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STATISTICS / MARKETING BUDGET 2026

Marketing Budget as a Percentage of Revenue: 2026 Data

What businesses spend on marketing as a share of revenue, by company size, industry and B2B or B2C. Each number with its sample and a link to the source.

By Timur GrigorchukPublished October 18, 20268 min read

The short answer

Large companies spend 7.8 percent of revenue on marketing (Gartner, 401 CMOs, 2026).

A wider US survey of 308 marketing leaders puts the average at 9.0 percent, and companies under $10 million in revenue report 13.3 percent from 20 responses.

Smaller companies spend a larger share, so pick your number by size first and industry second.

In this article 11 sections

The numbers in one table

Two annual surveys carry most of the evidence. Gartner asks large-company CMOs. The CMO Survey, run by Duke University's Fuqua School of Business, Deloitte and the American Marketing Association, asks US marketing leaders across all sizes.

QuestionNumberSource
What does a large company spend on marketing?7.8% of revenueGartner, 2026
What does the wider US survey say?9.0% of revenueThe CMO Survey, 2026
What do companies under $10 million in revenue report?13.3% of revenue, from 20 responsesThe CMO Survey, 2026
How much of the budget goes to paid media?31.4%, a five-year highChief Marketer on Gartner, 2026
How much goes to technology?19.4%, a five-year lowChief Marketer on Gartner, 2026
How much digital work do outside agencies and partners do?33.6%The CMO Survey, 2026
What gets cut when profit falls short?Marketing, 45.4% of the timeThe CMO Survey, 2026

What large companies spend, year by year

Gartner's figure fell from 11 percent in 2020 to 6.4 percent in 2021, recovered to 9.5 percent in 2022 and eased to 7.8 percent by 2026. Its respondents are mostly companies with more than $1 billion in revenue, so read it as a large-company number.

StatisticSampleSource
2026: marketing budgets were 7.8% of company revenue, up from 7.7% in 2025401 CMOs and marketing leaders, North America, UK and Europe, January to March 2026Gartner, 2026
2025: 7.7% of company revenue, flat on the year before402 CMOs, February to March 2025Gartner, 2025
2024: 7.7%, down from 9.1% in 2023. The four years before the pandemic averaged 11%, the four since 8.2%395 CMOs, February to March 2024Gartner, 2024
2023: 9.1%, down slightly from 9.5% in 2022410 CMOs, March to April 2023Gartner, 2023
2022: 9.5%, up from 6.4% in 2021 and still under the 2018 to 2020 average of 10.9%405 CMOs, February to March 2022Gartner, 2022
2021: 6.4% of company revenue, down from 11% in 2020400 CMOs and marketing leaders, March to May 2021Gartner, 2021

What a wider US survey says

The CMO Survey reaches smaller firms than Gartner does, and its average runs higher. The 2026 average of 8.96 percent has a standard deviation of 11.45 points, so companies differ a lot. These are means, not medians.

StatisticSampleSource
2026: marketing is 9.0% of company revenue and 9.6% of the overall company budget, the lowest share in several years308 US marketing leaders answered (14.6%), January 2026. 154 answered the revenue questionThe CMO Survey, 2026, breakout
2025: marketing is 9.4% of company revenue and 11.4% of the overall company budget281 US marketing leaders answered (13.7%), January to February 2025The CMO Survey, 2025

What share of revenue do smaller companies spend?

A larger share. The 2026 CMO Survey reports 13.34 percent under $10 million in revenue and 17.40 percent from $10 to $25 million. Those cells hold 20 and 15 responses, so treat them as direction, not a promise.

Gartner's 2021 survey saw the same pattern at a larger scale. Companies under $500 million spent 8.6 percent, and those over $2 billion spent 5.7 percent.

StatisticSampleSource
Under $10 million in annual sales: 13.34% of revenue20 responsesThe CMO Survey, 2026
$10 to $25 million: 17.40%15 responsesThe CMO Survey, 2026
$26 to $99 million: 11.14%18 responsesThe CMO Survey, 2026
$100 million and above: 5.86% at $100 to $499 million, 6.86% at $500 to $999 million, 5.70% at $1 to $9.9 billion, 9.45% at $10 billion and over34, 17, 33 and 15 responsesThe CMO Survey, 2026
Over $2 billion in revenue: 5.7%. Under $500 million: 8.6%400 CMOs and marketing leaders, 2021Gartner, 2021

B2B, B2C and industry

Consumer product companies report more than business-to-business ones, with one exception. B2B services runs above B2C services in 2026.

These groups are small and they move. The same survey had B2C products at 15.5 percent in 2025, against 11.99 percent in 2026. Use them as a range, not a target.

