One of the most common questions business owners ask is how much they should invest in marketing. The answer depends on your industry, growth goals, and current revenue—but there are proven benchmarks to guide your decision.
Industry Benchmarks
The U.S. Small Business Administration recommends spending 7-8% of gross revenue on marketing for businesses making less than $5 million. Companies focused on aggressive growth often invest 10-20% of revenue. Here’s how it breaks down by industry:
- Professional Services (Law, Accounting): 6-10% of revenue
- Healthcare/Medical: 8-12% of revenue
- Home Services (HVAC, Plumbing, Roofing): 8-15% of revenue
- Restaurants & Hospitality: 3-6% of revenue
- Ecommerce: 10-20% of revenue
- Real Estate: 10-15% of GCI
- SaaS/Tech: 15-25% of revenue
Where to Allocate Your Budget
For businesses spending $3K-5K/month:
- Google Ads: 40-50%
- SEO & Content: 20-30%
- Social Media: 10-20%
- Website Maintenance: 5-10%
For businesses spending $10K+/month:
- Google Ads: 30-40%
- SEO & Content: 20-25%
- Social Media & Paid Social: 15-20%
- Email Marketing: 5-10%
- Creative & Branding: 10-15%
The ROI Perspective
Don’t think of marketing as an expense—think of it as an investment. A well-run Google Ads campaign typically returns $2-8 for every $1 spent. SEO can deliver 5-12x returns over 12 months. The question isn’t whether you can afford to market—it’s whether you can afford not to.
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