Marketing Budget Benchmarks 2025: How Much Should You Really Spend?

If you’re asking, “How much should we be spending on marketing in 2025?” — 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 2025?

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 B2B firm invests 8% of 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%.

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

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

Where Marketing Dollars Go in 2025 (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 2025 to your business? Let’s talk.

References

  1. HubSpot. What Percentage of Revenue Should Be Spent on Marketing? https://blog.hubspot.com/marketing/marketing-budget-percentage

  2. HawkSEM. What Percentage of Revenue Should Be Spent on Marketing? https://hawksem.com/blog/what-percentage-of-revenue-should-be-spent-on-marketing/

  3. 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/

  4. Gartner. CMO Spend Survey. https://www.gartner.com/en/marketing/topics/marketing-budget

  5. Invoca. Marketing Budget Trends. https://www.invoca.com/blog/marketing-budget-trends


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