How to Calculate Your Marketing Budget



Let’s show you how to calculate your marketing budget using JEMSU’s marketing budget calculator. To find the marketing budget calculator. You simply go to and then you go to resources. And then in our resources, it’s under marketing budget calculator. So the first thing, on this page is a table. We put this table together, with a chart from the SBA or the small business administration. It gives the average amount that businesses should spend on marketing. And it definitely ranges, quite a bit from under 2% to over 16% of your gross revenue should be spent on marketing. Obviously it’s gonna vary for each business. You know, you have to kind of determine your business model and where you fit, you know, within this chart. But the average, marketing PR spend as a percentage of gross revenue is usually between six and 8%.

And you can see here on our chart, uh, that is our medium. On the low side would be 2%. And on the high side would be over 16% of your gross revenue on marketing. So this is a kind of a good chart at least to start or to look at before you, come down to the calculator. You can scroll down to the calculator. And we’ll just kind of put some sample data in here to see what it would spit out. So let’s just say that we are a accounting firm. I’ll tell you we’re an accounting. Our industry will say our yearly revenue is a million. So we do a a million in revenue. The next question is going to be your marketing budget, where you want it to be. So let’s say that we were going to say 10%, which is kind of medium high.

But let’s just say that that’s where we want to be. The next question that the marketing budget calculator asks you is, how you want to allocate, your, your, your budget, your marketing budget. We are a digital advertising agency, so we focus from which most all of our attention and, and digital advertising. But this allows you to kind of pick between a hundred percent digital and scale all the way down to a hundred percent traditional. So in this case, let’s say we will do 90% digital, 10% traditional. Now traditional advertising would be stuff like business cards and TV and radio and magazines and billboards. That’s what traditional advertising would be considered in this particular case. And then digital would be search engine optimization, paper click advertising, social media marketing, really anything, digital online. So once we add in the digital versus traditional allocation than is going to kind of output our overall marketing budget recommendation.

So in this case, if we have revenue of a million and we are going to do 10% of our revenue and we’ll split it 90 10, then this recommends that we spent $8,333 a month in marketing. The next part of the calculator, it breaks down approximately where that advertising budget should go within the digital space. It recommends for us that we spend 5,000, 250 in digital advertising. That would be, again, that’d be Pay per click advertising, like Google ads being ads, you know, social advertising, remarketing, really any display or paid pay per click advertising, SEO, the recommendation is 1500 a month. That would be a search engine optimization and content writing and optimization. And then the recommendation is that we spend at least 700 a month in branding or social media marketing. and then the remaining, since we did a 90 10 split for our marketing budget, the meaning, $833 is recommended for traditional advertising, whatever channel that that may be.

So that’s the, marketing budget calculator in a, in a nutshell. It allows you to kind of just input some of your business data and it will output the recommended amount you should spend on your advertising. And then it kind of a breakdown of that budget, uh, again, varies widely. We definitely firmly believe that sales and marketing are the lifeblood of business and, everybody, most businesses should be doing marketing of some sort, even if it’s on the low scale. That is the marketing budget calculator. And that’s how you calculate your marketing budget. Thanks.