2026 B2B Marketing Budgets: How Much Should You Invest

B2B marketing budgets have stabilised at 7.7% of revenue—below pre-pandemic levels of 9.5%—yet 79% of marketers expect increases in 2026 as AI drives efficiency gains. According to Whitehat SEO's analysis of leading industry benchmarks, UK companies targeting growth should invest 8–12% of revenue while prioritising SEO, LinkedIn, and AI-enhanced content creation—the channels delivering the strongest returns for B2B organisations.

For mid-market B2B companies—those with 50 to 500 employees—this creates a pivotal opportunity. Static budgets combined with AI-powered productivity mean the winners will be those who allocate smarter, not necessarily bigger. As a HubSpot Diamond Partner working with B2B companies across the UK, Whitehat SEO sees these trends playing out in real time across our client base.

The 7.7% benchmark: what Gartner's CMO Spend Survey reveals

The 2025 Gartner CMO Spend Survey, conducted among 402 CMOs across North America, UK, and Europe, establishes the benchmark at 7.7% of revenue—flat from 2024 and well below the 9.5% recorded just three years prior. Half of CMOs report budgets of 6% or less, while 'big spenders' exceed 10.5%. Most critically, 59% of CMOs report insufficient budget to execute their 2025 strategy.

The Deloitte/Duke University CMO Survey reveals meaningful variation by business type:

Budget allocation in 2025 breaks down as: paid media at 30.6% (the only growing segment), martech at 22.4%, labour at 21.9%, and agencies at 20.7%. Digital channels now account for 61.1% of total spend—the highest since Gartner began tracking in 2013.

Looking ahead, 79.2% of marketing teams expect at least a slight budget increase in 2026, according to the HubSpot State of Marketing report, with 21.2% expecting significant increases. Mid-sized companies expect larger increases than both enterprise and SMBs—a finding that aligns with what Whitehat SEO observes among our B2B marketing services clients.

UK-specific benchmarks: cautious recovery ahead

The IPA Bellwether Report (Q4 2025) shows UK marketing budgets at a 0.0% net balance—flat—after earlier volatility including Q1 2025's first decline in four years (-4.8%). However, recovery is expected: the 2026/27 outlook indicates 'shallow expansion' with adspend growth forecast at 1.6% for 2026 and 2.1% for 2027/28.

UK total advertising spend reached £46 billion in 2025 (+8.2% year-on-year), with forecasts projecting £49.1 billion for 2026 (+6.6%). For UK B2B companies specifically, industry estimates suggest spending £3,000–£8,000 per month for consistent results, translating to 7–12% of annual revenue for marketing, with high-growth companies at 12–15%.

This aligns with the pricing transparency Whitehat SEO maintains: SEO services retainers typically range from £2,000–£10,000 per month depending on scope, with project work from £5,000–£75,000. The key is ensuring every pound connects to pipeline, not vanity metrics.

AI marketing investment: the 9% that's changing everything

AI now represents 9% of total marketing budgets in 2025, up from 7% in 2024, with 59.32% of marketers planning to increase AI spending into 2026. Top performers allocate 10–15% of their martech budgets specifically to AI-powered tools. The global AI spend for sales and marketing reached $57.99 billion in 2025, with generative AI investment alone hitting $37 billion—a 3.2x increase from $11.5 billion in 2024.

ROI data validates the investment

The evidence for AI marketing ROI is compelling across multiple studies. McKinsey's 2025 Global AI Survey reports 10–20% higher ROI for companies using AI in sales and marketing. Teams using AI achieve 44% higher productivity, saving approximately 11 hours per week. Content creation is 5x faster compared to manual methods.

However, only 49% of marketers currently measure ROI of their AI investments—a significant gap that will likely close as budgets face increased scrutiny. This is where AI consultancy becomes critical: implementing AI without measurement frameworks wastes the productivity gains.

HubSpot's Breeze AI: what it costs in practice

HubSpot's Breeze AI features require Professional or Enterprise subscriptions (Marketing Hub Professional starts at $800/month) and use a credit-based system. Credit packs range from $45/month (5,000 credits) to $900/month (100,000 credits), with Professional plans including 5,000 credits. Mandatory onboarding adds $3,000 for Professional and $7,000 for Enterprise tiers.

