How Much Should a Business Spend on Marketing?

"It depends."

If you've ever asked this question, you've probably heard that answer more than once.

While it's technically true, it's also not very helpful.

At DOMORRE Marketing, we get asked this question almost every week by business owners. From startups trying to grow, to established companies looking to gain market share.

So let's give you a real answer.

How Much Should You Budget?

We're glad you asked. While there's no magic number, there are some general guidelines.

SCENARIO 1: You're Maintaining Your Business

If your business is already established and your primary goal is maintaining current sales, many companies invest around 2%–5% of annual revenue into marketing.

This typically supports ongoing brand awareness, customer retention, and maintaining market presence.

SCENARIO 2: You're Trying to Grow Your Business

Truth is, growth requires investment.

Businesses looking to expand into new markets, launch products, hire aggressively, increase market share, or accelerate revenue often invest 7%–12% of annual revenue, and sometimes more during periods of rapid growth.

Marketing during this stage isn't just about spending more money, it's about creating enough visibility to generate momentum.

SCENARIO 3: You're Running a Startup

Bottom line, startups are different. If you're launching a brand-new business, percentages don't tell the whole story.

A startup with little or no revenue still needs a website, branding, photography, advertising, social media, and marketing strategy.

In those cases, it's often more practical to build a marketing budget based on business goals rather than current revenue.

Bigger Isn't Always Better

One of the biggest myths in marketing is that spending more automatically produces better results.

Trust us...it doesn't.

We've seen companies spend tens of thousands of dollars every month with very little to show for it. Every dollar needs a purpose.

The strategy behind the investment matters far more than the size of the investment.

Where Should That Budget Go?

Every business is different, but your marketing budget might include:

• Digital advertising (Google, Meta, YouTube, Connected TV)

• Website improvements

• SEO and AI search optimization (GEO)

• Photography and video

• Graphic design

• Email marketing

• Public relations

• Print materials

• Direct mail

• Sponsorships

• Events

• Promotional products

• Content creation

Some months you may spend heavily on advertising. Other months you might invest in professional video production or launch a direct mail campaign.

Marketing isn't about spending the exact same amount every month, it's about investing where it will have the greatest impact.

The Question You Should Really Be Asking

Instead of asking:

"How much should I spend on marketing?"

Ask:

"What am I trying to accomplish?"

Are you trying to:

• Increase revenue?

• Generate more leads?

• Open a second location?

• Launch a new product?

• Recruit employees?

• Build brand awareness?

• Enter a new market?

Your goals should determine your investment, not the other way around.

The Bottom Line

A successful marketing budget is about aligning your investment with your goals, your industry, your competition, and your stage of growth. Some businesses need to spend more. Others need to spend smarter.

The key is understanding the difference.

Not Sure What Your Business Should Be Spending?

That's one of our favorite conversations.

We help businesses build marketing budgets that match their goals, not someone else's formula.

We'll help you determine where your dollars will have the greatest impact, prioritize the right initiatives, and create a strategy that grows with your business.