Marketing budgets vary significantly based on business stage, industry, goals, and margins. Here are frameworks to help determine the right investment.

Common Benchmarks

View Budget Guidelines

Percentage of Revenue: 5-15% for established businesses, up to 20%+ for growth stage
Industry Averages: Ecommerce 10-15%, B2B services 5-10%, consumer goods 15-20%
Minimum Viable: Enough for algorithms to learn (platform minimums)

Factors to Consider

  • Customer lifetime value (higher LTV justifies higher spend)
  • Margins (what can you afford per acquisition?)
  • Competition (more competition = higher costs)
  • Growth goals (aggressive growth needs more investment)
  • Seasonality (budget more for peak periods)

Starting Point

For most businesses starting paid digital marketing:

  • Single channel test: £2,000-£5,000/month
  • Multi-channel approach: £5,000-£15,000/month
  • Scaling: Increase as you prove ROI

Agency Fees vs Ad Spend

Budget both management fees and media spend. A common mistake is allocating everything to ads with nothing left for proper strategy and optimisation.