Key Takeaways
- Marketing budgets average 7.7% of revenue, though it ranges widely by stage and ambition.
- The percentage matters less than where it goes, so tie spending to what you actually need.
- The most common mistake is paying for traffic to a website that cannot convert it.
- Start with a budget you can sustain, put it behind one or two channels, and measure enquiries, not likes.
- Manage the budget actively, moving money toward what works.
How much should you spend on marketing? It is one of the most common questions business owners ask, and most answers are either uselessly vague or suspiciously precise. There is a useful benchmark, though: Gartner's 2025 CMO Spend Survey found marketing budgets average 7.7% of company revenue, with half of leaders reporting 6% or less.
That is a starting point, not a rule. This guide gives you practical 2026 benchmarks for UK small businesses, where to put the money, and how to tell whether it is working.
The Rough Benchmarks
The widely used guideline is to spend a percentage of revenue, and Gartner's 2025 average of 7.7% is a sensible anchor. By stage:
- Established businesses, steady growth: around 5 to 10 percent of revenue.
- Growing businesses or competitive markets: 10 to 15 percent.
- New businesses building awareness from scratch: sometimes more, for a period.
These are starting points, not rules. A business with strong word of mouth may spend less, while a new entrant fighting for attention may need more at first.
Spend by Goal, Not by Habit
The percentage matters less than where it goes. Tie spending to what you actually need:
- Need to be found? Invest in SEO and your website.
- Need leads now? Paid ads can buy visibility quickly, while SEO compounds over time.
- Need to nurture enquiries? Email and marketing automation are low cost and high return.
- Need credibility? Content and branding pay off slowly but durably.
Do Not Forget Your Website Is Marketing
The most common budgeting mistake is pouring money into ads that send people to a website that cannot convert them. Your site is the hub every campaign points at. If it is slow or unclear, you are paying to fill a leaky bucket. In our experience, this is where most marketing budgets leak: the ads work, but the page they point at does not. Budget for the destination, not just the traffic, as we explain in what a website costs in the UK.
Start Small, Measure, Reallocate
You do not need a big budget to start, you need a measured one:
- Set a figure you can sustain for several months.
- Put it behind one or two channels, not six.
- Track what each delivers, especially enquiries and sales, not just likes.
- Move money toward what works and away from what does not.
Marketing is an investment you manage, not a bill you pay once. Measure return properly, as in our guide to social media ROI.
Frequently Asked Questions
What percentage of revenue should go to marketing? Gartner's 2025 survey puts the average at 7.7%. For most UK small businesses, 5 to 15 percent is a sensible range, higher when you are growing fast or new to the market.
Should I spend on ads or SEO? Both have a place. Ads buy visibility quickly, SEO builds it durably. A common approach is ads for short-term leads while SEO compounds in the background.
How do I know my marketing is working? Track enquiries, leads and sales by channel, not vanity metrics. If you cannot tie spend to results, fix your tracking before adding budget.
How much should a startup spend on marketing? Often more than the average as a share of revenue, because you are building awareness from nothing. Keep it sustainable and measured rather than chasing a fixed number.
What if I only have a tiny budget? Put it all behind one channel you can measure, usually local SEO or a focused paid campaign, and make sure your website can convert the visitors it brings.
The Bottom Line
Spend roughly 5 to 15 percent of revenue, weighted to your real goals, make sure your website can convert the traffic you pay for, and manage the budget actively by moving money toward what works. Done that way, marketing is one of the best investments a small business can make.
If you want help building a marketing plan that fits your budget, get in touch. We help UK businesses spend smartly across digital marketing.
