A potential client asks you the question: “How much should we spend on our marketing this year?” How do you answer?
The common answer I’ve seen or heard marketing leaders suggest is:
“Around 20% of revenue — spread across channels, based on your marketing team’s structure.”
That answer isn’t wrong. But it’s also not the right place to start.
Let’s Rephrase the Question
Imagine this instead:
If you had evidence, say for example, insider information, that a particular stock, crypto asset, or business investment would be ROI-positive…
How much would you invest?
What if your evidence were historical data?
For example, how the S&P 500 does 10%- 12% ROI annually or 7%-9% when adjusted for inflation.
Most people would answer:
“As much as I can reasonably afford or risk at that point in time.”
Which makes total sense.
Over 20 million “super-rich” individuals globally have historically maintained significant investments in U.S. stocks, including the S&P 500, with over 30% of millionaire portfolios often allocated to equities.
So, you copy the rich people.
You invest as much as you can afford or risk, because you’re expecting returns.
And that’s where the twist comes. Most businesses don’t think of marketing as an investment. They think of it as an expense.
Marketing Has Benchmarks — Just Like Investments
Every serious marketing channel comes with industry benchmarks.
In 2026:
- Email marketing (eCommerce) still delivers some of the highest returns, with average ROI estimates between $36–$45 for every $1 spent.
- Creator-led marketing continues to outperform many channels, with average returns of $57.8 for every $1 spent.
- Paid social ads average roughly $2 for every $1 spent.
These numbers aren’t guarantees — but they are signals.
The Real Question You Should Be Asking
If you treat marketing as an investment, your goal becomes clear:
Can we hit — and ideally exceed — the industry benchmark for this channel?
But if you treat marketing as an expense, the goal quietly shifts to:
How much can we reduce or save on marketing spend?
And that mindset almost always caps your growth.
My Final Thoughts
The size of your marketing budget matters less than how you think about it.
Thinking of it as expenses results in it being minimised.
Thinking of it as investments results in it being optimised.
And in truth, your marketing only works when you treat it like the latter.
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