How Do I Set a Marketing Budget for My Business?
If you're a small or medium-sized business owner wondering how much you should spend on marketing, you're not alone. One of the most common questions we hear is: How do I set a marketing budget that makes sense for my business goals and revenue? The answer depends on several factors, but with a few guiding principles and tools, you can build a smart, scalable marketing plan.
At Momentum Marketing, we help service-based businesses like contractors, roofers, pest control companies, and local professionals make strategic decisions around budget and marketing performance. This guide walks through how to calculate a marketing budget and make it work for your growth goals.
Why Your Marketing Budget Matters
Your marketing budget isn’t just a number; it’s what fuels your brand visibility, lead generation, and long-term growth. Without a defined budget, businesses often:
- Underinvest and limit their growth potential
- Overspend without clear tracking or ROI
- Skip essential channels like SEO, paid ads, or Local Service Ads
Creating a marketing budget helps you plan, prioritize, and scale with intention.
General Rule of Thumb for How Much You Should Spend on Marketing
A commonly used benchmark is to allocate 7-12% of your gross revenue toward marketing. The SBA (Small Business Administration) recommends:
- 7-8% for businesses with steady revenue and growth
- 10-12% (or more) for businesses in growth mode or launching new services
This number should include:
- Website design and maintenance
- SEO and content marketing
- Paid advertising (Google Ads, LSAs, social ads)
- Branding and creative assets
- Marketing software and tools
Try Our Free Marketing Budget Calculator
To get a quick estimate based on your revenue and growth goals, try our Marketing Budget Calculator. It allows you to adjust revenue and percentage targets and gives you a clear recommendation.
The Small Business Administration recommends most companies allocate 7-8% of revenue to their marketing budget, and at least 10-12% for greater growth or when launching new services. Do you need help? Get in touch.
get startedWhat Should Be Included in Your Marketing Budget?
Your budget will depend on your business size, goals, and industry, but here are the most important marketing services to consider:
1. Custom Website Design
Your website is your marketing foundation. Whether you're launching or redesigning, budget for:
- Strategy and branding
- Design and development
- Mobile optimization and performance
2. Search Engine Optimization (SEO)
SEO helps your website rank organically for local and service-based searches. Costs can include:
- On-page SEO and content optimization
- Local SEO and GBP management
- Link building and technical improvements
3. Google Ads & Paid Advertising
Paid ads help drive immediate traffic. Your budget should include:
- Monthly ad spend (PPC)
- Ad management and optimization fees
- Landing page development
4. Google Local Service Ads (LSAs)
LSAs are cost-effective for local leads. Budget for:
- Pay-per-lead costs (varies by industry)
- Setup and ongoing management
5. Social Media & Email Marketing
Stay top of mind and build trust through:
- Regular social media posting
- Paid social campaigns
- Email campaigns and automation tools
6. Marketing Dashboard & Tools
Use data to make smarter decisions. Budget for:
- Reporting dashboards
- Lead tracking and analytics
- CRM tools
How to Choose the Right Budget for Your Business
Choosing a marketing budget requires more than just plugging in a percentage. Here’s how to approach it strategically:
- Define Your Growth Goals – Are you focused on maintaining your current client base, entering a new market, or launching a new service? Your growth goals should shape the level of investment you make. Businesses looking to scale aggressively should allocate a higher percentage of revenue to marketing.
- Review Historical Spend and ROI – Look at what you’ve spent in the past, what worked, and what didn’t. Were your previous SEO or paid ad efforts delivering qualified leads? Use this data to refine your priorities.
- Analyze Your Industry and Competition – In competitive industries like roofing or pest control, it’s essential to stay visible in search results. Research your competitors’ online presence and advertising activity to ensure you're not falling behind.
- Prioritize High-Impact Services – If your budget is limited, start with the essentials. A strong website and foundational local SEO should come before advanced ad strategies. From there, you can layer in paid ads, LSAs, and email marketing as your budget allows.
- Track Performance and Adjust Monthly – Marketing isn’t set-it-and-forget-it. Use tools like our Marketing Dashboard to track leads, ad performance, and conversion rates. Adjust your budget allocation each month based on what’s driving results.
- Use Your Website as a Conversion Engine – A budget spent on ads will be wasted if your site isn’t built to convert. Before increasing spend, ensure your website design, mobile experience, and calls-to-action are in place. Learn more about conversion-focused web design.
We Can Help You Build a Marketing Strategy That Fits Your Budget
At Momentum Marketing, we don’t believe in cookie-cutter packages. We’ll help you evaluate your business needs, goals, and revenue to build a realistic, effective marketing plan.
Ready to see what your budget could look like?
- Use our free calculator
- Explore our full list of services
- Contact us today or call (207) 813-4735
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