How Much Does the Average Small Business Spend on Marketing?

However, the question remains: how much of your limited resources should be devoted to marketing? While every company is different, knowing what the typical marketing expenditures of a small business are can help you develop a successful plan for your own company.

Small businesses with less than $5 million in revenue spend between 7% and 8% of their gross revenue on marketing, per a recent SBA survey. A company with $100,000 in annual revenue, for instance, would allocate between $7,500 and $8,000.

However, this is only a rough estimate; the actual sum you should allocate to advertising will depend on factors like your specific business, audience, and objectives.

Marketing may require a larger share of your startup’s budget in order to create brand awareness and gain initial customers. However, if your company already has a stable clientele, you may be able to reduce your marketing budget.

Also, remember that marketing encompasses more than just ads. There are many different aspects to it, such as social media marketing, content marketing, email marketing, and SEO. Your marketing budget’s distribution among various channels should be tailored to your specific objectives.

Keeping tabs on both your marketing expenditures and their outcomes is crucial if you want to get the most out of your money. The success of your marketing efforts can be gauged by establishing and tracking specific goals. Through this method, you will be able to make better budgetary decisions and allocate resources.

In conclusion, small businesses typically allocate between 7 and 8% of their gross revenue to marketing, but this figure can (and should) vary widely depending on factors such as the nature of the business, its size, the demographics of its customer base, and the objectives it hopes to achieve. You can get the most out of your budget if you keep careful tabs on your spending and evaluate your outcomes regularly.

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