Setting a Marketing Budget

Melanie Jayjack • December 3, 2024

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No matter the size of your business, developing marketing budgets can feel daunting and it's that time of year where it can't be avoided. Coming up with a plan for 2025 can be a challenge—how much is too much, and where should you even start? At Graphic Haven, we’re here to help you make informed decisions and build a budget that drives growth without breaking the bank.

1. Identify Your Business Stage

The amount you allocate for marketing depends heavily on where your business stands in its lifecycle. If you've been in business a long time, you are likely to have more recognition in your space and can taper down your advertising spend. Whereas, if you're a budding company or experiencing steady grow you may need to invest more. Here’s a simple breakdown we recommend:

  • Startup Stage: Focus on building awareness and attracting your first customers. A smaller budget, about 5-15% of revenue, often works well.

  • Growth Stage: As your business gains momentum, increase your investment to fuel expansion. Plan to allocate 10-20% of your revenue.

  • Mature Stage: With a stable customer base, prioritize maintaining loyalty and exploring new markets. A 5-10% budget is typically sufficient.

2. B2B vs. B2C Marketing

The type of your business will also determine how you are spending your marketing budget. Your target audience and sales cycle play a crucial role in determining how to allocate your resources:

  • B2B Businesses: Long sales cycles and high-value transactions call for focused efforts like content marketing, email campaigns, and LinkedIn ads.

  • B2C Businesses: Shorter sales cycles and lower-value purchases benefit from broader strategies such as social media, paid ads, and SEO.
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3. Make the Maximum Impact

  • Prioritize Channels: Identify where your audience spends time and invest accordingly. These channels may change from year to year depending on your goals. If you're adding a new product or service to your business this year, allocating a larger portion of your budget to advertising to past customers instead of reaching out for new leads.

  • Track and Measure Performance: Use analytics to monitor campaign effectiveness and adjust spending as needed. It can be tempting to stop a campaign the first you try it and get no results, but understand that it can take time to gain traction. Continue your efforts for a minimum of 3-6 months before judging it's effectiveness.

  • Diversify Your Marketing: Don’t rely on a single channel. A mix of strategies reduces risk and broadens your reach. It also helps with the repetition needed to make your brand recognizable. For example, you can send out a direct mail campaign to a specific neighborhood and targeting that same area with paid Facebook ads.

Spend Your Marketing Budget Wisely

The size of your budget is an important step, but how you choose to spend that money matters even more. With a clear strategy, you can maximize your return on investment and achieve measurable results.


If you’re unsure where to begin or how to optimize your marketing budget, we’re here to help. Graphic Haven specializes in helping businesses create impactful, data-driven marketing plans. Let’s discuss your goals and craft a customized approach to achieve them.



Let’s work together to make your marketing dollars work harder for you.

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