StatisticSampleSource
2026 by sector: B2B products 7.02%, B2B services 10.07%, B2C products 11.99%, B2C services 7.24%61, 41, 34 and 18 responsesThe CMO Survey, 2026
Highest industries with 15 or more responses: consumer packaged goods 11.53%, tech, software and platforms 10.56%15 and 33 responsesThe CMO Survey, 2026
Lower industries with 12 or more responses: banking, finance and insurance 7.43%, professional services 6.84%, healthcare 5.88%, manufacturing 5.64%21, 12, 17 and 13 responsesThe CMO Survey, 2026
Professional services firms put 8% to 15% of revenue into marketing700+ firms, 2023 High Growth Study (Hinge Research Institute with Deltek)Consultancy.eu, 2023
Private B2B software companies spend a median 8% of annual recurring revenue on marketing. The base is recurring revenue, not total revenue1,000+ private B2B SaaS companies, March 2026SaaS Capital, 2026

Where the marketing money goes

Paid media is the biggest line and the only one that has grown its share for five years. Technology has shrunk to its lowest share in five years. People and agencies sit in between.

Before you add or cut tools, run a martech audit.

StatisticSampleSource
2026: paid media took 31.4% of marketing expenses, up from 25.1% in 2021401 CMOsChief Marketer on Gartner, 2026
2026: technology took 19.4% of the budget, down from 26.6% in 2021. Labor rose from 21.9% to 24.5%401 CMOsChief Marketer on Gartner, 2026
2026: digital channels were 67.5% of marketing expenses, up from 54.9% in 2023401 CMOsChief Marketer on Gartner, 2026
2025: paid media was 30.6% of the marketing budget, or 2.4% of company revenue402 CMOsGartner, 2025
2025: technology took 22.4% of spend, labor 21.9% and agencies 20.7%. Each had lost share over time402 CMOsChief Marketer on Gartner, 2025
Outside agencies, partners and services do 33.59% of digital marketing work198 responses, January 2026The CMO Survey, 2026
Small businesses put 37% of their marketing budget into advertising, and 96% will advertise. The estimated average advertising budget is $78,0001,006 marketing leaders and owners, businesses up to 100 employees, March 2025, commissioned by Intuit SMB MediaLabsIntuit SMB MediaLabs, 2025

How budgets changed, and what gets cut

Budgets grow slowly, and marketing is where companies cut first. Fewer CMOs say they lack money than three years ago, but more than half still do.

StatisticSampleSource
Overall marketing spending grew 1.7% in the prior 12 months in 2026, the smallest rise since 2021. Digital grew 8.2%. In 2025 the figures were 3.3% and 7.3%163 responses in 2026, 281 in 2025The CMO Survey, 2026, 2025
When profit falls short, 53.1% of companies focus on cutting costs, up from 46.0%. Marketing is cut 45.4% of the time over other expense areas160 responses to the cut questionThe CMO Survey, 2026
Acquisition budgets are 26.0% larger than retention budgets, up from 19.6% a year earlier162 responsesThe CMO Survey, 2026
CMOs who say they lack the budget for their strategy: 71% in 2023, 64% in 2024, 59% in 2025, 56% in 2026395 to 410 CMOs a yearGartner, 2026, 2025, 2024, 2023

Numbers you will see elsewhere, and the weight they deserve

The pages ranking for this topic repeat a few round numbers. Most carry no source or year, or they date from 2018. Here is how to read each one.

NumberWhere it comes fromWeight today
Spend 7 to 8% of revenue if you are under $5 millionCredited to the SBA on an Elevated Marketing Solutions page. No year given.Low. We did not find it in the SBA's own budget post. Under $10 million, the 2026 CMO Survey reports 13.34% from 20 responses.
B2B 5 to 10%, mature companies 2 to 5%, aggressive growth 10 to 20% or moreThe Pedowitz Group page. No source or year.Low. A planning range, not a measurement. The 2026 CMO Survey reports 7.02% for B2B products and 10.07% for B2B services.
B2B 2 to 5%, B2C 5 to 10%BDC page, updated August 2023. No source or year.Low. Below every B2B figure in the 2025 and 2026 CMO Survey, which run from 6.4% to 10.07%.
Startups spend 20 to 50% of revenueElevated Marketing Solutions. No source.Low. We found no survey that reports it.
Average marketing spending was 7.9% of revenue in 2018. B2B products 6.3%, B2B services 6.9%, B2C products 9.6%, B2C services 11.8%Web Strategies, quoted in an SBA post from July 2019. 2018 data.Secondary and pre-2020. The total sits near Gartner's 7.8% today. The B2C services figure is now 7.24% in the 2026 CMO Survey, so do not use it as a current rate.
The average business spends 1.08% of revenue on advertising. Retailers about 4%, restaurants 1.93%Small Business Trends, quoted in the same SBA postSecondary and pre-2020. It counts advertising only, so it does not compare with total marketing spend.
Canadian small business marketing costs average just over $30,000 a yearBDC survey of 1,400+ Canadian businesses, 2019, cited on the BDC pageSecondary, pre-2020 and in Canadian dollars, not a share of revenue. Use it only as a size check.

