Where Do You Start?
Choosing a marketing budget can be challenging. Although there is no one-size-fits-all amount, there are several factors to consider. New businesses typically dedicate 12–20% of their gross revenue to marketing, while more established businesses generally allocate 6–12%. Ultimately, the right amount depends on your unique goals and circumstances.
*Marketing Allocation Percentage Breakdown (based on growth goals, location, industry, etc.)
What Should You Consider?
1. The Stage of Your Business
The stage your business is at in its growth journey really influences how much you should consider investing in marketing. If you are a new or rapidly growing company, it often makes sense to invest more to boost awareness and build momentum. On the other hand, established, steady businesses or those close to full capacity might not need to spend as much.
2. Demographics and Target Audience
Start by identifying your target audience. Connecting with a larger group usually demands a bigger budget to make your marketing effective. It’s also vital to know how your audience prefers to consume content, whether through social media, streaming services, search engines, radio, or other platforms. Your marketing budget should be aligned with the channels where your audience is most engaged.
3. Different Types of Marketing
Marketing channels differ in cost. Greater efforts, such as TV commercials or multi-platform campaigns, tend to require larger budgets. In contrast, more targeted approaches, such as local radio ads or specific online ads, generally have a smaller reach and lower costs. The combination of tactics you choose will determine your overall spending.
4. Marketing, Business, and Customer Goals
To effectively implement new marketing strategies, define clear goals. Whether your goal is to boost sales, improve brand awareness, generate leads, or increase engagement, your investment should support these objectives. Consistently maintaining a presence within a manageable budget helps keep your business visible to your audience. For larger campaigns or when aiming to reach a wider audience, it is generally necessary to boost your investment to achieve significant results.
5. How Long/Often You Plan to Advertise
Think carefully about when and how long your ads run. Ongoing ads all year need steady funding to stay visible. If you are running a short-term campaign or hosting a single event, you might only need to boost your budget temporarily rather than committing to a long-term plan.
Bringing It All Together
Setting your marketing budget shouldn’t feel like guesswork. It’s a strategic decision that should reflect where your business stands today, where you want it to go, and what it will realistically take to get there. The most effective budgets are intentional, flexible, and aligned with measurable outcomes. When your investment matches your objectives, marketing becomes a growth driver, not just an expense.
If you’re unsure where to begin, start with your goals. What are you trying to accomplish in the next 6–12 months? From there, you can build a budget that supports the right mix of channels, messaging, and timing to move your business forward.
Still have questions about what the right marketing investment looks like for your business? Let’s talk. A thoughtful strategy and a clear plan can help you spend smarter, not just more, and position your business for sustainable growth.
