How Much Should I Spend on Marketing?

A company should spend 10% of its target revenue for stable growth and 20% of its target revenue for aggressive growth.

It’s important to base that percentage on “target revenue”, as marketing investment is a leading indicator.

It’s also important that the items contributing to the “marketing spend” are genuine marketing investments (ad spend, agency management fees, internal team of marketers). Sales expenses should not be factored in to this calculation, nor should new website investments.

Finally, bear in mind that every business, industry and competitive landscape is different. These numbers are guidelines and benchmarks.