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How much should a business spend on marketing?

A common benchmark is 5% to 15% of revenue, higher for growth-focused or newer businesses and lower for established ones coasting on reputation. But the honest answer is that it depends on your goals, margins, and how well your marketing converts. Spend tracks ambition and returns, not a fixed formula.

More useful than a percentage is knowing your numbers: what it costs to acquire a customer and what that customer is worth. If a channel reliably returns more than it costs, spending more there makes sense. If it doesn't, more budget just loses money faster.

The practical path is to start with an affordable budget, measure what works, then shift spend toward the channels that return the most. Scaling proven channels beats guessing a total, and it keeps marketing spend tied to results rather than hope.

Updated July 2026

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