Every small business owner wrestles with the same question: How much should I really be spending on marketing?
Spend too little and you risk getting buried by competitors. Spend too much without a strategy and you burn cash without seeing results.
The good news is there are industry benchmarks that can help guide your decision, and we are going to break them down so you can create a realistic plan for 2026.
Industry Benchmarks for 2026
Most small businesses spend between 7 and 12 percent of their revenue on marketing, depending on their size, industry, and growth goals.
- Service-based businesses often spend on the higher end because they rely heavily on visibility and trust.
- Product-based businesses sometimes get by with less since repeat customers and word of mouth play a larger role.
- Startups and high-growth businesses may need to invest closer to 15 percent in the short term to establish a presence and compete.
The Real Cost of “Free” Marketing
Many business owners try to save money by handling marketing themselves or piecing things together when they can. The reality is this approach often costs more than it saves. Lost opportunities, inconsistent branding, and lack of visibility can quietly drain thousands of dollars each year.
Think of marketing as an investment rather than an expense. Done right, it brings in revenue instead of eating into it.
How to Allocate Your Marketing Budget
Once you know how much you can spend, the next step is figuring out where it should go. A simple breakdown for 2026 might look like this:
(Google Ads, Meta, LinkedIn, retargeting campaigns)
(blogs, social media, video, design assets)
And SEO
(print, local events, signage)
(scheduling software, email platforms, reporting dashboards)
This is a starting point. Your actual mix should be shaped by your industry, your goals, and where your customers spend time.
Looking Ahead: Budget Planning in Practice

