New and old businesses alike often wonder how much of their overall budget should be spent on marketing. In 2019, more than $103 billion will be spent on search engine marketing, social media marketing, display advertising, and email marketing. However, most businesses do not have million of dollars to invest in digital marketing. So, just how much of your budget should you spend in this area?
The amount you should spend on marketing depends not only on the size of your business, but your industry and business goals as well. In general, businesses that are around one to five years old should use about 12 to 20 percent of their revenue on marketing. Businesses that have been around for more than five years should use about 6 to 12 percent of their revenue on marketing.