What it means for a business like yours

Start with your own number. Divide last year's marketing cost by last year's revenue. Count the four things Gartner counts: paid media, technology, people and agencies.

My read: the data supports 8 percent as the floor for a business that wants to hold its position. For a business under $25 million in revenue that wants to grow, 10 to 13 percent is where the survey data points. That is a judgment from the tables above. No survey reports it as a target. In a portfolio company, set it inside the 100-day plan after close.

Size moves the number more than industry does. A $5 million company and a $5 billion company should not copy the same percentage. At $100 million in revenue and above, the 2026 averages sit between 5.7 and 9.5 percent. The choice between an in-house team or an agency affects both cost and ownership. The fractional CMO statistics cover a third option.

Most budgets get set once a year. The cheapest time to fix the number is before it is approved. Before you move budget, test whether missing outcomes could reverse the winner. Spend, follow-up and measurement work best as one growth system.

What to check this week

Four checks, one hour. Ask whoever runs your books for the inputs.

  1. Divide last year's total marketing cost by last year's revenue. Write the percentage down.
  2. Split that cost into paid media, technology, people and agencies. Compare it with the 2026 split: paid media 31.4 percent, technology 19.4 percent, labor 24.5 percent.
  3. Ask who owns the number, and what it returned in booked work, not clicks.
  4. Pick one target for next year: hold, or step up. Name the person accountable.

How we picked these numbers

We opened every page linked here and wrote down the sample, the year and the exact figure. Primary sources come first. Gartner's press releases and the CMO Survey's own reports carry the argument. Trade press appears only where it reports a primary figure we could not read in the original.

We left out figures with no source, round numbers repeated from page to page, and anything we could not open at the source. That removed several widely quoted software and professional services benchmarks.

Definitions differ, so compare with care. Gartner and the CMO Survey measure total marketing against revenue. SaaS Capital uses recurring revenue. The Intuit survey asked about advertising and excluded labor. Pre-2020 studies appear only in the table above, marked and weighed. You may quote any number here with a link to this page.

Questions leaders ask

What percentage of revenue should a business spend on marketing?

Large companies average 7.8 percent (Gartner, 2026). The wider US CMO Survey reports 9.0 percent in 2026 and 9.4 percent in 2025. Companies under $25 million in revenue report 13 to 17 percent in the same survey, from small samples, so plan from your size.

Is 10 percent of revenue a good marketing budget?

It sits above Gartner's 7.8 percent and near the CMO Survey's 9.0 percent. For a company under $25 million that wants to grow, it is inside the range the data supports. Above $100 million in revenue, the 2026 CMO Survey bands run from 5.70 to 9.45 percent.

How much of a marketing budget goes to paid media?

31.4 percent in 2026, a five-year high and up from 25.1 percent in 2021 (Gartner, as reported by Chief Marketer). In 2025 it was 30.6 percent, or 2.4 percent of company revenue (Gartner).

What share of revenue do small businesses spend on marketing?

The best recent figures we could open come from the 2026 CMO Survey. It shows 13.34 percent under $10 million in revenue (20 responses) and 17.40 percent from $10 to $25 million (15 responses). Intuit's 2025 survey of 1,006 businesses with up to 100 employees found they put 37 percent of marketing budgets into advertising.

Is the SBA's 7 to 8 percent marketing rule real?

It is often credited to the SBA. We did not find it in the SBA's marketing budget post from July 2019, which quotes other writers' 2018 figures instead. Treat it as a rule of thumb, not a government benchmark.

Do B2B or B2C companies spend more on marketing?

In the 2026 CMO Survey, B2C product companies report the most at 11.99 percent and B2B product companies the least at 7.02 percent. B2B services reports 10.07 percent and B2C services 7.24 percent. The groups hold 18 to 61 responses and shift year to year, so use them as a range.

How have marketing budgets changed over time?

Gartner's average was 11 percent of revenue in 2020, 6.4 percent in 2021, 9.5 percent in 2022 and 9.1 percent in 2023. It was 7.7 percent in 2024 and 2025, and 7.8 percent in 2026.

Do companies cut marketing first when profit falls?

Often. In the 2026 CMO Survey, 53.1 percent of companies focus on cutting costs when profit falls short. Marketing is cut 45.4 percent of the time over other expense areas.

SOURCES

Where’s the money leaking?

Pick one. Be honest.

Cite this article

Grigorchuk, T. (2026, October 18). Marketing Budget as a Percentage of Revenue: 2026 Data. Megawebvision. https://megawebvision.com/insights/marketing-budget-percentage-of-revenue

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