How Much Should You Invest in Your Marketing Budget?
As your company scales, one of the most pressing questions we often hear from leadership teams is, "How much should we be investing in marketing?" It’s a simple question with a complex answer, especially when the stakes are high and you’re facing growing competition.
At I.E, we’ve worked with dozens of companies in this growth phase, and we’ve seen firsthand the challenges you face in deciding how to allocate your budget effectively. The truth is, under-investing or over-investing in marketing can both be detrimental, especially if you don’t have a clear strategy guiding your decisions.
Let’s dig deeper into some of the thoughts you may be having when making this critical decision:
1. The Fear of Wasted Spend
You’ve worked hard to scale your business, and with that growth comes the need to protect your margins. We often see executives hesitate to increase their marketing budgets because they’re terrified of throwing money into campaigns that won’t yield results.
But here’s the reality: marketing without clear KPIs, data analysis, or a long-term strategy is almost guaranteed to result in wasted spend. It’s not about how much you invest, it’s about whether or not your investments are strategically aligned with your growth objectives.
2. Playing Catch-Up Instead of Leading
As you scale, competitors are going to be watching your every move, and it’s easy to get caught in reactive marketing. Maybe you’re chasing after the latest trends or trying to replicate what your competitors are doing.
However, reactive marketing is expensive. Constantly shifting focus and trying to keep up with others leads to scattered budgets and diluted results. Instead, a solid marketing investment is one that allows you to take control of your narrative and position your company as a market leader, not a follower.
3. The Internal Tug-of-War Between Departments
When you reach this stage of growth, internal departments can start competing for budget. Operations, sales, and product development all seem urgent, and marketing can often feel like the least pressing of these.
Marketing is what creates the demand that justifies spending in all those other areas. Investing in marketing isn’t just about lead generation or sales; it’s about creating a growth engine that keeps your pipeline full and your brand relevant in a crowded market.
4. Underestimating the Cost of Inaction
One of the biggest mistakes we see companies make at this stage is keeping their marketing budget stagnant. Growth requires constant adaptation, and your marketing budget needs to scale with your ambitions.
If your competitors are outspending you—strategically—you run the risk of being out of the game entirely within a few years. It’s time to think like an industry leader, and that requires a serious commitment to marketing.
5. The Myth of "One-Size-Fits-All" Marketing Budgets
We’ve often heard the blanket statement that companies should spend 5-10% of their revenue on marketing. While this can be a useful benchmark, it’s not a rule set in stone. Every company has unique growth targets, competitive pressures, and operational costs to consider.
The right marketing budget for your business is the one that aligns with your overall goals. Are you looking to break into a new market? Is brand awareness more important than lead generation? These are the types of questions that should be shaping your budget, not an arbitrary percentage of revenue.
So, How Much Should You Really Invest?
The answer to this depends on your current growth stage, goals, and industry. At I.E, we believe that your marketing budget should be a reflection of where you want to go, not where you are right now.
Here are a few key takeaways to consider:
Allocate for flexibility: Marketing trends change fast. Build in some budget flexibility to pivot when necessary without compromising your core strategy.
Think long-term: Quick wins are important, but sustainable growth requires ongoing marketing efforts. Your budget should account for brand building as much as lead generation.
Invest in expertise: Marketing at this level isn’t just about buying ads or creating content. It’s about integrating data, automation, and customer insights to create a cohesive strategy that supports your revenue goals.
At I.E, we help companies like yours define the right marketing budget to fuel long-term growth without the guesswork. If you’re unsure where to start, let’s talk.
