If you’re asking, “How much should we be spending on marketing in 2026?” you’re not alone. Marketing costs are rising. Digital platforms are more competitive. And AI tools are everywhere.
So how do you know what a smart budget looks like this year?
Most businesses either spend too little or too blindly. This post shows how to avoid both — with benchmarks, % of revenue rules, and smart allocation tips.
What Are Marketing Budget Benchmarks (and Why They Matter)?
A benchmark is just a guide — a reference point to compare your spending against others in your industry. Think of it like GPS for your marketing dollars.
It tells you whether you’re heading in the right direction or driving off a cliff.
Without one, you’re guessing. And guessing = wasted money or missed growth.
How Much Are Businesses Spending in 2026?
Let’s get to the numbers. These come from industry research by Gartner, HubSpot, Forrester, and HawkSEM:
B2B companies: 2–5% of total revenue
B2C companies: 5–10% of revenue
U.S. SBA recommendation: ~8% of revenue for profitable companies under $5 million
Forrester: average marketing budgets are 7.8% of company revenue
Gartner 2023 CMO Survey: industry average is 9.1%
And by industry (HawkSEM):
Consumer goods: 18.09%
Education: 14.59%
Media/Comms: 13.82%
Finance: 11.18%
Tech software: 9.16%
Healthcare: 9.31%
Energy: 3.21%
These are starting points, not hard rules. A SaaS brand in growth mode might spend 20%. A legacy manufacturer might spend 4%.
And one important note: Gartner’s survey tends to represent larger organizations. So don’t look at 7.8% and assume that’s automatically the right number for your small or midsize business.
Even the SBA’s guidance on marketing budgets makes the point that there’s no one-size-fits-all number.
Those are the broad averages — but how do you actually use them to plan your own spend?
“Marketing Spend % Revenue” — The Smart Rule of Thumb
Use a percentage of revenue to guide your marketing budget. It grows with you, and it’s easy to explain.
Cheat sheet:
<$1M in revenue: 7–12%
$1M–$10M: 5–10%
$10M+: 4–8%, depending on goals
Real-world example:
$250K business × 8% = $20,000/year or ~$1,600/month
$1M business × 7% = $70,000/year or ~$5,800/month
$2M business × 7% = $140,000/year or ~$11,700/month
$5M business × 7% = $350,000/year or ~$29,000/month
| Annual Revenue | 5% Marketing Budget | 8% Marketing Budget | 10% Marketing Budget |
|---|---|---|---|
| $250,000 | $12,500 | $20,000 | $25,000 |
| $500,000 | $25,000 | $40,000 | $50,000 |
| $1 million | $50,000 | $80,000 | $100,000 |
| $2 million | $100,000 | $160,000 | $200,000 |
| $5 million | $250,000 | $400,000 | $500,000 |
Use this number as your ceiling. Then work backward to build your monthly plan.
Need help deciding how to split that budget? Check out: Marketing Budget Breakdown: What You're Really Paying For\
How much should you spend on marketing?
Enter your annual revenue and choose your growth goal. We'll give you a practical starting range for your marketing budget.
This is a planning benchmark—not a hard rule. Your margins, customer value, competition and capacity should also factor into your budget.
Your recommended marketing budget will show up here.
How Much Should You Spend Based on Your Growth Goals?
Revenue is one way to look at it. Your growth goals matter too.
Another quick cheat sheet:
Maintaining your current position: 3–5%
Steady growth: 5–10%
Aggressive growth: 10–15%+
New business, product, or market: 10–20%+
A business with high margins, strong customer lifetime value, and room to take on more customers can afford to be more aggressive.
A business with thin margins or limited capacity probably shouldn’t be.
The goal is to spend enough to create growth — without spending more than the economics of your business can support.
Where Marketing Dollars Go in 2026 (By Channel)
Here’s how most businesses are splitting budgets this year (Invoca):
Paid Search/Social: 25–40% (Meta, Google, TikTok rising)
SEO + Content: 15–25% (long-term ROI)
Email/SMS: 10–15% (owned channels = high control)
Creative/Video: 10–20% (especially short-form)
Strategy, messaging, and analytics: 10–15%
B2B? Focus more on content and email. Ecom? You’ll lean heavier into ads and retention marketing.
Want help building a strategy that matches your budget? Start with: How to Develop a Content Marketing Strategy for Small Businesses
Are You Overspending or Underspending?
