--- title: "How Much Should a Small Business Spend on Marketing? (AU)" description: "How to set a marketing budget for an Australian small service business: benchmarks, what to count, and why return matters more than a percentage." url: "https://www.linkaidigital.com.au/blog/how-much-should-small-business-spend-on-marketing/" --- # How Much Should a Small Business Spend on Marketing? (AU) ![How Much Should a Small Business Spend on Marketing? (AU)](https://imagedelivery.net/bVV3LGIKkEXotkV_Bk5iLQ/linkai-how-much-should-small-business-spend-on-marketing/public) Ask what to spend on marketing and you'll get percentages that sound authoritative: Gartner's 2026 CMO Spend Survey puts the average at 7.8% of revenue. Treat that as a sanity check, not the answer. The budget that actually fits your business comes from working backwards: what you're trying to achieve, and what a client is worth to you. ## Why the percentage rule is only a starting point Benchmarks ([Gartner’s 2026 CMO Spend Survey](https://www.gartner.com/en/newsroom/press-releases/2026-05-11-gartner-2026-cmo-spend-survey-finds-cmos-allocate-15-point-3-percent-of-marketing-budgets-to-ai-but-only-30-percent-are-ready-to-scale-ai-capabilities) puts the average marketing budget at 7.8% of company revenue, a single-digit to low-teens percentage that runs higher in growth mode) are useful as a reality check: if you're spending nothing or half your revenue, something's off. But two businesses at the same percentage can get wildly different results, so the percentage alone can't tell you what to spend. ## Work backwards from a client's value A more reliable method: know what a client is worth to you over time, decide what you can profitably pay to acquire one, then fund the channels that hit that number. If a client is worth several thousand dollars and you can win one for a few hundred, you should be spending *more*, not agonising over a percentage. ## Spend where return is provable Put money behind what you can measure, and the cheapest "spend" is often fixing capture so you stop wasting the leads you already pay for. Our [calculator](https://www.linkaidigital.com.au/calculator) helps you see what missed enquiries cost before you add a dollar of new spend. ## Key takeaways - Percentage benchmarks are a sanity check, not the answer - Set the budget from a client's value and what you can profitably pay to win one - Spend where return is provable; the cheapest gain is fixing capture - Growth phases justify spending more, not less ## Frequently asked questions ### Is there a standard marketing budget percentage? Figures in the single-digit to low-teens percent of revenue are commonly cited, higher for growth. But treat it as a guide, not a rule, and judge by return. ### Should I spend more or less in a slow period? It depends on cash and return, although cutting marketing that's profitably winning clients usually deepens a slow period rather than fixing it. ### What's the highest-return place to start? Usually capturing and converting the enquiries you already generate, it costs little and stops waste before you scale spend. ### How do I know if I'm spending too much? When you can't tie the spend to results. If you can't measure a channel's return, that's the spend to question first. **Want to see where your business stands?** Get a [free AEO visibility scan](https://www.linkaidigital.com.au/aeo-scanner), or [book a free strategy session](https://www.linkaidigital.com.au/strategy-session#book). **Related reading:** [A digital marketing strategy template for AU service businesses](https://www.linkaidigital.com.au/blog/digital-marketing-strategy-template-australia) · [Signs you need a fractional CMO (not a full-time hire)](https://www.linkaidigital.com.au/blog/signs-you-need-a-fractional-cmo) · [The complete marketing strategy guide](https://www.linkaidigital.com.au/marketing-strategy-guide) ![Katrina Curll](https://imagedelivery.net/bVV3LGIKkEXotkV_Bk5iLQ/linkai-founder-katrina-curll-linkai-digital/public) ## [Katrina Curll](https://www.linkaidigital.com.au/katrina-curll) Co-Founder, Strategy & Systems, Linkai Digital Katrina co-founded Linkai Digital after more than 20 years in marketing, including seven as a Vice President at Forrester. She writes about the strategy and systems that capture, convert and keep clients for Australian service businesses. [All articles by Katrina](https://www.linkaidigital.com.au/blog/author/katrina-curll) [LinkedIn](https://www.linkedin.com/in/katrinacurll/) ## More on Get More Leads ![How AI qualifies your leads automatically: so you only call the right people](https://imagedelivery.net/bVV3LGIKkEXotkV_Bk5iLQ/linkai-ai-lead-qualification-australia-linkai-digital/blogcard) ### How AI qualifies your leads automatically: so you only call the right people Not every enquiry is worth calling back. Here's how Australian service businesses use AI to qualify leads automatically and spend their follow-up time on the people most likely to book. ![How Australian cosmetic and aesthetic clinics are using AI to fill their books](https://imagedelivery.net/bVV3LGIKkEXotkV_Bk5iLQ/linkai-ai-automation-medspa-australia-linkai-digital/blogcard) ### How Australian cosmetic and aesthetic clinics are using AI to fill their books How aesthetic clinics fill their calendars with automation: instant enquiry response and retention reminders, while staying inside AHPRA's strict advertising and testimonial rules. ![Is AI search replacing Google? What Australian businesses need to know](https://imagedelivery.net/bVV3LGIKkEXotkV_Bk5iLQ/linkai-ai-search-replacing-google-australia-linkai-digital/blogcard) ### Is AI search replacing Google? What Australian businesses need to know AI search is changing how Australians find local businesses. Here's what it actually means for your service business, and exactly what to do about it now. ## How we help with this ## Want to fix this one without a retainer? Not ready for a retainer? Do this one yourself with the Get-Found Kit, or have a single fix built properly for a fixed fee. ## See what your business is losing, and what it's worth to fix. A 30-minute strategy session. We map where revenue is slipping and show you the seven-day plan. It's a working session, not a sales call.