What Percentage Of Your Turnover Should You Invest In Marketing?

Investing in digital marketing is a smart decision for any SME serious about sustained business growth, but determining the right budget to invest isn’t always clear-cut. On the one hand, you need to invest enough to allow you to capitalise on all the available marketing channels in a sustained manner, but on the other – and here’s the clinch – it needs to be a sustainable expenditure. You won’t gain anything from throwing a large budget at marketing one year, only to dramatically scale it back the next.

If you invest your money wisely, of course, your marketing budget will pay for itself, with interest, in increased revenues and sales, but at the outset, you’ll need to have a sum of money set aside to get you started.

So, How Much Should You Be Budgeting For Marketing?

For most businesses, the marketing budget is calculated as a percentage of gross turnover, and this can be anything from 5% to 15% of annual revenues, varying by industry. B2C-focused businesses, for instance, sometimes invest up to 20% to 25% in marketing and sales, while engineering and manufacturing companies sometimes find 5% to 10% of their revenues to be sufficient. Start up businesses also frequently spend more as a percentage than established firms.

In 2024, UK businesses spent an average of 7.7% of company revenues on marketing, which was a drop from 9.1% in 2023 and 9.3% in 2019. The drop probably reflects the uncertain economic environment of the past five years, but also represents a growth opportunity for businesses prepared to take the plunge and spend slightly more on their marketing budget. We recommend an average of 9% to 10%, adjusted as appropriate for your industry.

So, if your business makes £1 million annual turnover, then your marketing should be £90,000 annually. You can use our free budget calculator to evaluate your marketing investment and benchmark this against industry norms.

Why Invest This Amount In Marketing?

For some businesses, 10% of gross turnover sounds like a lot of money, and it can be. However, effective marketing always pays off. A strong marketing strategy ensures that your business doesn’t become a ‘hidden gem’ in your market, and helps you to achieve growth through improved customer acquisition, better retention, and lower costs. The main reason that many businesses under-invest in marketing is doubt about its ROI, which is why, at JDR, we are always open about the tangible results achieved by many of our customers after engaging with our agency.

In some cases, measurable success can come quickly and strongly.

We have worked with some customers who have increased website traffic by nearly 200% and lead generation by over 650% within 12 months of starting a digital marketing campaign with us. This increase in visibility has the potential to deliver remarkable outcomes for businesses in all industries. One of our customers, a machine manufacturing business, was able to grow their monthly leads from 10 to around 125 and build an £8 million sales pipeline through inbound marketing.

Another e-commerce client scaled its annual sales from around £45K to over £500K.

Why Work With JDR Group?

At JDR, we provide businesses with an outsourced, all in one marketing service that avoids you having to hire an in-house specialist team or juggle multiple agencies. Each marketing strategy is tailored to your industry, competitor landscape, growth goals, and budget, and working with JDR gives you access to an experienced team of web developers, writers, graphic designers, SEO experts, social media specialists, and more, without the cost and complexity of managing multiple hires.

We also offer a bespoke strategic planning service, access to a dedicated campaign manager, and monthly reporting to ensure full accountability, transparency, and results. With a proven system in place and over 20 years of experience, our team are ready to drive measurable ROI for your business.

Find Out More

Digital marketing isn’t just another business expense or subscription – it’s an investment in your company’s long-term future prosperity. However, to get the best ROI from your marketing budget, you’ll need a unique marketing plan calibrated to your specific needs and those of your customers. To find out more, please click here to book a free discovery call and start the journey to unlocking your business’s full growth potential.

You can also access our free Digital Marketing Costs & Pricing Guide for more information about our recommended budget, the benefits of strategic marketing, and how our tailored services support you.

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