Building an Informed Marketing Budget: Part 1 - Industry Benchmarks

by Jamie Rinehart on May 27, 2025

Creating a strategic marketing budget is essential for any organization. In the U.S., industry standards vary widely.  A nonprofit's budget will look very different from a manufacturer. This guide breaks down typical marketing spend benchmarks (as a percentage of revenue) for key industries and explores how much of that goes to digital marketing

We’ll also cover common ongoing digital marketing expenses (with rough cost ranges) and one-time investments like website redesigns. Finally, we’ll discuss the value of working with a digital marketing agency as a cost-effective alternative to hiring a full in-house team.

Marketing Budget Benchmarks by Industry (U.S.)

Marketing budgets as a percentage of revenue can range from single digits to well over 10%, depending on the industry. Below are typical marketing budget benchmarks for five sectors and how much of that spend is devoted to digital channels:

Manufacturing

Manufacturing companies typically allocate around 5–7% of their annual revenue to marketing. This is on the lower end of the spectrum (many B2B manufacturers rely on direct sales, trade shows, and word-of-mouth). For example, one 2024 survey found manufacturing firms spent ~6.7% of revenue on marketing on average.

Digital vs. Traditional: Manufacturing has historically invested more in traditional tactics (trade publications, in-person events), but digital marketing is becoming increasingly important even in this sector. Many manufacturers now put a significant portion of their marketing budget into digital lead generation – some large industrial firms allocate about 50–70% of their marketing spend to digital channels. Common digital efforts include search engine optimization (to ensure their products/services are found online) and LinkedIn content to reach procurement professionals. Still, traditional methods (trade show booths, print catalogs, etc.) often consume the remaining budget.

Travel and Entertainment

Companies in travel, hospitality, and entertainment tend to invest a higher share of revenue in marketing. Think of hotels, airlines, tourist attractions, or movie studios with constant promotional needs. Travel and hospitality businesses spent roughly 7–8% of revenue on marketing in recent years, according to Gartner benchmarks. In fact, travel marketing budgets grew from 7.3% to 8.4% of revenue between 2023 and 2024 as the industry rebounded.

Digital vs. Traditional: This industry is heavily digital. Consumers plan trips and entertainment online, so marketers follow. Nearly half of all travel industry ad spending worldwide is in digital channels. In the U.S., travel companies collectively spend billions on digital ads (e.g. search engine marketing, online travel agency placements, social media). A typical travel or entertainment brand may devote well over 50% of its marketing budget to digital campaigns, from search ads targeting travelers to geo-targeted promotions for local attractions. Traditional advertising (like billboards in tourist areas or TV spots for movies) still plays a role but is often a smaller slice of the budget compared to digital.

Healthcare

Healthcare organizations (from hospitals and clinics to pharmaceuticals and medical device companies) allocate around 5–10% of revenue to marketing in many cases. One analysis put the average healthcare marketing budget at about 9.3% of company revenue in 2024. Some sub-sectors vary, for instance, aggressive-growth healthcare and biotech companies might spend up to 14% of revenue on marketing (), whereas established providers might spend less.

Digital vs. Traditional: Healthcare marketing is increasingly digital, though it must often balance strict regulatory compliance. Over 90% of healthcare companies use digital marketing in some form. For example, hospital systems use content marketing and SEO to educate and attract patients, and pharma brands use targeted digital ads to reach healthcare providers. Many healthcare organizations focus a large share of spend on digital channels (website content, search ads, patient portals, social media outreach) to engage today’s connected patients. That said, traditional methods like community events, print brochures, or physician referral networks still command part of the budget. On average across industries, more than half of marketing budgets now go to digital (), and healthcare is no exception – the trend is toward a majority-digital spend as providers invest in social media, email, and search marketing to reach patients where they are online.

Business Services

Business services like professional services firms, B2B software and consulting companies, agencies, etc. often dedicate a healthy share of revenue to marketing because they must constantly generate leads and differentiate their services. U.S. professional services companies typically spend around 10-12% of revenue on marketing (For example, a recent CMO survey showed professional services firms averaged ~11% of revenue for marketing budgets. High-growth SaaS and consulting companies might invest even more when aggressively expanding their market presence.

Digital vs. Traditional: Business and professional services rely heavily on digital marketing to reach niche B2B audiences. It's common for 50% or more of the marketing budget to be spent on digital lead generation (some tech-oriented firms put as much as 70-75% into digital channels). Key tactics include content marketing (whitepapers, webinars), SEO for thought leadership, LinkedIn and search ads targeting decision-makers, and email marketing for nurturing leads. Traditional marketing (print ads in trade journals, physical events or sponsorships) might consume a smaller portion of the budget, although in-person networking events and industry conferences are still valuable. Overall, business service companies see digital marketing as cost-efficient and measurable, so most of their marketing dollars tend to flow into digital campaigns and marketing automation tools.

Community Nonprofits

Nonprofit organizations have to be very strategic with budgets, but marketing (outreach and communications) is still crucial for fundraising and community engagement. A common rule of thumb is that nonprofits should invest about 5-15% of their total budget into marketing and communications. The percentage often depends on the nonprofit's size: smaller nonprofits might need to spend toward the higher end of that range (closer to 10-15%) to get the word out, whereas a very large nonprofit might manage with <10% if that still amounts to significant dollars. The key is ensuring marketing isn't starved - experts note that under-investing (below ~5%) can impede a nonprofit's growth and mission.

Digital vs. Traditional: Nonprofits are increasingly turning to cost-effective digital marketing to maximize outreach. This includes social media campaigns, email newsletters, online fundraising platforms, educational content, and SEO to attract volunteers and donors. Many nonprofits now devote a substantial share of their marketing efforts to digital channels because of the broad reach and relatively low cost (for example, nonprofits increased their digital ad budgets by ~19% in one recent year as online fundraising grew. It's not unusual for a nonprofit to allocate at least half of its marketing budget to digital tactics. Some rely even more heavily on digital if they can leverage free or discounted platforms (like Google Grants for search ads). Traditional marketing (direct mail appeals, community events, printed collateral) still plays a role, especially for donor audiences that respond to mail or in-person events. But overall, digital marketing is a lifeline for nonprofits looking to do more with limited funds, allowing them to target supporters on social media, tell their story through video, and track engagement at a low cost.

Ready to Build Your Own Budget? Start with This Simple Exercise

Let’s bring the benchmarks to life with a real-world example.

Scenario: A B2B manufacturer with $25 million in annual revenue. Using a 6% marketing benchmark:

$25,000,000 x 6% = $1,500,000 annual marketing investment

If 50% goes to digital marketing:

$1,500,000 x 50% = $750,000 annual digital marketing budget

That digital portion funds SEO, PPC, content, analytics, CRO, and digital campaigns—the ongoing efforts that drive leads and results.

Your Turn

• What’s your company’s annual revenue?
• What percentage of that are you currently investing in marketing?
• How much of that goes to digital?
• Are you under-investing compared to your industry peers?

Jot down your numbers and bring them with you to Part 2, where we’ll break down exactly how those dollars can be allocated across the core recurring activities that make up a smart, modern marketing program.

 

About Jamie Rinehart

Jamie leverages his 19+ years of Digital Marketing and Advertising account management experience to help new Trivera clients develop strategic digital marketing plans that will help them achieve their business and brand goals.

Photo Credit: Adobe Stock