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What Should a Small Business Actually Spend on Marketing in 2027?

24 Mins

If you own a small or midsized business, there’s a good chance you’ve asked this question:

How much should we actually be spending on marketing?

The frustrating answer is that there isn’t one number that works for every business. A growing company trying to enter a new market shouldn’t have the same marketing budget as an established business focused primarily on retaining existing customers.

But there are benchmarks, and they can give you a useful place to start.

According to Gartner’s 2026 CMO Spend Survey, marketing budgets averaged 7.8% of company revenue in 2026. That number is useful as a reference point, but it comes with an important caveat: Gartner’s survey primarily represents much larger organizations.

Small businesses often need to think differently.

For 2027, instead of asking only, “What percentage should we spend?” a better question is:

What are we trying to accomplish, and what level of investment will realistically get us there?

Start With Revenue, Then Look at Your Growth Goals

A percentage of revenue is a helpful starting point.

For a business generating $2 million annually, for example:

  • 5% = $100,000 per year
  • 7% = $140,000 per year
  • 10% = $200,000 per year

That may sound like a lot until you consider everything that can fall under “marketing.”

Your marketing budget may include your website, SEO, digital advertising, social media, email marketing, content development, video, graphic design, branding, marketing technology, print materials, sponsorships, events and strategic planning.

The important thing is not hitting a particular percentage. It’s making sure your investment matches your expectations.

If your goal is simply to maintain your current market position, your investment may be relatively modest.

If you want to significantly increase revenue, expand geographically, launch a new service or take market share from established competitors, you’ll probably need to invest more aggressively.

You can’t expect a growth strategy from a maintenance budget.

Don’t Divide Your Budget Equally

One of the biggest mistakes businesses make is treating marketing like a checklist.

A little toward social media. A little toward Google Ads. Some money for SEO. A few emails. Maybe a new brochure.

Suddenly, the company is spending thousands of dollars every month without a clear idea of what all that activity is supposed to accomplish.

Your budget should follow your strategy, not the other way around.

That’s why at Silesky Marketing, strategic planning comes before deciding which tactics to use. We evaluate the business, target audience, competitive landscape, current marketing, growth objectives and opportunities before recommending where the money should go.

Sometimes the answer is more advertising.

Sometimes it’s a better website.

Sometimes it’s SEO.

And sometimes the smartest recommendation is to stop spending money on something that isn’t producing results.

Your Website Still Deserves Investment

Businesses sometimes treat their website as a one-time expense. Build it, launch it and move on.

That mindset is increasingly outdated.

Your website is the center of your marketing ecosystem. Someone might discover you through Google, social media, an AI search tool, an advertisement, a referral or even a business card, but there’s a good chance they will eventually visit your website before contacting you.

Your website needs to explain what you do, establish credibility and make the next step obvious.

It also needs to perform technically. That means speed, mobile usability, strong content, conversion paths and a solid search foundation.

At Silesky Marketing, we approach website development as part of a larger marketing system rather than simply a design project.

SEO Isn’t Going Away. Search Is Getting Bigger.

Marketing budgets in 2027 also need to account for a major change in how people find businesses.

Google still matters enormously, but traditional search is no longer the entire picture.

Consumers are increasingly getting answers through AI-powered search experiences and tools. That means businesses need content that can be understood by both traditional search engines and emerging AI discovery platforms.

Your SEO investment should therefore extend beyond adding keywords to a website.

It should include strong website architecture, useful original content, technical SEO, local search optimization when appropriate and content that directly answers the questions prospective customers are asking.

Our content development approach is built around exactly that idea: write for the questions buyers actually have, not simply to fill a content calendar.

Don’t Let AI Become a Budget Distraction

AI will undoubtedly be part of marketing budgets in 2027.

Gartner reported that CMOs allocated an average of 15.3% of their marketing budgets to AI initiatives in 2026. But Gartner also found that only 30% reported having mature or fully developed AI readiness capabilities.

That’s an important distinction.

Buying AI tools doesn’t automatically create better marketing.

AI can make teams faster. It can help analyze information, accelerate research, generate ideas and automate repetitive work. But it doesn’t replace a clear brand, strong positioning, original thinking or an understanding of your customer.

Before adding another AI subscription to your 2027 budget, ask a simple question:

What business problem is this actually solving?

If you don’t have a good answer, save the money.

Don’t Confuse Social Media Activity With Marketing Strategy

Social media absolutely deserves a place in many marketing budgets. But posting three times a week simply because someone told you that you should isn’t a strategy.

The real questions are: Who are you trying to reach? What do you want them to know? What content will make them pay attention? What should they do next?

At Silesky Marketing, our approach to social media management focuses on building community, trust and brand recognition rather than simply maintaining a posting schedule.

That distinction matters when you’re deciding where to invest.

Measure What the Money Is Doing

Your 2027 marketing budget shouldn’t be carved in stone on January 1.

It should be reviewed throughout the year.

Which campaigns are generating qualified leads? Where is website traffic coming from? Are organic search rankings improving? Are more people searching for your business by name? Which advertising channels are producing conversions? Are prospects becoming customers?

Gartner’s 2026 research shows just how much pressure marketing leaders are under to produce growth while working with constrained budgets. That makes measurement and prioritization even more important.

Marketing shouldn’t simply create activity.

It should help move the business forward.

So, What Should You Spend in 2027?

Start with a realistic percentage of revenue. Typically the industry recommends between 7 and 10% of your gross revenue. But don’t stop there. Look at where your company is today and where you want it to be 12 months from now. Then build the budget around what it will actually take to close that gap.

