This guide cuts through the noise with current 2024-2025 data from Gartner, the CMO Survey, and Forrester. We'll cover the benchmarks you actually need, broken down by company size and industry, plus practical guidance on how to allocate that budget for maximum impact. At Whitehat, we've helped hundreds of B2B companies prove their marketing ROI through our work as a HubSpot Diamond Partner—so we know what actually moves the needle.
How Much Should You Spend on Marketing in 2026? UK Benchmarks and Practical Guidance
B2B companies should budget 6-8% of revenue for marketing in 2026, whilst the overall average across all industries sits at 7.7%. This represents a 15% decline from 2023 levels and remains well below the pre-pandemic benchmark of 11%. For UK SMEs specifically, smaller companies need to invest proportionally more—businesses under £10M revenue typically spend 16.8% to compete effectively.
Getting your marketing budget right is one of the most consequential decisions you'll make as a business leader. Spend too little and you'll struggle to generate the leads and brand awareness needed for growth. Spend too much—or spend it poorly—and you're burning cash that could fuel other priorities.
The challenge? Most marketing budget advice online is hopelessly outdated, often citing 2018 data or earlier. The landscape has shifted dramatically since then: budgets have contracted, AI has changed the game, and the relationship between brand building and performance marketing demands a fundamental rethink.
Current Marketing Budget Benchmarks
Marketing budgets have entered what Gartner calls an "era of less." The 2024-2025 CMO Spend Survey—covering nearly 400 CMOs across North America and Europe—reveals that marketing budgets have flatlined at 7.7% of company revenue. This represents a significant 15% drop from 2023's 9.1% and sits well below the pre-pandemic peak of 11% in 2020.
More concerning: 64% of CMOs now report they lack sufficient budget to execute their strategy. Nearly half (48.7%) of companies have actively decreased marketing spending due to inflationary pressures. This isn't a temporary blip—it reflects a structural shift in how businesses view marketing investment.
Marketing Budget by Company Size
Company size dramatically affects the appropriate marketing investment level. Smaller businesses need to invest proportionally more to build awareness and compete against established players with deeper pockets and existing brand equity.
| Company Revenue | Marketing % of Revenue | Context |
|---|---|---|
| Under £10M (SMEs) | 16.8% | Higher investment needed to build market presence |
| £10-25M | 9.6% | Growth-stage investment level |
| £26-99M | 6.7% | Established mid-market |
| £100-499M | 6.5% | Larger mid-market |
| £500M-999M | 5.0% | Upper mid-market |
| £1-9.9B (Enterprise) | 5.7% | Enterprise scale |
| £10B+ (Large Enterprise) | 3.4% | Scale efficiencies and established brand equity |
Source: CMO Survey Fall 2024, Deloitte/Duke University
Marketing Budget by Industry
Industry benchmarks vary significantly based on sales cycle length, customer acquisition dynamics, and competitive intensity. B2B companies consistently spend less than their B2C counterparts—typically 6.1-6.2% versus 10.2-10.4% of revenue.
| Industry | % of Revenue | Source |
|---|---|---|
| B2B Product Companies | 6.1% | CMO Survey Fall 2024 |
| B2B Services | 6.2% | CMO Survey Fall 2024 |
| B2B SaaS (Median) | 8% of ARR | SaaS Capital 2025 |
| B2B SaaS (Equity-backed) | 10-15% | SaaS Capital 2025 |
| Professional Services | 6% | CMO Survey/Sopro 2024 |
| Manufacturing | 5-7% | Multiple sources |
| Technology/Software | 10-15% | Industry analysis |
| Financial Services | 7-10% | Industry benchmarks |
At Whitehat, we work extensively with B2B SaaS, professional services, and life science companies. What we consistently see is that companies underinvesting against these benchmarks struggle to build the predictable lead generation engine they need. The benchmark isn't arbitrary—it reflects what's typically required to maintain visibility and competitive share.
UK Marketing Spend in 2025
The UK advertising and marketing market has shown remarkable resilience. Total UK ad spend grew 10.4% to reach £42.6 billion in 2024, with digital advertising accounting for £35.5 billion—up 13% year-on-year. The 2025 forecast projects further growth to £45.2 billion, a 6.3% increase.
For UK SMEs specifically, the Three Business Ambition Index reported planned collective marketing investment of £35.1 billion in 2024. This represents significant commitment from smaller businesses recognising that marketing investment directly correlates with growth trajectory.
