Executive Summary
As buyers flock to newer AI channels such as Claude, Gemini, and ChatGPT to research solutions, marketing budget planning has grown more complex. While most mid-market businesses invest between 2% and 10% of annual revenue in marketing, the right budget depends on your growth goals, industry, and competitive landscape. In 2027, companies should plan for investments in people, technology, advertising, content, events, and research, while recognizing that AI impacts multiple areas of the budget. This guide explains what to include in your spending plan and how to allocate your investment for long-term growth.
How Much Should a Mid-Market Company Spend on Marketing?
If you’re planning next year’s budget, you’re probably asking one question:
How much should we spend on marketing?
There isn’t a universal answer, but there is a better way to think about the question.
Several years ago, marketing budgets focused on websites, advertising, Google, trade shows, and sales support. Today, buyers discover companies in many more places, including LinkedIn, podcasts, and AI platforms like Claude, Gemini and ChatGPT.
Marketing hasn’t just gained another channel. The buying journey has changed. The companies that stand out in 2027 will invest in being visible wherever buyers look for answers/solutions and find a trusted brand.
How Much Should You Budget for Marketing?
Most mid-market companies invest 2% to 10% of annual revenue in marketing, depending on their industry, growth goals, and competitive landscape.*
Instead of asking, “What’s the average?” start by asking:
- How much do we want to grow next year?
- What are the sales goals we need to reach?
- Are we entering new markets or launching new services?
- Do we have the people and resources to support expansion?
Your marketing spend should reflect your business goals, not simply an industry benchmark.
*Source: Forrester, 2025 B2B Marketing Budget Benchmarks Overview.
Why Marketing Budgets Are Changing
One of the biggest shifts in marketing is how buyers research companies. Many people now ask AI platforms questions they used to type into Google.
Examples include:
- Who are the best business law firms in Houston?
- What engineering firms specialize in data centers?
AI tools summarize the answers before a buyer visits a website. That means companies need to earn visibility in both traditional search results and AI-generated recommendations.
Where AI Is Actually Showing Up in Your Budget
AI isn’t just a new software line item. It’s touching almost every part of the budget:
AI Investment
Why It Matters
Labor
Teams spend more time developing expert content, reviewing AI-generated work, training employees, and maintaining quality.
Marketing Technology
Companies are investing in AI tools, CRM platforms, SEO/AIO/GEO, analytics and AI visibility monitoring.
Content Creation
Research reports, case studies, videos, thought leadership, and educational content help build authority with buyers and AI platforms.
The biggest AI-related cost for most mid-market companies isn’t a software subscription. It’s the people-time it takes to create content that’s actually trustworthy enough for AI to cite.
The 6 Buckets Every Marketing Budget Should Cover
Every company’s mix looks a little different, but most budgets break down into six categories:
- Labor (in-house + agency) Salaries, benefits, agency retainers, freelancers, PR support, creative resources. For most companies, this is the single biggest line item.
- Advertising & Media Google Ads, LinkedIn, social, sponsorships, paid lead generation, traditional media. The fastest way to buy visibility is when it’s tied to a clear goal.
- Marketing Technology CRM, marketing automation, website hosting, analytics, SEO tools, AI visibility monitoring, GEO platforms. This bucket keeps growing.
- Content Creation Video, photography, design, copywriting, case studies, research reports, blogs, and press releases. Content creation does double duty: building trust with buyers and getting cited by AI.
- Events & Trade Shows Booths, sponsorships, travel, customer events. Still a major pipeline driver in a lot of B2B industries with more people craving human connection.
- Research & Strategic Planning Market research, competitive analysis, customer interviews, brand studies. Easy to skip, but it’s what makes every dollar work harder.
Before You Finalize the Budget, Ask Your Team
- Are we investing enough to actually hit our growth number?
- Are we balancing lead gen with long-term brand visibility?
- Do we have a plan for showing up in AI search?
- Is our content good enough to demonstrate real expertise?
- Do we have the people, partners, and tools to pull this off?
- Are we measuring the initiatives that actually drive growth?
Bottom Line
A marketing budget isn’t just a spreadsheet, it’s your growth plan in dollar form. The companies that win in 2027 will be the ones that are easiest to find, easiest to trust, and easiest to choose by humans and AI alike.
Want to estimate your marketing budget? Try our Marketing Budget Calculator to see recommended spending levels and how your investment can be allocated across labor, advertising, technology, content, events, and research.
