One of the most common questions for business owners is: How much should I actually spend on marketing? Whether you’re just starting out or looking to grow, getting this number right can make a big difference to your results.
Industry Benchmarks
- Small Businesses: Typically, 7–12% of gross revenue is a smart range for most small businesses.
- Creative Agencies/Service Providers: If you’re in a growth phase or launching new services, 8–15% is recommended.
- Established Brands: If you’re simply maintaining your presence, 5–8% may be enough.
How to Apply This
Let’s say your business brings in £1,000–£4,000 per month. Here’s how the percentages break down:
- Minimum (Maintain): £80–£320/month (5–8%)
- Growth Mode (Recommended): £320–£600/month (8–15%)
What Should This Cover?
- Paid social media (Facebook, Instagram)
- Email marketing tools (Mailchimp, etc.)
- Networking events or sponsorships
- Website improvements and SEO
- Paid advertising (Google, LinkedIn, etc.)
- Outsourced content creation
Tips for Getting the Most Out of Your Budget
- Track ROI: Even smaller spends can deliver big results if you monitor what’s working.
- Test and Tweak: Try different channels and messages, then adjust based on results.
- Don’t Forget Time: Your own time spent networking or creating content is valuable too!
Final Thoughts
There’s no “one size fits all” answer, but using a percentage of revenue gives you a practical starting point. If you’re aiming to scale, lean towards the higher end. The key is to invest consistently and measure your results—so your marketing spend becomes a growth engine, not just an expense.
Need help building a marketing plan or want a custom budget breakdown? Get in touch!