How Much Should You Spend on Digital Marketing?

There's no universal "right" percentage of revenue to spend on marketing — the right number depends on your margins, average order value and growth goals.

Start from your margin, not a rule of thumb

Calculate what cost per acquisition you can sustainably afford based on your product margin, then work backward to a budget — rather than picking a percentage because it's commonly cited.

Account for the testing phase

New campaigns need a testing budget to gather enough data before they can be judged fairly — under-budgeting the first 30 days often leads to false conclusions about what works.

Reassess quarterly, not annually

Ad costs, competition and your own margins shift — a budget set once a year without revisiting it usually ends up either too conservative or too aggressive by the second quarter.