The U.S. Small Business Administration (SBA) suggests that businesses allocate 8-12% of their total revenue towards marketing, which is effective for maintaining visibility and customer acquisition. While startups may lean toward the top end of this range to build brand awareness, established businesses typically require less. The average marketing expenditure across U.S. companies is about 9%, influenced by industry practices and specific business objectives. It is crucial for businesses to fine-tune their marketing budgets to optimize return on investment and tailor strategies according to their unique circumstances.
Investing 8-12% of total revenue in marketing is a solid rule of thumb according to the U.S. Small Business Administration (SBA). Companies aiming for rapid growth may surpass this range, with leading brands like Hims & Hers and Expedia reportedly allocating close to 50% of their revenue to marketing efforts.
The average marketing spend in the U.S. hovers around 9% of revenue. This number varies widely based on industry, growth ambitions, and business model.
The SBA recommends spending 8-12% of revenue on marketing to maintain visibility, customer acquisition, and competitive edge. This range supports consistent lead generation and brand awareness.
Startups often lean toward the top end (10-12%) of the SBA guideline while established companies can sometimes achieve results with 6-8%. Fine-tuning budget strategies is essential.
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