📢 Marketing & Advertising · Free Tool

Marketing Budget Planner

Allocate your marketing budget across channels intelligently. Enter your total budget, business type and goals to see recommended channel splits, expected leads per channel and blended CAC at your budget level.

Free · No SignupChannel AllocationExpected Leads
📅

Your Marketing Budget

£5,000
£50,000
Budget as % of Revenue
Industry Benchmark
Estimated Monthly Leads
Blended Est. CAC
📊

Recommended Budget Allocation

📋

Channel Breakdown

ChannelAllocationMonthly SpendEst. LeadsEst. CAC

Marketing Budget Planning — How to Allocate Spend Across Channels

Marketing budget allocation is part science, part test-and-learn. Industry benchmarks provide a starting framework — but the right allocation depends on your business model, stage, margins and channel-specific performance data. Understanding how different business types typically allocate spend, and what to expect from each channel, prevents the most common mistake: over-investing in low-ROI channels before validating performance.

Marketing Budget Benchmarks by Business Type

Business TypeTypical Budget (% Revenue)Top ChannelCAC Range
E-commerce / Retail8–15%Paid Search + Social£15–£80
SaaS / Software20–35%Content + Paid Search£50–£300
B2B Services5–10%Events + Content£80–£500
Local Services3–8%Google Local + Social£20–£80
Professional Services5–8%Referrals + Content£100–£400

Frequently Asked Questions

What percentage of revenue should I spend on marketing?

General benchmarks: B2B companies 5-10% of revenue, B2C consumer brands 10-20%, SaaS high-growth 20-40% of ARR. Early-stage companies often invest more (20-40%) during growth phases; mature profitable businesses reduce toward 5-15%. The correct number depends on your growth ambitions, CAC payback period, LTV and competitive dynamics. Underspending vs market is a missed opportunity; overspending with poor unit economics is a cash drain.

Which marketing channel has the best ROI?

Email marketing typically delivers the highest ROAS (£35-42 per £1 spent on average, per DMA data) because the list is an owned asset and operational costs are low. Referral programs also deliver extremely high ROI. For acquisition, Google Search typically outperforms social because of purchase intent. The best channel for your business depends on where your customers search, what they consume and at what price point your product becomes worth paid search.

How do I track marketing ROI across channels?

Three essential tracking foundations: (1) UTM parameters on all paid links to identify channel source in Google Analytics; (2) Conversion tracking in Google Ads and Meta Ads Manager; (3) A CRM that records customer source from first touch to closed deal. For multi-channel attribution: GA4 uses data-driven attribution by default; tools like Triple Whale or Northbeam provide more sophisticated cross-channel attribution for DTC brands.