The first category consists of senior marketers. These marketers are often preparing the ground for why their department’s marketing budget should be enlarged. Since most decision-makers rely heavily on numbers, these marketers not only want good benchmarks but also want data to back up their claim and show the marketing department as an investment, not as a cost.
The other group includes the decision-makers. A lot of the decision-makers think that marketing is an intangible cost that does not always give immediate returns. In their view, cutting down on marketing expenses could be an easy way to improve the profit. They might feel that being able to demonstrate that a particular company is spending more than necessary on marketing could be a good thing.
We will give you the numbers in this article. But much more importantly, we will point out that the numbers should never be taken in isolation. The "correct" marketing budget is mainly influenced by the specific business situation, the objectives set and the growth aspirations.
Percentage rather than a dollar amount, why?
Marketing is the powerful engine that drives growth in the future. It not only creates demand but also opens up opportunities and eventually leads to revenue.
With the expansion of a business, its revenue goals also increase. This means you will require more leads, more customers, and more demand than earlier. A fixed dollar amount hardly grows in proportion to business growth.With the expansion of a business, its revenue goals also increase. This means you will require more leads, more customers, and more demand than earlier. A fixed dollar amount hardly grows in proportion to business growth.
And the typical figure is…
Deloitte's CMO Survey (May 2025) cites marketing budgets as roughly 9.4% of total company revenues.
Gartner’s CMO Spend Survey 2025 likewise showed an average marketing budget of 7.7% of the sales, which is the same as in 2024 and less than in 2022 when it was 9.4%. Year 2016 to 2020 was the golden era for marketing where about 11% of revenue was spent on marketing. From 2020 onwards, the decline was sharp as marketing was allocated only around 8.2% of revenues but later on, it stabilized in the range of 7–9%.
According to the Deloitte CMO Survey 2025, the differences are huge depending on the type of business:
For B2B product companies it is around 6.4%
For B2C product companies it is approximately 15.5%
For B2B service companies it is around 9.0%
For B2C service companies it is about 12.3%
Industry weighs heavily as well; for instance, consumer packaged goods companies keep on spending more than the rest, as marketing costs make up nearly 18% of their total budgets.
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From Our Discussions, These Conclusions Could Be Drawn.
Economists and business consultants have been recommending, for the past few years, that firms allocate roughly 10% - 13% of their revenue as spending on advertising.
Sometimes, such averages can be misleading. A company can have a 10% average but not spend close to this. There tend to be wide variations here; some companies will be spending as low as 5% and some as high as 15%, with most companies falling right around the middle at about 10%.
So, some might find comparing your advertising budget to just that of the industry standard as questionable exercise. Below average does not mean inefficient and above average does not necessarily mean wasteful.
When does the standard range turn out to be unsuitable for me?
In some situations, industry averages just become quite irrelevant.
The above averages are crossed by fast-growing companies. Sometimes this aspect of growth demands creating a quick demand, which then requires heavy investments in marketing; if that works out well.
In extremely competitive industries, companies have to spend massively on marketing. Competition is investing heavily; some firms may feel the need to do so, if only to safeguard current market shares.
Regular benchmarks are not set up for start-ups. A startup has barely built brand awareness, and it has untried products; it will spend, even at poor sales levels, to survive and be accepted in the marketplace.
Organizations that are undergoing transformations such as the introduction of a new product, entry into a new market, or repositioning of a brand, on average, are likely to exceed their initial budgets. In such times, they require additional visibility and awareness.
In all instances, therefore, the 'average' expenditure does not constitute a restriction, but in fact, very often becomes the starting point.
Impressions from chat:
In the last few years, the recommendation for an advertiser's budget in a business has been 10%-13% of the turnover, according to economists and business consultants.
The averages could be misleading at times. A 10% average can still mean that a company spends considerably less in that regard. It is a wide field. Some prefer spending less than 5% on advertising, while others can spend up to about 15%. In general, most have settled around the average of 10%.
Some would even say that it is pointless to compare one's advertising expenditures to the industry standards: below average does not necessarily signify inefficiency and vice versa.
When Do Those Ranges No Longer Apply To Me?
In some cases, the industry averages just should not apply.
Above average for a growing company means above average. Sometimes that attribute of growth requires building demand fast with investments in marketing-and the opposite can be said if applicable.
Highly competitive industries compel an increase in marketing costs, mainly because competition is spending so much that firms also feel the need to do so in order to sustain their current market shares.
Also, new metrics are not defined by start-ups. A start-up is only beginning to build brand awareness and sell products that are not yet known; it will invest, even at a minimal revenue level, to survive and be accepted in the market.
Most of the time, organizations going through transformation (for example, launching a new product, entering a new market, or repositioning their brand) are more likely to spend beyond what is really considered normal. These are tough times when they need so much visibility and awareness.
So, at any rate,' average' spending will not be a limiting factor but more often a starting point.
Their purchases on marketing budgets really matter.
Increasing or decreasing marketing budgets with ease
Most businesses today need a strong in-house marketing team. A full-time marketing staff guarantees continuity, deep business understanding, and long-term strategic alignment.Agencies, such as Rocket, generally fill a specific gap with performance marketing services, such as SEO in India or PPC Social Advertising. They bring in professional expertise and skill sets on demand.Agencies provide flexibility. As revenue changes, an agency allows businesses to scale up or cut back their marketing investment without that long-term commitment of hiring more full-time staff.This flexibility can be important in times of growth, uncertainty, or change.
That's what great businesses have figured out.
Apple charges a premium for marketing just like any other product will. The trust; the world loves the brand because Amazon never stops infusing it with a great customer experience.GoPro and Red Bull didn't sell products; they sold lifestyles and communities.Those aren't average marketers. They work above average in demand creation, retain the money, and capitalize on it.
Is that even the right question?
What type of business would you be having if your marketing engine gets in more leads or sales than were needed to meet this year's targets?
Will it speed up growth?
Would it increase the price?
Would it lead to a greater focus on its ideal customers?
Would it reinvest profit into new innovations?
Ask yourself first, What would happen if I spent less than my competitors on marketing?
What does it mean if you don't hit your leads or sales targets for that either for your team, for revenue, or in line with any longer-term goals?
Marketing is the spending of money but it also opens doors for the future.
Conclusion
There is nothing simple in defining what should be an "adequate" marketing budget-a number tied to some industry average is far from sufficient; it should be bold relative to competitors, stage of growth, and strategic priorities.
Should you be in need of a team that is ready to help scale your marketing appropriation according to business goals, you can never go wrong giving us a call. We love to talk, so kindly reach us head over to our contact page.
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