2025 Update to How Much Should You Budget for Marketing

While industry benchmarks suggest allocating 7-8% of revenue to marketing for B2B companies, the optimal budget is not a one-size-fits-all solution.

Budget as a Percentage of Company Revenue

In today’s competitive business landscape, determining the right marketing budget can be a critical factor in a company’s success. For B2B companies, industry experts have provided valuable insights to guide this decision-making process.

The CMO Survey and the U.S. Small Business Administration suggest that the average B2B company should allocate approximately 7-8% of their revenue to marketing efforts. Interestingly, this recommendation holds true even for smaller businesses with revenues under $5 million.

When it comes to allocating this budget, many companies opt for an even split between building brand awareness and lead generation. However, the actual amount spent on brand advertising can vary based on several factors, including the company’s growth stage, competitive landscape, industry-specific considerations, and overall marketing strategy and goals.

Factors Influencing Marketing Budgets

• Economic Outlook: The current economic climate is causing some companies to be more cautious with their marketing spend².
• Digital marketing channels, with companies allocating an average of 56% of their marketing budgets to online efforts in 2022³.
• AI and Automation: Many companies are investing in AI-driven marketing tools to improve efficiency and personalization⁴

Industry-Specific Insights¹

Different sectors allocate varying percentages of their revenue to marketing:

• Financial Sector: Banks and insurers spent an average of 7-10% of their revenue on marketing in 2023.
• Technology Sector: Tech companies invested an average of 10.1% of their revenue in marketing in 2023, with 65.7% going to digital channels.
• Manufacturing: average spending increased to approximately 7-8%
• Professional Services: On average, professional services firms dedicate an average 7% of their revenue to marketing⁶

Emerging Trends

• Increased focus on data-driven decision making and analytics
• Multi-modal search and technical SEO
• Growing importance of content marketing- Mid-market companies are typically spending between $10,000 to $40,000 per month on content marketing services⁷. This range accounts for various content creation, distribution, and promotion activities.
• Rising investment in social media advertising, particularly on platforms like LinkedIn

While industry benchmarks suggest allocating 7-8% of revenue to marketing for B2B companies, the optimal budget is not a one-size-fits-all solution. Success lies in adapting to the dynamic business environment, embracing digital channels, and leveraging emerging technologies like AI.

Companies must remain flexible, adjusting their marketing spend in response to economic shifts and industry trends. The key is not just the amount spent, but how effectively resources are utilized across traditional and digital platforms. By viewing marketing budgets as dynamic investments in growth and customer relationships, and continuously evaluating strategies, B2B companies can maximize their return on investment and maintain a competitive edge in an ever-evolving marketplace.