So it’s 2026 and time to tackle those company finances for the year ahead. The big question is – how much should you invest in your marketing?
Marketing budgets vary depending on the size and industry of your business, but research suggests that, on average, companies seeking conservative growth should be investing up to 10% of their revenue into marketing spend. But our experience with the Social Care Sector tells us that this figure is typically significantly lower.
You may be wondering – what are the benefits of marketing to justify the cost?
Our blog breaks down the facts, figures and finances needed to make the most of your marketing budget and reap the benefits for your business. The world of marketing can be complex, but Splice of Lime is here to support you every step of the way.
What is a typical marketing budget?
Although each company’s marketing budget will be different, depending on the size of the business, the industry, and yearly revenue, there is a suggested percentage that all businesses should be spending on marketing.
As reported by Deloitte, marketing made up around 13.6% of a company’s total budget in 2023, a rise of 3.9% from 2021. According to various sources (BDC and etropo), B2C companies, as well as small and medium-sized businesses, should be spending around 5-10% of their revenue on marketing. Healthcare and social care companies typically have lower marketing budgets compared to other industries, allocating an average of 2-5% to marketing. Yet this has also been rising due to the increase of digital health and patients searching for online services.
What does a marketing budget include?
Now you’ve decided how much to invest – where is that money going and what will be the return on investment (ROI) for your spend?
For most businesses, marketing budgets are calculated as a percentage of revenue and intended consumer reach. Marketing spend is designed to build brand awareness, company growth and sales. Marketing budgets are allocated across different core areas and channels which support your long-term brand strategy.
Step one is defining your brand; specify your vision, mission, and values, to give clarity to who you are and what you do. Follow this by creating your branding – guidelines, logo, look and feel – to sum up your overarching aesthetic.
Crack down on your selling points and USP to hone in on your target audience. Then define your goals and what you would like to get out of a marketing campaign – is the aim to increase enquiries, to raise brand awareness, or to boost engagement?
This is where your budget comes in – use your spend to prioritise your goals and direct your marketing campaign towards the most effective channels within budget to reach your target audience.
This might include:
- Content creation, social media, email marketing, graphic design, website design.
- Advertising, PR, event support.
- Analytics and optimisation to assess what is performing best and redefine strategies to reflect current market conditions and technology.
- Strategy and campaigns.
- Agency support – funding marketing professionals who have the skills, experience and network to provide high quality campaigns and reliable results.
Why should businesses invest in marketing?
Marketing plays a vital role in helping businesses define their brand identity, gain visibility, grow their offering, and build lasting relationships with customers
What are the benefits of marketing your business?
- Increasing brand awareness: it is important to invest in building your brand identity before being able to generate leads. Marketing ensures that your audience knows who you are, what you offer, and why your services matter to them. This is achieved through clear messaging, customer value proposition (CVP) and your unique selling point (USP).
- By increasing visibility to your target audience, you can build up a relationship with loyal customers and generate lasting leads, boosting sales and engagement.
- Effective marketing also helps businesses understand customer needs and preferences, allowing them to tailor offerings, improving customer satisfaction and strengthen a company’s credibility in the sector.
- The budget can be used to assess ROI for the next year, measure effectiveness of campaign, and identify key areas for improvement.
In conclusion
Ultimately, strategic marketing is an effective way to support the long-term growth and visibility of your business, giving you a competitive edge and a solid foundation for your customer relationships
Marketing budgets can be allocated to inhouse staff or to a dedicated external marketing agency, such as Splice of Lime. As an agency specialising in the Care sector, at Splice of Lime we have the knowledge and expertise to support your health and social care marketing strategy.
When building any business, whether you are a Care provider or supplier, it is vital to understand your company’s branding, definition and positioning to effectively market to your target audience. We can support your business with a full marketing campaign strategy to develop your brand, help you define your messaging, and make delivery more consistent to grow your visibility, reach, conversions, and longevity.
To find out more about our services and how we can support your marketing strategy, get in touch today: admin@spliceoflime.com.