Deciding how much to spend on marketing is one of the toughest calls for any business. Spend too little, and no one notices you. Spend too much in the wrong places, and you waste money.
There’s no universal answer. A small B2B firm can’t budget like a global e-commerce brand, and a startup chasing rapid growth won’t spend like an established company with steady sales. Even location matters – what works in the UAE may not make sense in the UK or the US.
So how do you decide? Should marketing always be a set percentage of revenue? How do different industries approach it? And how do you make sure every dirham works as hard as possible? The key isn’t spending more, it’s spending smarter.
The rule of thumb: percentage of revenue as a benchmark
One of the simplest ways to set a marketing budget is by using a percentage of revenue. It keeps spending in check while ensuring marketing gets the attention it deserves.
In B2B, companies typically spend 2 per cent to 5 per cent of revenue – enough to focus on relationship-building, targeted campaigns, and long sales cycles. B2C businesses need more – 5% to 10% – because they reach a wider audience with frequent advertising. Startups and high-growth companies often go big – 15 per cent to 30 per cent – because gaining market share fast requires aggressive marketing.
These are common benchmarks, but they aren’t set in stone. Your budget depends on industry, competition, and how fast you want to scale.
Industry-specific marketing budgets: how much is “normal”?
Not every industry spends the same. A retail brand needs a different budget than a law firm or a financial services company. Some industries rely on marketing to stay visible, while others focus on referrals and long-term relationships.
Finance and insurance typically spend 9 per cent to 10 per cent of revenue, focusing on trust, reputation, and content that reassures customers. Media and communications companies spend much more – around 14% – because constant visibility is key. Retail and e-commerce often go beyond 10%, investing heavily in paid ads, influencer marketing, and promotions to drive sales.
These are industry norms, but the bigger question is: What are your competitors doing? If they’re outspending you, they’re likely getting in front of more potential customers.
Marketing budgets in different regions: the UAE vs. global trends
Marketing budgets also vary by region. What works globally may not work in the UAE or the Gulf.
According to Gartner’s 2024 report, global marketing budgets have shrunk to 7.7 per cent of total revenue, reflecting tighter spending. Deloitte’s 2023 survey found media companies among the highest spenders (19.4 per cent of revenue), while industries like mining and construction allocate as little as 3.5 per cent.
In the UAE and Saudi Arabia, the trend is moving in the other direction. Digital advertising in the region is projected to grow 20%, making it one of the fastest-rising markets worldwide. Luxury, real estate, tourism, and retail businesses are investing heavily in marketing to reach a high-spending consumer base.
Dubai-based businesses also face unique challenges. The city attracts a global audience, so marketing has to work across multiple cultures and languages. Customers expect high-end branding, a strong digital presence, and seamless user experience. Data-driven marketing is rising as businesses use analytics to refine strategy.
Global benchmarks are useful, but businesses in the UAE need to focus on what works here – how competitors are spending, where customers are most active, and which strategies drive real results.
How to build a smart marketing budget
A marketing budget isn’t a guess – it’s a plan. The goal is to spend where it makes the most impact.
Start with clear objectives. Do you need brand awareness, leads, or direct sales? Your budget should reflect your priorities.
Look at what competitors are doing. If they’re investing heavily in marketing, they’re probably reaching more customers. Industry benchmarks provide a helpful reference, but staying competitive matters more.
Focus on the right channels. Digital ads, social media, PR, events, and content marketing all have their place. The key is knowing where your audience is and making sure they see you there.
Track performance and adjust. Marketing isn’t static – strategies that worked last year may not work now. Regular reviews help shift resources to what’s driving results.
A smart marketing budget is flexible – it adapts as your business grows, ensuring you’re always putting money where it matters.
What goes into a marketing budget?
Marketing isn’t just about ads. A strong budget covers all the moving parts that keep things running.
Paid ads – Google, social media and display ads often take the biggest chunk, especially for businesses that rely on quick traffic and lead generation.
SEO, content, and email – These are long-term investments that build credibility, improve search rankings, and keep customers engaged without ongoing ad spend.
Events and sponsorships – Trade shows and conferences are key brand-building opportunities for businesses that rely on networking.
Marketing tools and software – This includes CRM systems, automation and analytics. Running campaigns without the right tools is like driving blindfolded.
Agency vs. in-house – Some businesses hire a full marketing team, while others outsource. The right choice depends on budget, expertise and workload.
Salaries – In many companies, marketing salaries comprise 25% of total spending. A strong team is as much an investment as the campaigns themselves.
Optimising budget for maximum ROI
A marketing budget isn’t about how much you spend – it’s about how well you spend it.
It’s essential to track performance. Data shows what’s working – if one channel brings better ROI, shift more budget there.
You should also use the 70-20-10 rule:
- 70% goes to proven strategies that consistently drive results.
- 20% is spent on emerging approaches that show promise.
- 10% is reserved for testing fresh ideas. Some will work and some won’t, but testing keeps you ahead.
It’s crucial to balance short-term and long-term efforts. SEO and content marketing build sustainable growth, paid ads and social media bring immediate visibility, and a strong budget gives attention to both.
Marketing budgets should never be locked in place. Review, tweak, and refine your budget based on what’s working.
Spending with purpose
A marketing budget that doesn’t adapt won’t keep up. Markets shift. Consumer behaviour changes. What worked last year might not work now.
The smartest companies track, test, and adjust. Every dirham spent should have a job to do. Growth doesn’t come from spending more – it comes from spending with purpose.