UK-Specific Insight: Digital now represents over 83% of UK ad spend, the highest proportion of any major market. UK businesses investing in SEO and content marketing are well-positioned given this digital-first environment.
How to Allocate Your Marketing Budget
Understanding how much to spend is only half the challenge. How you allocate that budget across channels, activities, and time horizons determines whether your investment generates returns or evaporates.
Recommended B2B Channel Allocation
| Channel/Activity | Recommended % of Budget | Notes |
|---|---|---|
| Content Marketing | 25-33% | Top performers allocate up to 40% |
| Paid Media (Total) | 20-25% | Search, social, display combined |
| SEO/Organic Search | 10-15% | Highest ROI channel (748%) |
| Events/Webinars | 15-20% | 17.1% of offline budgets go here |
| Marketing Technology | 18-22% | CRM, automation, analytics |
| Email Marketing | 5-8% | ROI of £36-40 per £1 spent |
Digital now represents 57.1% of paid media budgets (up from 54.9% in 2023), with search/PPC taking 13.6%, social advertising 12.2%, and digital display 10.7%. For B2B companies, we typically recommend tilting even more heavily toward digital—often 70-80% of media spend.
The Brand vs Performance Split: Getting the Balance Right
Perhaps the most consequential budget decision isn't how much to spend, but how to split that spend between brand building (long-term, emotional, broad-reach) and sales activation (short-term, direct-response, targeted). Get this wrong and you'll either starve future demand or burn cash on campaigns that don't convert.
The Binet and Field 60:40 Rule
Les Binet and Peter Field's landmark research across the IPA Effectiveness Databank established that the optimal marketing budget split is approximately 60% brand building and 40% sales activation. For B2B specifically, their research with LinkedIn suggests a split closer to 50:50—though the principle remains.
The 95:5 Rule: Why Brand Building Matters More Than You Think
Research by Professor John Dawes at the Ehrenberg-Bass Institute, conducted in partnership with LinkedIn, reveals a critical insight:
"Only 5% of B2B buyers are in-market at any given time. The other 95% are out-of-market and won't buy for months or years."
The implications are profound. Most B2B purchase cycles span 4-5 years between decisions. If you're only investing in performance marketing that targets the 5% actively searching, you're ignoring the 95% who will buy in future. When they eventually enter the market, they'll choose the brand they already know and trust—which means your competitors if you haven't invested in brand building.
How AI Is Changing Marketing Budgets in 2026
Artificial intelligence represents the most significant shift in marketing efficiency since the advent of digital advertising. The numbers tell a compelling story:
- 73% of marketers now use or are piloting generative AI (Gartner 2024)
- 72% of B2B content marketers use GenAI for content creation (CMI 2024)
- 40% of companies have hired dedicated AI specialists (HubSpot 2024)
- AI represents 9% of marketing budgets in 2025, up from 7% in 2024
Measurable Benefits CMOs Are Reporting
| Benefit | Impact |
|---|---|
| Lower Marketing Overhead | 8.9% reduction |
| Improved Sales Productivity | 6.6% improvement |
| Increased Customer Satisfaction | 6.3% improvement |
At Whitehat, we've been helping clients integrate AI into their marketing operations through our HubSpot consulting work. The key insight: AI doesn't replace strategy—it amplifies it. Companies that pair AI tools with clear marketing plans see significantly better results than those using AI without strategic direction.
Marketing ROI Benchmarks: What Returns Should You Expect?
Understanding expected returns helps you evaluate whether your marketing investment is working. A good B2B marketing ROI target is 3:1 to 5:1—meaning you earn £3-5 for every £1 spent. The average B2B marketing ROI sits around 5:1.
ROI by Marketing Channel
| Channel | Average ROI | Notes |
|---|---|---|
| SEO/Organic | 748% (7.48:1) | Highest ROI channel |
| Email Marketing | 261%-3600% | £36-40 per £1 invested |
| Content Marketing | 700%+ | Long-term compounding returns |
| PPC/Paid Ads | 36% | Quick but lower returns |
The data makes a compelling case for investing in SEO and content marketing. These channels deliver the highest returns but require patience—results compound over time rather than appearing immediately.