Great question. Let’s check.
You might be overspending if:
You’re buying ads without tracking ROI
You’ve scaled spend without scaling conversion
Your content has no strategy or measurement
You might be underspending if:
You’re invisible online
You rely on referrals but want more growth
You can’t afford to test offers, audiences, or messages
If you're not sure, see this: 5 Marketing Mistakes Killing Your Revenue
Budget Isn’t Just About Ads
Marketing isn’t just ads. Your budget should also cover strategy, content, and optimization:
Content creation
Brand messaging
Strategy + consulting
Video production
Website optimization
If you’re only funding promotion without production, you’re paying to shout into the void.
Learn more in: Marketing Budget Breakdown: What You're Really Paying For
And while you’re at it: stop doing this → The Problem With Minimum-Effort Marketing
Conclusion: Pick a Number. Stick With It. Adjust With Data.
Marketing success doesn’t happen by accident — it happens by planning.
Start with a benchmark. Use your revenue as a guide. Split it across smart channels. Track the results. Then optimize.
Need help applying these marketing budget benchmarks for 2026 to your business? Let’s talk.
Marketing Budget FAQs
How much should a business spend on marketing?
A common starting point is around 5–10% of annual revenue for an established business. Companies focused on aggressive growth, launching something new, or entering a new market may need to spend 10–15% or more.
The right number depends on your margins, customer value, competition, growth goals, and how much new business you can realistically handle.
What percentage of revenue should go toward marketing?
For many businesses, 5–10% of revenue is a useful benchmark.
Smaller or fast-growing companies may spend more, while larger or more established companies may spend less. The percentage should be treated as a starting point—not a rule.
What is the average marketing budget in 2026?
According to Gartner’s 2026 CMO Spend Survey, marketing budgets average 7.8% of company revenue.
Keep in mind that Gartner’s survey primarily represents larger organizations, so small and midsize businesses shouldn’t automatically assume 7.8% is the right target for them.
How much should a small business spend on marketing?
A small business may spend anywhere from roughly 5–12% of annual revenue on marketing, depending on its stage and growth goals.
A newer business that needs to build awareness may need to invest more aggressively than an established company with strong referrals, repeat customers, and brand recognition.
How much should a $1 million business spend on marketing?
Using a 5–10% benchmark, a business generating $1 million in annual revenue might plan to spend approximately $50,000–$100,000 per year on marketing.
That works out to roughly $4,200–$8,300 per month.
The actual budget should still be based on profitability, customer acquisition costs, capacity, and the company’s growth goals.
What should be included in a marketing budget?
A marketing budget may include:
Website design and development
SEO
Google Ads and other paid search campaigns
Social media advertising
Content marketing
Email marketing
Branding and design
Marketing software and tools
Photography and video
Agency or consultant fees
The exact mix should depend on where your customers are most likely to find you and which channels can produce measurable results.
Should marketing budget be based on revenue or profit?
Revenue is usually the easier benchmark for planning because it provides a consistent percentage to work from.
But revenue shouldn’t be the only consideration.
Your margins and profitability matter too. A company with strong margins may be able to invest more aggressively in customer acquisition than a business generating the same revenue with much thinner margins.
Is 10% of revenue too much to spend on marketing?
For a business pursuing steady or aggressive growth, 10% may be completely reasonable. Startups, companies entering a new market, and businesses trying to grow quickly may spend even more.
The better question is whether your marketing investment is producing enough profitable growth to justify the spend.
Author: Noah Swanson
Noah Swanson is the founder and Chief Content Officer of Type and Tale.
References
HubSpot. What Percentage of Revenue Should Be Spent on Marketing? https://blog.hubspot.com/marketing/marketing-budget-percentage
HawkSEM. What Percentage of Revenue Should Be Spent on Marketing? https://hawksem.com/blog/what-percentage-of-revenue-should-be-spent-on-marketing/
Forrester. The Average B2B Firm Invests 8% of Revenue in Marketing. https://www.forrester.com/blogs/the-average-b2b-firm-invests-8-of-revenue-in-marketing-but-thats-not-the-whole-story/
Gartner. CMO Spend Survey. https://www.gartner.com/en/marketing/topics/marketing-budget
Invoca. Marketing Budget Trends. https://www.invoca.com/blog/marketing-budget-trends