How Much Should You Spend on Marketing in 2026?
The short answer:
Most businesses should invest between 5 and 15 percent of revenue into marketing. Lower than that, growth stalls. Higher than that, you’re usually pushing into aggressive expansion mode or recovering from years of underinvestment.
Your budget should match your goals, your industry, and the competitive landscape you’re operating in.
Why Your Marketing Budget Matters
Marketing is not a cost. It’s fuel.
The companies that grow consistently are the ones that put enough fuel in the tank.
Underfunding marketing is one of the most common reasons businesses:
Struggle to generate leads
Rely on inconsistent referrals
Have to discount to stay competitive
Lose visibility in search
Run outdated websites that resist converting
Your budget sets the ceiling for your momentum.
The Three Budget Ranges
1) 5 Percent of Revenue: Maintenance Mode
This range is for companies that want to stay level without much growth.
It supports:
Basic website updates
Light SEO
Occasional ads
Some content production
If you want meaningful growth, this usually isn’t enough.
2) 7 to 10 Percent of Revenue: Healthy Growth
Ideal for companies ready to build consistent momentum.
This supports:
Active SEO
Regular Google Ads
Ongoing social media content
Video production
Website improvements
Email nurture campaigns
This is the “steady climb” budget.
3) 10 to 15 Percent of Revenue: Aggressive Growth
This is for companies that want to accelerate.
It supports:
Multi-channel advertising
Retargeting
Higher volume content
Strong video strategy
A full website build or rebuild
Conversion optimization
This budget fuels faster growth and greater market share.
What Determines Your Ideal Percentage
Industry Competitiveness
Highly competitive fields (legal, healthcare, construction, financial services) often require more spend.
Sales Cycle Length
Longer cycles require more touchpoints, which require more content and more visibility.
Lifetime Customer Value
If clients stay for years, investing more upfront makes sense.
Market Maturity
A new market or service needs more awareness. Mature markets need more differentiation.
How Strong Your Current Marketing Systems Are
If you’re rebuilding from scratch, your budget needs to cover:
Website
SEO
Ads
Video
Messaging
Automation
If your systems are already strong, your budget maintains and optimizes.
Growth Goals
Want 5 percent growth? Spend near the low end.
Want 25 percent growth? You won’t get there with a 3 percent budget.
Where Your Marketing Should Go First
1. Website Experience
Your website is the hub. If it’s weak, everything else underperforms.
2. Search Engine Optimization
SEO fuels long-term, compounding growth.
3. Google Ads
Google captures demand. If people are searching for what you offer, you need to show up.
4. Social Content
This builds familiarity, proof, and awareness.
5. Video
Video converts faster and builds trust quicker than anything else.
6. Email Marketing
One of the highest ROI channels across all industries.
Invest in the assets that pay off long term.
The Cost of Underfunding Marketing
When businesses underinvest, they often experience:
Flat revenue
Declining visibility
Slow lead flow
Overdependence on referrals
Weak brand presence
Higher cost per acquisition over time
Lost opportunities to competitors
Not investing enough is usually more expensive than investing correctly.
The Cost of Overspending
On the flip side, overspending without strategy creates:
Unfocused channels
Low-quality traffic
Burnout on creative
Wasted ad spend
Poor attribution
The goal isn’t to spend more. It’s to spend at the right level with the right plan.
How to Build a Smart Marketing Budget
Determine your revenue
Decide your growth goal for the year
Use the 5–15 percent rule as a guide
Allocate budget across the core channels
Prioritize foundational assets first
Measure performance monthly
Adjust allocation quarterly
Budgets should evolve as your results improve.
Common Mistakes in Marketing Budget Planning
Cutting marketing first during slow times
Expecting big growth with tiny budgets
Overfunding one channel while neglecting others
Ignoring the website while running ads
Not investing in content or video
Expecting immediate returns from long-term strategies
Spending without a guiding plan
A poor budget choice can set a business back a full year.
How to Apply This Today
If you want to get your marketing spending aligned:
Add up last year’s revenue
Choose a target percentage based on growth goals
Compare that number to what you’re actually spending
Identify the gaps
Allocate the difference to the channels that move your business forward
Review every quarter
This will give you a clear path forward and prevent wasted spend.
FAQ
Is there a universal percentage every business should spend?
No. The 5–15 percent range works well, but industry and goals matter.
Can you grow with less than 5 percent?
Not meaningfully. You’ll mostly maintain your current position.
Should startups spend more?
Yes. Startups often need 20 percent or more because awareness doesn’t exist yet.
Is paid ads or SEO more important?
Both matter. SEO drives long-term growth. Ads drive immediate leads.
Not sure what your marketing budget should look like?
Leveret Drive helps companies build smart, sustainable plans that match their goals. Let’s create a strategy that fits your business.
