B2B product industries allocate, on average, approximately 7.8% of their revenues to marketing. In simple terms, your marketing budget should be a percentage of your revenue. A common rule of thumb is that B2B companies should spend between 2 and 5% of their revenues on marketing. A marketing budget normally covers the costs of advertising, promotion and public relations.
Each amount varies depending on the size of the company, its annual sales and the amount of advertising that the competition allocates. Depending on the industry, marketing budgets can range from as little as 1% of sales to more than 30%. Startups can spend up to 50% of sales on introductory marketing programs during the first year. Smaller companies may simply try to match the expenses of their direct competitors.
The average allocation usually ranges from 9 to 12% of the annual budget, while smaller companies can reach 2%.