The most common question UK business owners ask about marketing is “how much should I spend?” The standard 5-10% of revenue answer is misleading without context.
The Rule of Thumb (and Why It Misleads)
The 5-10% benchmark comes from aggregate data across all industries. A VC-backed SaaS company might spend 40%. An established services firm might spend 3%. Both can be correct.
Budget by Revenue Band
Pre-revenue/early stage: 15-25% of projected revenue. 100K-500K range: 8-15%. 500K-2M: 6-10%. Above 2M: 4-8%. These assume growth mode.
Budget by Sector
B2C with short sales cycles (e-commerce, hospitality): 8-15%. B2B with longer cycles (consulting, SaaS): 4-8% but higher absolute amounts per customer.
What to Spend It On
A balanced 2026 mix: 30-40% digital advertising, 15-20% content and SEO, 10-15% website, 10-15% email/CRM, 10-20% agency fees. See our Marketing Benchmarks UK 2026 report for channel performance data.
Common Overspend Traps
- Spreading too thin. Better to dominate one channel than be mediocre on five.
- Chasing vanity metrics. Impressions do not pay bills.
- Not tracking CAC by channel. See our CAC vs LTV guide.
- Annual budgets with no mid-year review. Review quarterly minimum.
Frequently Asked Questions
Is 5% of revenue enough?
For maintenance mode, possibly. For growth, most UK SMEs need 7-12%.
Should I include staff costs?
Yes. Marketing team fully loaded cost is part of your marketing investment.