As a HubSpot Diamond Partner, Whitehat SEO helps clients navigate these costs strategically—ensuring AI credits deliver measurable value rather than becoming another underutilised platform feature.

The 50/50 split: why Binet and Field updated their B2B guidance

Les Binet and Peter Field's research, commissioned by the LinkedIn B2B Institute, produced a significant update for B2B marketers. While the original B2C recommendation of 60% brand building/40% activation remains valid for consumer markets, B2B companies should target a 50/50 split between brand and activation.

This adjustment reflects the 95:5 rule from the Ehrenberg-Bass Institute: only 5% of B2B buyers are in-market at any given time, making brand building essential for capturing the 95% who will buy in the future. The LinkedIn B2B Institute's '5 Principles of Growth' emphasises that fame strategies prove 12x more effective than rational product claims.

Context determines the optimal balance

WARC's 2024 analysis reinforces the importance of brand investment: brands with high awareness achieve conversion rates 2.5x higher than unknown competitors, while strong brands reduce customer acquisition costs by 30–50%. The cautionary tales of Adidas and Nike—both of which over-invested in performance marketing and saw diminishing returns—underscore the risks of neglecting brand building.

Channel ROI benchmarks: where to allocate in 2026

Digital channels now command 70–72% of total marketing spend, with clear winners emerging from ROI analysis. Whitehat SEO's work with B2B clients consistently validates these benchmarks:

LinkedIn has become the dominant B2B paid channel, growing from 31% of B2B ad budgets in H1 2024 to 39% by year-end. While LinkedIn's median CPC of $3.94 and CPL of $60–$150 (enterprise at $200+) exceed other platforms, lead quality justifies the premium: LinkedIn MQL-to-SQL conversion rates reach 14–18%, double Google's 7–12%.

For optimal B2B paid media allocation in 2026, the data suggests: Google Ads at 35–45%, LinkedIn at 25–35%, Microsoft Bing at 15–20%, and Meta at 5–10%. Whitehat SEO's PPC management services typically improve ROAS by 25–40% within the first quarter by applying this channel mix strategically.

Content marketing priorities for 2026

The Content Marketing Institute's B2B trends research reveals where marketers plan to increase investment:

• Video content: 61% planning increase
• Thought leadership content: 52% planning increase
• AI for content optimisation: 40% planning increase
• AI for content creation: 39% planning increase
• Paid advertising: 38% planning increase
• Webinars: 27% planning increase

Overall, 45% of B2B marketers rank AI-powered marketing tools as their top investment priority for 2026, followed by events/experiential marketing at 33% and owned media (content, website, blog, email) at 32%.

This is where Answer Engine Optimisation (AEO) becomes critical. With over 50% of B2B buyers now using AI to research purchases before visiting vendor websites, content must be structured for AI citation, not just traditional search rankings. Whitehat SEO's AEO services help brands appear when prospects ask ChatGPT, Perplexity, or Google AI Overviews for recommendations.

Industry-specific benchmarks: B2B SaaS leads on spend intensity

Marketing budget requirements differ substantially across sectors. Here's what the data shows for B2B SaaS companies specifically:

Product-led growth companies spend 13% of revenue on marketing versus 9% for sales-led organisations. Venture-backed SaaS companies spend approximately 58% more on marketing than bootstrapped peers.

Professional services firms average 7% of revenue, with high-earning enterprises reaching 15%. Healthcare marketing budgets depend heavily on growth objectives: 1–5% for maintaining current growth, 8–12% for aggressive growth, and pharmaceutical companies at 18–21%.

Manufacturing and industrial B2B companies typically invest 5–7% of annual revenue, with 50–70% of that spend now flowing to digital channels. A £25M revenue manufacturer at 6% would invest approximately £1,500,000 annually in marketing.

Budget methodology: combining top-down and bottom-up approaches

Experts recommend a hybrid methodology for 2025–2026: use percentage-of-revenue as a top-down cap, then apply goals-based funnel math for bottom-up channel allocation.

