It is one of the most common questions business leaders ask, and one of the easiest to answer badly. A percentage of turnover can be a useful benchmark, but it should never become a marketing budget simply because another business spends the same amount.
There is no reliable percentage of turnover that every UK business should spend on marketing. The IPA Bellwether Report gives a more useful picture of how UK marketing budgets are moving. In Q2 2026, 23.8% of respondents increased their marketing spend, 16.9% reduced it and 59.4% left budgets unchanged. The research, based on a panel of around 300 UK marketing professionals primarily from the nation’s top 1,000 companies, is useful context rather than a rule for an individual business.
The right marketing budget depends on what the business is trying to achieve, how quickly it wants to achieve it, what already exists and how effectively current investment is being used.
Start with the commercial objective, not the percentage
A business entering a new market may need to invest heavily in awareness, research, positioning, content and lead generation before sales begin to follow. A mature business with strong recurring revenue may need less acquisition activity and more investment in customer retention, reputation and protecting market position, whilst a company launching a new service will have a different requirement again.
This is why the budget conversation should begin with the commercial plan. What are you trying to grow? Which customers do you want more of? Is the priority revenue, margin, market share, retention, recruitment, reputation or something else? How quickly does the business expect marketing to contribute?
Once those questions are clear, it becomes much easier to decide what marketing needs to do and what resources are required.
Before spending more, audit what you already own
Businesses can be quick to assume that better marketing requires more money. Sometimes it does, but not always… There may already be value sitting inside the business.
A website with useful pages that are difficult to find. A CRM containing customers who have not heard from the company for months. Strong case studies that have never been turned into sales content. Videos that were used once. An email list that is barely touched. An exhibition database that never received a proper follow up sequence.
Before increasing spend, ask whether existing assets are doing enough. This is particularly important when budgets are under pressure. The IPA Bellwether Report found that 59.4% of respondents left their marketing budgets unchanged in Q2 2026. That makes getting more from existing investment increasingly important. The response should not automatically be to spend more or do less. It should be to become much clearer about what deserves investment.
Measure marketing against the job it was given
One reason marketing budgets become difficult to defend is that activity is often measured without reference to the original objective.
A brand campaign should not be judged solely on immediate enquiries. A lead generation campaign should not hide behind impressions if it produces no useful leads. An event should not be considered successful simply because the room looked busy.
Before the campaign starts, define the result. That might be qualified enquiries, sales conversations, website conversions, applications, ticket sales, customer retention, search visibility or movement within a specific target market.
Then decide what evidence will tell you whether the investment worked. Not every marketing activity produces a perfectly attributable return, particularly in longer B2B buying cycles, but that does not remove the need for measurement. It simply means businesses need a sensible combination of commercial and marketing indicators.
Do not confuse a marketing budget with an activity budget
A marketing budget is not simply the amount available for advertising, social media and print. It may also need to cover people, technology, website development, content production, research, events, creative work, data, PR and specialist support.
That is why businesses should think about capability as well as channels. Would employing another person create the best return, or would external expertise provide more flexibility? Does the internal team need more resource, better tools or clearer strategic direction? Is a specialist required temporarily for a website project rather than permanently on payroll?
The strongest budget is the one built around what the business actually needs, not around the structure it has always had.
A better question than ‘what percentage should we spend?’
Instead of asking for a universal percentage, ask what marketing needs to make happen over the next 12 months and what it will realistically cost to do that well. Then look at affordability, expected value, capacity and risk.
Some businesses will need to invest ahead of growth. Others will discover they are already spending enough but spreading the budget across too many disconnected activities. There is no prize for having the biggest marketing budget. There is value in having one that is deliberate, measurable and connected to the commercial plan.
Frequently asked questions
What percentage of revenue should be spent on marketing?
There is no universal percentage that suits every business. Industry, growth ambitions, margins, market maturity and existing brand strength all affect the answer. External benchmarks can provide context, but the budget should be built around the business objective.
How do you know if a marketing budget is working?
Set the objective before spending and identify the measures that relate directly to it. Depending on the activity, this could include qualified enquiries, conversion, revenue, retention, search visibility, applications or event sales.
Should a small business increase its marketing budget to grow?
Possibly, but increasing spend should follow an audit of current activity. A business may be able to improve results by using existing content, customer data, website assets and follow up processes more effectively before adding budget.
Vantage Marketing Group works with UK businesses ready to move from reactive to strategic.
If you’d like to talk about your marketing strategy, or you’d like us to talk to your marketing team about it, get in touch today:
info@vantagemarketinggroup.co.uk