Emilio GarciaManaging Partner, Boundify · Demand Gen Advisor

Marketing Budget as a % of Revenue

31 Oct 2022 · 1 min

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In this brief presentation, Emilio Garcia cites industry data from companies and Gartner indicating that typical marketing budgets fall between 5% and 15% of a company's revenue. He offers a practical rule for managers: compare the proposed marketing spend to the expected annual revenue. If the marketing budget is intended to drive additional revenue, the spend can be justified by allocating up to 10–15% of the projected incremental revenue to marketing activities. This provides a quick reference point for budgeting discussions with leadership.

Chapters

From what I have here from companies and from publications like Gartner, marketing budgets usually range between 5% and on the high end, 15%. So if you want a quick reference point to your budget, you already have come up with some numbers and you wanna present these to, to management and you wonder if your budget makes sense. One quick rule that you can use is to compare to the revenue that you're gonna have for the year, or in some cases, if your budget is intended to increase revenue and marketing is expected to have a contribution, then you can use that number to justify the investment itself, right? If I want to bring $1 million of additional revenue to the company, it would be reasonable to think that you can spend up to 10 or 15% of that potential revenue on marketing efforts that will bring that money