The four primary approaches

Percentage of revenue method remains most common, with recommended ranges: conservative/maintenance at 5–7%, moderate growth at 10%, aggressive growth at 15–20%+, and startup/high-growth at up to 30%.

Objective-based budgeting works backward from revenue targets: Define revenue goal → Calculate pipeline needed (revenue ÷ close rate) → Determine lead requirements → Multiply by cost per lead. Example: £10M target requiring 16,667 MQLs at £150/MQL equals a £2.5M marketing budget.

CAC-based budgeting targets an LTV:CAC ratio of 3:1 or 4:1, with marketing typically representing 35–45% of total CAC. Benchmarkit's 2025 data shows companies under £20M ARR spend £1.03 in marketing per £1 of new ARR, while £50M+ companies achieve greater efficiency at £0.50 per £1.

Competitive parity benchmarks against industry averages, typically targeting 30–50% of new and expansion revenue for combined sales and marketing.

Mid-market specifics (50–500 employees)

Companies with 50–500 employees often face 'budget constraint with enterprise complexity'. These mid-market organisations should budget: growth-focused at 8–12% of revenue, stable operations at 6–8%, and efficiency-focused at 5–7%. CAC ranges from £5,000–£50,000+ for mid-market deals versus £1,000–£5,000 for SMB, with sales cycles extending to 4–12 months.

Strategic imperatives for 2026: what Whitehat SEO recommends

The data reveals a market in transition. While headline budgets remain constrained at 7.7% of revenue, the reallocation toward digital channels (61.1%), AI tools (9% and growing), and high-ROI channels like SEO and LinkedIn signals where competitive advantage lies.

For UK mid-market B2B companies targeting growth, Whitehat SEO's analysis points to three strategic priorities:

The companies that will win in 2026 aren't necessarily those spending the most—they're those deploying AI-enhanced efficiency across high-ROI channels while maintaining the brand investment that makes all downstream marketing more effective.

Ready to build a marketing strategy that delivers measurable ROI? Book a discovery call with Whitehat SEO to discuss how these benchmarks apply to your business.

Frequently Asked Questions

What percentage of revenue should B2B companies spend on marketing in 2026?

The average B2B marketing budget sits at 7.7% of revenue, but growth-focused companies should target 8–12%. B2B services companies average 9%, while B2B products average 6.4%. The right percentage depends on your growth objectives, competitive landscape, and company stage.

How much should B2B companies invest in AI marketing tools?

Companies currently allocate 9% of total marketing budgets to AI tools, with top performers investing 10–15% of their martech budget specifically in AI. ROI data shows 10–20% higher returns for companies using AI in marketing, with productivity gains of approximately 44%.

What is the optimal brand versus activation split for B2B marketing?

Binet and Field's research recommends a 50/50 split between brand building and sales activation for B2B companies. This differs from the original 60/40 B2C guidance. Early-stage companies should skew toward activation (80–90%), while mature companies can invest more in brand (up to 60%).

Which marketing channels deliver the highest ROI for B2B companies?

SEO delivers the highest ROI at 748%, followed by email marketing at 261% and webinars at 213%. LinkedIn Ads achieve 113% ROAS with superior lead quality—MQL-to-SQL conversion rates of 14–18% versus Google's 7–12%. The optimal paid media mix allocates 35–45% to Google Ads and 25–35% to LinkedIn.

How much should UK B2B companies spend on marketing monthly?

UK B2B companies should budget £3,000–£8,000 per month for consistent marketing results, translating to 7–12% of annual revenue. High-growth companies invest 12–15%. Mid-market organisations (50–500 employees) face particular budget challenges and should target 8–12% if growth-focused.

References and Sources

• Gartner 2025 CMO Spend Survey – Marketing budget benchmarks and allocation data
• HubSpot State of Marketing 2025 – Budget expectations and AI investment trends
• LinkedIn B2B Institute: 5 Principles of Growth – Binet and Field's B2B effectiveness research
• The Drum: Binet and Field B2B Research – 50/50 brand and activation split analysis
• HubSpot State of Marketing Report 2025 – Full marketing trends and data