus a few events, plus social media. But quantity doesn’t equal clarity.
A better way? Start with your most important message. The one that best reflects your value and helps your audience understand who you are and what you do.
Then fund the channels that will deliver that message clearly and consistently.
It might mean doing less, but doing it better.
6. Remember: ROI doesn’t always show up right away
One of the hardest parts of budgeting for marketing is that results aren’t always immediate. And attribution can be nuanced. Some items, like paid ads or email campaigns, can drive short-term wins. Others, like branding, messaging, and content, build trust over time.
That doesn’t mean they’re not working.
Here’s a fact: a clear brand makes every sales conversation easier. A helpful article might convert six months from now. A polished site could be the reason a prospect reaches out in the first place.
To get a more accurate picture of what’s working, look beyond surface-level metrics. Tap into real analytics like site performance, engagement trends, conversion paths, repeat traffic. These signals give you a clearer read on brand health and audience connection, even if you’re not seeing instant spikes in revenue.
Yes, measure ROI. But make sure you’re tracking the right things over the right timeline. Marketing is often a long game. The returns are real, even if they take a little while to show up.
Your marketing budget should reflect your business reality. Your stage, your priorities, your people. It’s not a copy-paste number from someone else's strategy. It’s a thoughtful plan built around your specific goals.
The right budget gives your team focus, not just funds, and it ensures that every dollar spent is working toward something real.
If you’re planning for 2026 and want a second set of eyes, grab 15 minutes on my calendar. Let’s figure out what actually fits.