A company focused on maintaining its position will have very different needs from one pursuing aggressive growth. A business entering a new market may need significant investment in branding, web development, advertising and awareness. An established local company may get a better return by concentrating on local SEO, content, reputation and customer retention.

The goal isn’t to spend the most. It’s to make sure every dollar has a job. That’s why we believe strategy comes first.

Before you increase your marketing budget for 2027, take a hard look at what you’re already spending, what’s working, what’s not and where the biggest opportunities are.

At Silesky Marketing, we help businesses turn those questions into a clear marketing roadmap, measurable priorities and a budget designed around where the business actually wants to go.

Because the smartest marketing budget isn’t based on what everyone else is spending.

It’s based on what you’re trying to accomplish.

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Aizaz Ul Hassan

Sr. Graphic Designer & Web Developer

Aizaz has been the driving force behind Silesky’s web development for over 5 years. As both a graphic designer and UI/UX developer, he brings a rare mix of technical precision and creative clarity to every project. What sets Aizaz apart is his ability to understand and interpret the assignment—no extra hand-holding, just sharp instincts and calm professionalism. When timelines are tight and expectations are high, Aizaz is the teammate you want in your corner.

Creative and detail-oriented, Aizaz builds clean, modern websites that marry style with substance. From intuitive flows to scalable layouts, his work consistently delivers digital experiences that perform as well as they look. With every project, Aizaz ensures the design feels effortless for users and does the heavy lifting for the brand.

Off the clock: It's an ongoing mystery.

John Sindorf

Director of Strategic Alliances

John believes most businesses don’t need more vendors, they need the right strategic partners.

With decades of experience helping small and mid-sized organizations grow, John specializes in connecting business leaders with the expertise they need to overcome challenges, strengthen operations, and scale with confidence. Whether the conversation centers on sales strategy, marketing, AI, or operational efficiency, his focus is always the same: identifying the right solution for the business, not simply adding another service provider.

Known for his relationship-first approach, John builds partnerships rooted in trust, practical guidance, and measurable outcomes. He helps business owners simplify complex decisions, align the right resources, and spend less time managing vendors and more time leading the businesses they’ve worked so hard to build

Off the clock: You’ll likely find John networking over coffee, strengthening relationships, and proving that the best business opportunities still begin with genuine conversations.

Kiki DeVane

Marketing Operations Manager

From Capitol Hill to the Content Calendar. The Filibuster Didn't Make the Cut.

Kiki started her career trying to change the world through legislation. She pivoted to marketing after realizing a well-built website could do it faster. What followed was a stretch across event marketing, federal communications, and sponsored content for some of the world's most recognizable brands, enough range to make her what the industry calls a utility player, which mostly means she can do the thing no one else wants to do and make it look intentional.

At Silesky Marketing, her job is to make sure the right work gets to the right person at the right time. When something tries to fall through the cracks, she's already caught it.

Off the clock: Somewhere between a passport stamp and a paintbrush.

Meital Abraham

Market Expansion & Social Media Strategist

Compulsive Jazz Hands

Meital studied fine art, advertising, and philosophy before adding stand-up comedy to the mix, which is either a very strange combination or the exact right training for social media strategy. Comedy teaches you to read a room, adapt to shifting audience energy, and deliver a punchline precisely when it matters. Misread a crowd on stage, and you get silence. Misread it in an algorithm, and it shows in the metrics. Her first corporate accounts were a cemetery, a law firm, and an IT company. She figured them all out.

Off the clock: Currently finding new ways to bedazzle herself and dazzle the audience.

Mya Stengel

Content Developer

Organizing Her Bookshelf = Organizing Her Life

Mya spent years working on her written prose only to pivot into writing for film in Hollywood. She went as far as to work in the film development department at Blumhouse before transitioning to content marketing. What she brought from the development room is the Hollywood standard. Never negotiate. Every draft has a skeleton before it gets a voice. To Mya, every client is a new protagonist to study. Her job is to entirely disappear into a brand's architecture, making the final copy sound authentically like them.

Off the clock: She's in the movie theatre, patiently waiting for Nicole Kidman to remind her that heartbreak feels good in a place like this.

Ashelin Walker

Digital Growth Strategist

The Human Embodiment of a Zen Garden

Before Ashelin was in Google Analytics, she was managing a fast-paced cafe. When the POS system crashed 20 minutes before doors opened, she rebooted it, rerouted the payment terminal, and had the register running before the first customer arrived. That same instinct drives every digital campaign she manages at Silesky Marketing today. She tracks algorithmic shifts, adjusts budgets in real time, and ensures clients see the concrete numbers behind every strategic decision.

Off the clock: She’s likely baking… What? it is a mystery she refuses to solve for us.

Susi Silesky

Founder & Brand Architect

Thinks in two languages. Solves problems in one.

Susi has spent more than 30 years helping clients see what's possible, and clearing the path to get there. She founded Silesky Marketing in 1996 after her early career in Paris, where she worked as the American liaison at S3C Groupe de Communication Souham, working on large-scale marketing campaigns for Sara Lee, Gillette, and Tiffany and Co.

Helping American brands navigate language and cultural differences taught her something that's shaped every engagement since: businesses often struggle to see themselves the way customers do. When she's not in client strategy, she's watching French films, which after thirty years of brand voice reviews pulls her out of English completely.

Off the clock: Scouting for strangers…or as she calls them, her new best friends.