If you’ve ever tried to figure out how much to spend on marketing, you know it’s a bit like asking, “How long is a piece of string?” Every article, advisor, and well-meaning business buddy seems to have a different answer. Some say 5% of revenue. Others say 10%. A few will tell you to “spend whatever it takes.” Helpful, right?

Here’s the truth: your small business marketing budget doesn’t need to be a guessing game. It’s not about copying what the big guys do or throwing every spare dollar into Facebook ads. It’s about creating a plan that fits your business—your goals, your stage of growth, and your industry realities.

In this guide, we’ll cut through the noise and show you:

• How much small businesses really spend on marketing (with benchmarks you can use).
• The differences between B2B vs. B2C budgets (because not all businesses play the same game).
• Why startups should budget differently than scaling companies.
• A step-by-step framework for building a budget that doesn’t just look good on a spreadsheet but actually drives growth.

Why You Need a Small Business Marketing Budget 

Let’s be honest: most small business marketing is improvised. A few boosted posts here. A random trade show there. Maybe a Google Ads campaign when things get quiet. And while that might keep you “doing marketing,” it rarely delivers consistent results.

That’s where a budget comes in. It’s not just about tracking dollars—it’s about turning chaos into strategy. A marketing budget helps you:

• Stay focused: No more shiny object syndrome. You’ll know what deserves investment and what doesn’t.
  
• Spend smarter: You can align dollars with goals instead of spreading yourself thin across too many channels.
  
• Measure ROI: When you track spend vs. results, you can cut what’s not working and double down on what is.

For small businesses, every dollar has a job to do. A budget makes sure each one is pulling its weight and that you’re not left wondering where it all went at the end of the quarter.

How Much Should a Small Business Spend on Marketing?

The question every small business owner asks: “How much should I spend?”

A good benchmark, according to The 2024 CMO Survey, is around 7.7% of revenue. But let’s unpack that a bit more: 

• Established businesses usually spend between 5–10% of revenue.
• Startups often need to invest more aggressively, 10–15% or higher, to build visibility and brand awareness.
• Highly competitive industries (like e-commerce, real estate, and restaurants) lean toward the higher end because the noise level is higher.
• Niche markets or those with longer sales cycles may require less, but they also need more patience and consistency.

The bottom line: percentages are useful, but they’re not the whole story. Your spending should reflect your business goals. If your objective is steady growth, a smaller budget may suffice. If you’re trying to capture market share quickly, you’ll need to go bigger.

Typical Marketing Budget for Small Business: Benchmarks by Industry

Not all businesses are created equal when it comes to marketing spend. A coffee shop doesn’t need the same budget structure as a SaaS startup, and a local law firm has different priorities than an online retailer.

Here’s a snapshot of average marketing spend by industry, as a percentage of revenue:

• Consumer services: ~15%
  
• Retail/wholesale: ~12%
  
• Tech/software: ~10%
  
• Professional services (legal, accounting, consulting): ~5–7%
  
• Manufacturing: ~2–5%
  (Source: Deloitte CMO Survey / cmosurvey.org)

These are averages, not prescriptions. Think of them as a compass, not a GPS. Your real budget should reflect:

• Your growth goals (steady vs aggressive).
  
• Your sales cycle (shorter cycles usually mean heavier marketing to stay top of mind).
  
• Your competitive environment (more crowded markets require more investment to stand out).

B2B vs B2C Marketing Budget Differences

When you sell to other businesses (B2B) versus directly to consumers (B2C), your budget priorities change.

• B2C companies often spend 13–14% of revenue on marketing.
  
• B2B firms average closer to 8–10%.
  (Sources: MIT Sloan Review, Forrester)

What that looks like in practice:

• B2B marketing focuses more on content, sales enablement, account-based marketing, and relationship-building. Budgets lean toward quality lead generation rather than mass awareness.
  
• B2C marketing is often about reach and visibility—bigger spends on social ads, influencers, promotions, and customer acquisition campaigns.

