How Much Should You Spend on B2B Marketing in 2025?
"What should our marketing budget be?" is one of the most common questions we hear from B2B leaders.
The short answer: it depends on your growth stage, market, and goals.
The longer answer: here's how to think about it strategically.
The B2B Marketing Budget Ranges
Early Stage (Under $2M revenue): 12-20% of revenue- You're still figuring out product-market fit
- Need to test multiple channels and messages
- Higher spend required for market education
Growth Stage ($2M-$10M revenue): 8-15% of revenue- You know what works, need to scale it
- Can optimize spend based on proven channels
- Focus shifts from testing to scaling
Established ($10M+ revenue): 6-12% of revenue- Proven playbook, focus on efficiency
- Brand building becomes more important
- Can afford longer-term investments
But Budget Isn't Everything
We've seen companies waste 20% of revenue on unfocused marketing and others grow rapidly with 5% spent strategically.
What matters more than percentage:- How well you understand your customers
- How effectively you measure results
- How quickly you adjust when something isn't working
How to Determine Your Right Budget
Step 1: Calculate Your Customer Lifetime Value (CLV)
If your average customer is worth $50,000 over their lifetime, you can afford to spend more to acquire them than if they're worth $5,000.
Step 2: Research Your Customer Acquisition Cost (CAC)
Look at your best customers: How much did it cost to acquire them through marketing?
Step 3: Apply the CAC:CLV Ratio
- **SaaS companies**: Aim for 3:1 or 4:1 ratio
- **Service companies**: 5:1 or 6:1 ratio
- **Product companies**: 3:1 or higher
Step 4: Factor in Your Growth Goals
Want to double revenue in 2 years? You'll likely need to invest more upfront.
Where to Allocate Your Budget
40-50% Testing & Acquisition- Paid advertising across channels
- Content creation and SEO
- Lead generation tools and systems
30-40% Operations & Tools- Marketing technology stack
- Analytics and reporting tools
- Team salaries and contractor costs
10-20% Brand & Long-term- Brand development and design
- Thought leadership content
- Conference and event participation
Common Budget Mistakes
Mistake 1: Copying CompetitorsJust because a competitor spends 15% doesn't mean you should. Your business model, margins, and goals are different.
Mistake 2: Set-and-Forget BudgetingMarkets change, performance varies. Review and adjust quarterly based on results.
Mistake 3: Focusing Only on PercentageA $100K budget spent strategically beats $200K scattered across too many tactics.
Getting More from Your Current Budget
Before increasing spend, optimize what you have:
The Bottom Line
Your marketing budget should be based on:
- What you can afford (cash flow)
- What you can measure (attribution)
- What you can optimize (continuous improvement)
Start with what's sustainable, measure everything, and increase investment in what's proven to work.
*Need help optimizing your marketing budget allocation? Let's analyze your current spend and identify opportunities.*