“How much should I spend on marketing?” has a benchmark answer and a real answer. The benchmark gives you a starting range; your stage, industry, and goals move you within it. Here is what small businesses actually spend in 2026 — and how to set your own number.
The benchmark: 7–8% of revenue
The U.S. Small Business Administration commonly recommends spending 7% to 8% of revenue on marketing for businesses under $5 million in revenue. Gartner's 2025 CMO survey found marketing budgets across companies averaging around 7.7% of revenue — close to the SBA guideline. That range is the reasonable default if you have no other signal.
Why smaller and growing businesses often spend more
Averages hide the spread. Businesses under $10 million in revenue have been found to allocate a notably higher share — around 15% — because they are still building awareness and cannot coast on an established brand. Growth-stage companies commonly budget 10% to 20% of revenue, while mature businesses settle into the 5% to 10% range. Where you are in your life cycle matters as much as the benchmark.
Industry changes the number a lot
Marketing intensity varies wildly by industry. Consumer-facing categories can spend north of 20% of revenue, while asset-heavy or referral-driven trades spend low single digits. A restaurant, a med spa, and a contractor should not use the same percentage — compare yourself to your industry, not the all-company average.
Spend what's trackable — and fund what's proven
The smartest budget is the one tied to results. Start with a percentage you can sustain, measure what each channel returns, and shift dollars toward what brings paying customers. Once a campaign reliably returns more than it costs, scaling it is one of the safest uses of capital there is — short-term working capital or a line of credit can fund a proven winner faster. The Broker Shop is a broker, not a funder: one application matches you to the funders whose guidelines you meet, free to apply. See marketing on a budget for low-cost tactics.
See what you qualify for
One 2-minute application is matched to the funders whose guidelines you meet. It's free, and checking your options won't affect your credit score.
See What I Qualify For →The bottom line: Start near the SBA's 7–8% of revenue, expect to spend more (10–20%+) if you're small or growing, and adjust for your industry. Track every dollar, then fund only the channels that prove they return more than they cost.
Sources: U.S. Small Business Administration · Gartner — CMO Spend Survey