Startup vs Scaling: How Business Stage Affects Your Small Business Marketing Budget

A startup and a scaling business might both spend 10% of revenue on marketing, but what they spend it on looks completely different.

Startups focus on the foundation:

• Branding and identity (logo, style, messaging)
  
• Website build (often the biggest upfront cost)
  
• Core assets like social channels, launch campaigns, and initial awareness

That’s why startups often spend 10–15% (or more) of projected revenue, according to the SBA. 

Check out our blog post on budgeting for a website for a better understanding of one of the largest foundational costs to plan for. 

Scaling businesses shift their spend from building to amplifying:

• More dollars into lead generation campaigns
  
• Heavier investment in SEO and content production
  
• Paid media at higher budgets
  
• Specialized roles or outsourced expertise (ads manager, content strategist)

Here, budgets normalize to 5–10% of revenue—but since revenue is higher, the dollar amount increases.

And the data backs this up: a 2024 Forbes/AllBusiness report found that 39% of small businesses planned to increase their marketing budgets in 2024, and nearly half (46%) expected to spend at least 10% more than the year before (Source: Forbes). In other words, once businesses move from startup to scaling, most owners realize they need to invest more aggressively in marketing to sustain growth.

Scaling businesses often benefit from leadership guidance without a full-time hire. See our guide to budgeting for a fractional CMO to learn more about this option. 

Step-by-Step Framework to Create Marketing Budget for Small Business Growth 

So far, we’ve looked at percentages and benchmarks. But how do you actually put a budget together? Here’s a five-step framework that works whether you’re a brand-new startup or a scaling business trying to level up.

1. Define Your Goals

Marketing without goals is like throwing darts blindfolded. You’ll hit something eventually, but probably not what you want.

Ask yourself:

• Do you want more leads?
  
• Do you want brand awareness?
  
• Do you want repeat purchases or customer loyalty?
  
• Are you aiming for fast growth or steady stability?

Your goals should dictate where your dollars go. For instance:

• Awareness goals → heavier investment in ads and PR.
  
• Lead generation goals → more SEO, content, and sales funnels.
  
• Loyalty goals → email marketing, customer experience, and retention programs.

2. Estimate Revenue (or Set a Baseline)

If you have revenue history, apply the percentage benchmarks:

• 5–10% of revenue if you’re established.
  
• 10–15% if you’re a startup or need fast growth.

Example: $1M in annual revenue × 7% = $70,000 marketing budget.

If you’re pre-revenue (many startups are), you’ll need to set a baseline based on must-have investments: a website, branding, and enough ad spend to get in front of your audience.

3. Prioritize Channels

One of the fastest ways to waste money is spreading yourself across too many platforms.

Instead, pick two or three core channels and stick with them until you see traction. For example:

• A local service business might focus on Google Ads, SEO, and community sponsorships.
  
• A DTC e-commerce brand might invest in Instagram ads, influencer marketing, and email automation.
  
• A B2B SaaS company might prioritize LinkedIn, webinars, and content marketing.

4. Allocate to Essentials and Tools

Think of your budget as buckets. Every business needs some mix of:

• Branding & creative (your identity and visuals)
  
• Website & tech (the engine that drives your marketing)
  
• Advertising & campaigns (fuel for reach and visibility)
  
• Content & SEO (long-term lead generation)
  
• Software & tools (the systems that make it all run)
  
• Experiments (testing new ideas)

5. Track, Measure, and Adjust

Here’s the part most small businesses skip—and it’s where the money gets wasted.

Your first budget won’t be perfect. That’s normal. The key is to measure results and shift dollars where they’re actually producing ROI.

• Use tools like Google Analytics, HubSpot, or even a spreadsheet.
  
• Set quarterly reviews: what’s working, what’s not, what needs more investment?
  
• Kill what isn’t working quickly and reinvest in what is.

Marketing budgets are living, breathing documents. The businesses that win are the ones that adapt fast.

Example Small Business Marketing Budget Breakdown (Template)

Percentages are nice, but numbers are better. Here’s how a $1M business investing 7% ($70,000) into marketing might allocate funds:

What This Means in Practice

• A startup might allocate more (20–25%) to branding and website since they’re building the foundation.
  
