How Much Should a Small Business Spend on Marketing?

How Much Should a Small Business Spend on Marketing?

Most small businesses either spend too little and wonder why nothing works or spend without a system and wonder where the money went.

The question isn't just how much. It's how much, on what, and in what order.

Why this problem happens

• Marketing gets treated as a cost, not an investment

• Without tracking cost per lead or CAC, there's no way to know if it's working

• Most businesses fund tactics ads, a website, social posts rather than a connected system

• No system means no return, regardless of how much is spent

Common mistakes businesses make

• Spending before the funnel is ready. Ads and SEO won't work if your website doesn't convert. Fix the infrastructure first

• Underspending, then deciding marketing doesn't work. A £200/month ad budget rarely generates enough data to optimise campaigns flatline before they perform

• Spreading budget too thin. Five channels done poorly beats nothing. One or two channels done properly beats everything

• No tracking. If you don't know your cost per lead, every budget decision is guesswork

• Asking the wrong question. "What can we afford?" is the wrong starting point. "What return do we need and what investment produces it?" is the right one

What actually works

• Benchmark at 7–12% of revenue higher during active growth phases

• Fix conversion infrastructure first website, landing pages, offers before spending on traffic

• Commit to one or two channels and go deep before expanding

• Set a minimum viable budget: £500–£1,000/month for Google Ads, £300–£500/month for Meta Ads

• Track cost per lead by channel; that's the number that tells you whether to scale or stop

How the full system connects

At Six Point Media, we build marketing around four stages: Content → Distribution → Conversion → Retargeting.

Most small businesses skip straight to Distribution ads, SEO and wonder why the spend doesn't convert.

The system only works when all four stages are funded and connected. Content builds trust. Distribution drives traffic. Conversion turns visits into enquiries. Retargeting recovers the leads who didn't act first time.

Final thoughts

There's no magic number. But there is a wrong way to spend without tracking, without a funnel, and without a system. Get the infrastructure right and every pound works harder.

Work with Six Point Media

Not sure where your marketing budget should be going? Our marketing review tells you exactly where to invest first and what return to expect.

Frequently asked questions

What percentage of revenue should a small business spend on marketing? 7–10% for established businesses, up to 12–15% in active growth phases. More important than the percentage is how it's allocated a connected system always outperforms the same spend on isolated tactics.

Is £500 a month enough? It depends on the channel and what it's pointing at. £500/month on Google Ads with a converting landing page can work well for a local business. The same budget split across five channels with no tracking produces almost nothing.

How do I know if my marketing spend is working? Track cost per lead by channel. If you know it costs £40 in ad spend to generate one enquiry, you can calculate ROI and make informed decisions. If you're not tracking this, you're not managing your marketing; you're hoping.