Ever been captivated by the beautiful billboards you see while driving to work? Did that particular Web advertisement make you feel very happy? Well, one thing’s for sure: the company made sure that their marketing plan ends up being an effective one. You may think that it’s very easy and that it’s all easy as pie. We would not actually say that it is difficult too as a ton of people enjoy their work in the marketing field. But a lot of effort goes into planning alone. One of the most challenging things about planning a good marketing strategy is probably how much money should go into implementing the plan. You do not want to overspend but you also do not want to go to cheap as the quality of your marketing materials can get compromised. You just want to hit the right amount that would not be too expensive while still being able to maintain a high quality output.

With all of these being said, nowadays, how much should one actually shell out when it comes to marketing? Well, if you want to find out, you better keep reading this article. We will let you in on a few budget tips for marketing that would help out budding marketing strategists and marketing associates like you. You want to make sure that you get a good bang for your buck, so you better check out the tips we have for you.

How Much Should Companies Be Spending on Marketing?

This is one question that is probably bugging the brains of marketing newbies and experts alike. We want to be honest with you about this: there is no definite answer to that question. There a ton of things that needs to be considered when coming up with a marketing budget for a smart marketing plan. One of the reasons why companies market themselves is because they want to grow quickly in their chosen industry.

How to Determine the Amount to Shell Out

The general rule of thumb when it comes to spending for marketing should be about 5% of the company’s total revenue. This is the amount to shell out if you want to maintain your current position in the market rankings. What about if you want to increase your rank in the market? This is where spending more will earn you more, given that everything from planning up until implementation was done right. It is simple marketing math.

Other Factors to Consider

The amount of money you will be spending should be adjusted accordingly depending on factors such as:

  • New products/services
  • Mergers
  • Acquisitions


There should be appropriate adjustments for such factors since these will affect the revenue of the business.

Gained Returns

Answering this question is not easy since there is no fixed amount of return that the company will receive. A higher amount of money spent does not actually guarantee a high increase in revenue. You have to consider that some marketing strategies take more time to garner results compared to other marketing strategies.

For a business to see if they are successful with their implementation of their strategies, metrics should be prepared. The metrics should have a list of factors that would help determine how successful a marketing campaign is.

Key Takeaway

  • There is no fixed amount of money that a company should spend for marketing.
  • To maintain ranks in the market, 5% of total revenue should be spent (including overheads, cost of printing, and other marketing materials).
  • To increase ranks in the market, spending more than 5% of total revenue is advised.
  • There is no fixed amount of return to be expected. Instead, metrics should serve as a tool in determining whether the marketing campaign was a success or flop.


There you have it! Our simple explanation about how much a company should spend for marketing campaigns. The explanation may seem easy but there are a lot of things that happen in between all the planning and budgeting. To have a better understanding and a wider perspective of marketing budgets and planning, you can choose to check out some of our articles such as what should be included in a marketing planhow do you create a marketing plan, and the essential content marketing checklist for small business.

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