• A scaling business might push 50%+ toward advertising and content because the infrastructure is already in place.
  
• B2B businesses might weight more toward content and SEO, while B2C businesses spend more on advertising and awareness.

For context: a recent analysis by SmallBizTrends found that small businesses spent an average of 8.7% of revenue on marketing and advertising last year (Source: SmallBizTrends). So using a 7% budget in our $1M example ($70,000) is reasonable — but it could be conservative if your growth goals are ambitious or if your industry benchmarks are higher.

The point isn’t to copy these numbers exactly—it’s to use them as a framework and adjust based on your goals and stage of growth.

Common Marketing Expenses Small Businesses Should Plan For

Many small business owners underestimate the hidden costs of marketing. Here are the categories you’ll want to include in your budget:

Advertising & Paid Media

• Google Ads for search visibility
  
• Social ads (Meta, TikTok, LinkedIn)
  
• Local advertising (radio, print, sponsorships)

Pro Tip: Always start with small test budgets before scaling campaigns.

Content & SEO

• Blog writing, video, and graphics
  
• SEO tools (Ahrefs, SEMrush, Moz)
  
• Link-building and on-page optimization

Branding & Creative

• Logo design or refresh
  
• Professional photography or video
  
• Brand guidelines and templates

Software & Tools

• CRM systems like HubSpot or Zoho
  
• Email platforms (Mailchimp, Klaviyo)
  
• Social media scheduling tools
  
• Analytics platforms

Events & Local Marketing

• Trade shows and expos
  
• Sponsorships and community partnerships
  
• Swag, signage, and printed materials

Experiments

• Influencer campaigns
  
• Emerging platforms like TikTok or podcasts
  
• Pilot campaigns to test new ideas

Pro tip: Reserve 5–10% for experiments. Marketing changes fast, and this “flex fund” gives you agility without blowing your budget.

Conclusion: Creating the Right Marketing Budget for Your Small Business

There’s no single “right” marketing budget for all small businesses. But there is a smarter way to approach it.

• Startups spend more on brand and assets.
  
• Scaling businesses shift spend into campaigns and optimization.
  
• B2B companies focus on content and lead nurturing.
  
• B2C companies invest more in ads and brand awareness.

The key isn’t how much you spend—it’s spending strategically. With a clear plan, you’ll stop guessing, stop wasting, and start marketing with confidence.

Ready to take the guesswork out of your budget? Schedule a Free Strategy Session with Flyrise, and let’s make every dollar of your marketing budget work harder.

FAQs: Small Business Marketing Budget Creation 

What is a reasonable marketing budget for a small business?

A reasonable marketing budget for a small business is 5–10% of annual revenue. Startups or companies in competitive industries often spend closer to 10–15% to build brand awareness and attract customers quickly.

What percentage of revenue should a small business spend on marketing?

The SBA recommends that small businesses spend 7–8% of gross revenue on marketing if they make under $5 million per year. This budget should cover both brand-building and promotional activities.

What is the 70/20/10 rule in marketing budgets?

The 70/20/10 rule says businesses should invest 70% of their marketing budget into proven strategies, 20% into emerging channels, and 10% into experimental ideas. This ensures stability while encouraging innovation.

How do I create a small business marketing budget?

To create a marketing budget for a small business:

1. Define your marketing goals.
   
2. Estimate revenue and set aside 5–10%.
   
3. Choose 2–3 main channels to focus on.
   
4. Allocate funds to branding, ads, content, and tools.
   
5. Review results quarterly and adjust.

Should employee salaries be included in a small business marketing budget?

Employee salaries can be included in a marketing budget, but many small businesses separate staff costs from campaign spend. The key is consistency: pick one method and track it the same way every year.

What is the average marketing spend for small businesses in the U.S.?

On average, U.S. small businesses spend about 7–8% of revenue on marketing. B2C companies usually spend more (10–14%) to reach consumers, while B2B businesses average closer to 8–10%.