LTV:CAC Ratio Targets
The ratio of Customer Lifetime Value to Customer Acquisition Cost is a critical efficiency metric:
- Under 2:1: Unsustainable—you're spending too much to acquire customers
- 2:1 to 3:1: Needs improvement; acceptable for early-stage companies
- 3:1: Healthy baseline for financial viability
- 4:1: Optimal for B2B SaaS; recommended target
- 5:1+: Highly efficient—may actually signal underinvestment in growth
Frequently Asked Questions
What percentage of revenue should a B2B company spend on marketing in 2026?
B2B companies should budget 6-8% of revenue for marketing in 2026, according to the CMO Survey and Forrester research. High-growth B2B SaaS companies may invest 10-15% of ARR, whilst bootstrapped firms typically spend 5-8%. The overall average across all industries is 7.7% of revenue. Smaller companies (under £10M revenue) typically need to invest proportionally more—around 16.8%—to build market awareness.
How should I split my marketing budget between brand building and performance marketing?
For B2B companies, research by Binet and Field suggests a 50:50 split between brand building and sales activation. However, most B2B marketers currently spend 68.8% on short-term performance and only 31.2% on long-term brand building—significantly underinvesting in brand. The 95:5 rule reminds us that only 5% of buyers are in-market at any time, making brand building essential for capturing the 95% who'll buy later.
What is a good marketing ROI for B2B companies?
A good B2B marketing ROI target is 3:1 to 5:1, meaning you earn £3-5 for every £1 spent. SEO delivers the highest returns at approximately 748% ROI, followed by email marketing at 261-3600% and content marketing at 700%+. PPC delivers quicker but lower returns at around 36%. The key is balancing channels that deliver immediate leads (PPC) with those that compound over time (SEO, content).
How much do UK SMEs spend on marketing?
UK SMEs with under £10M revenue typically invest 16.8% of revenue on marketing—significantly higher than larger companies who benefit from existing brand equity and scale efficiencies. UK SMEs collectively planned £35.1 billion in marketing investment for 2024, with total UK ad spend reaching £42.6 billion. Digital represents over 83% of UK advertising spend.
How is AI changing marketing budgets in 2026?
73% of marketers now use or are piloting generative AI, with AI representing 9% of marketing budgets in 2026 (up from 7% in 2024). AI is delivering 8.9% reduction in marketing overhead and 6.6% improvement in sales productivity. 22% of CMOs report reduced reliance on external agencies due to AI capabilities. Within three years, 34.5% of marketing time is expected to involve AI and machine learning.
Getting Your Marketing Budget Right: Next Steps
The data is clear: marketing budgets have contracted to 7.7% of revenue on average, but the companies that maintain or increase investment during downturns emerge stronger. The key isn't just spending more—it's spending smarter, with the right balance between brand building and performance marketing, and increasingly with AI-augmented execution.
At Whitehat, we help B2B companies prove their marketing ROI and make every pound work harder. As a HubSpot Diamond Partner, we've built our reputation on connecting marketing activity to business outcomes—the attribution clarity that 64% of CMOs say they need but can't achieve.
Ready to Make Your Marketing Budget Work Harder?
Book a free consultation to discuss your marketing strategy, budget allocation, and how we can help you prove ROI.
Let's Have a ChatReferences and Sources
- Gartner (2024). CMO Spend Survey Reveals Marketing Budgets Have Dropped to 7.7% of Revenue. gartner.com
- Gartner (2025). 2025 CMO Spend Survey: Marketing Budgets Flatline at 7%. gartner.com
- Deloitte/Duke University (2024). The CMO Survey Fall 2024: Highlights and Insights Report. cmosurvey.org
- Forrester (2024). The Average B2B Firm Invests 8% of Revenue in Marketing. forrester.com
- SaaS Capital (2025). Spending Benchmarks for Private B2B SaaS Companies. saas-capital.com
- LinkedIn B2B Institute (2024). 2030 B2B Trends: The 95:5 Rule. business.linkedin.com
- IPA (2024). Effectiveness Research: Binet and Field. ipa.co.uk
- Marketing Week (2024). UK Ad Spend Growth 2024. marketingweek.com
- First Page Sage (2025). Average Customer Acquisition Cost by Industry. firstpagesage.com
Related Reading
- How to Create a Marketing Plan Step-by-step guide to building your marketing strategy
- Marketing Attribution That Works Prove your marketing ROI with proper attribution
- 5 Ways to Optimise Your Digital Marketing Budget Practical tips for getting more from your spend
- Artificial Intelligence in Marketing How AI is transforming marketing efficiency