Marketing budget for small businesses: how much and what for?

In short: a marketing budget follows the goal, not a rule of thumb. The well-known percentages come from large or US companies and hardly suit a small business. Separate one-off costs for the foundations, i.e. look, website, vehicle graphics and sign, from ongoing costs for upkeep, content and advertising. And count your own time honestly, because much of what costs nothing costs time.

How the budget of a single campaign is planned is covered in the article plan an advertising campaign. This one is about the annual budget. We deliberately don't give our own prices, because they depend on scope. As of October 2026.

What the well-known percentages say, and what they don't

Online you often read that a company should spend a certain percentage of revenue on marketing. The most reliable figures come from two surveys:

• Gartner, CMO Spend Survey 2026: marketing budgets are at 7.8 percent of revenue. Around 400 marketing leaders in North America and Europe were surveyed, mostly from companies with more than one billion US dollars in revenue (Gartner, press release 2026).
• The CMO Survey 2026: 9.0 percent of revenue for US companies, the lowest value in several years. According to the report, the share is higher for small companies (The CMO Survey 2026, PDF).

For a plumber in Mödling or a joinery in Baden these figures say little. We found no public survey for small Austrian businesses. And a percentage of revenue says nothing about whether the money is well spent.

From goal to budget

Better is the reverse approach: what should marketing achieve this year, and what does it take?

• Set the goal: for example more jobs in one service, new apprentices, becoming better known in a new region. How to phrase goals is covered in the article develop a marketing strategy.
• Derive measures: what is needed to make the goal achievable? A service page, vehicle graphics, ads in the season?
• Estimate costs: get quotes, estimate time honestly.
• Check: does the total suit the size of the business? If not, prioritise measures rather than doing all of them half-heartedly.

What costs nothing except time

Some of the most effective tools for local businesses are free:

• Google Business Profile: free according to Google (Business Profile Help). Guide: create and maintain a Google Business Profile.
• Google Search Console: a free service from Google (Search Console Help). Guide: set up Google Search Console.
• LinkedIn company page: free according to LinkedIn. More in the article LinkedIn company page.
• Instagram profile: creating it costs nothing. More in the article Instagram for local businesses.

The cost here lies in time: half an hour a week for photos and reviews is realistic; a social media channel needs more. Count this time in, otherwise the budget looks smaller than it is.

One-off costs: the foundations

Some expenses arise once and then work for years. They belong at the start:

• Look: logo, colours, typeface, the basis for everything else. More in the article corporate design.
• Website: with one page per service and a clear way to get in touch.
• Vehicle graphics and sign: advertising space seen every day, without ongoing click costs. More under vehicle graphics and signage.
• Printed matter: business cards, letterhead, flyers in the same look.

These items are higher in one year and low in the following years. So don't plan them as an annual sum but as an investment.

Ongoing costs: upkeep and advertising

• Upkeep and content: your own time or outside support, for website, profile and social media.
• Paid advertising: ads on Google or social media, print ads, posters. When ads pay off and how the Google Ads budget works is covered in the article SEO or Google Ads.
• Trade fairs and events: stand rent, trade show graphics, working time. To make it pay off: trade fair follow-up.
• Tools: for example a newsletter program or web hosting.

Tax and funding: briefly mentioned

In Austria, advertising expenses are generally a business expense: under section 4(4) of the Income Tax Act, these are expenses caused by the business (RIS: section 4 EStG, German). There are limits, for example representation expenses are not deductible, and hospitality for advertising purposes only half and under conditions (RIS: section 20 EStG, German). Clarify the details with your tax adviser; this section is not tax advice.

For advice on digitalisation and online marketing there was the KMU.DIGITAL funding programme, which according to the Chamber of Commerce ends with 2026. More in the article DIY marketing or an agency?

A tiler plans his year

The case is constructed, but typical. A tiler with three employees wants more bathroom renovations and fewer small repairs. Until now he has done marketing on the side, without a plan. For the coming year he sets three items:

• One-off: a dedicated page for bathroom renovation with photos and process, and new lettering for the van, which until now only carries the logo.
• Ongoing, free: every Friday two photos into the Google profile and replies to reviews, half an hour a week.
• Ongoing, paid: six weeks of ads in spring leading to the new page, with a fixed daily budget.

At the end of the year he compares: how many enquiries for bathroom renovations came in, from where, and what did it cost? Then he decides what stays next year.

Our view

The question of the right budget is really the question of the right priorities. We often see businesses putting a lot of money into ads while the vehicle is unlettered and the Google profile incomplete. Foundations first, then advertising, and measure everything: how is covered in the article measuring marketing success. How the building blocks fit together is shown in our overview marketing for small businesses.

Checklist

• Is the goal for the year phrased in one sentence?
• Are free tools such as Google profile and Search Console set up?
• Are one-off and ongoing costs planned separately?
• Is your own time counted honestly?
• Do the foundations come before paid advertising?
• Is there a date on which you compare costs and enquiries?
• Tax questions clarified with your tax adviser?

Frequently asked questions

What percentage of revenue should a small business spend on marketing?

There is no reliable figure for small Austrian businesses. Well-known studies refer to large or US companies: Gartner gives 7.8 percent of revenue for 2026, mainly for large corporations; The CMO Survey 9.0 percent for US companies. For a small business it makes more sense to derive the budget from the goal and to separate one-off and ongoing costs.

What can I do in marketing for free?

More than many think: the Google Business Profile is free, as are Google Search Console and a LinkedIn company page. Creating an Instagram profile costs nothing either. The cost here lies in the time that upkeep and content require.

Is advertising tax-deductible?

In Austria, advertising expenses are generally a business expense, because under section 4 of the Income Tax Act business expenses are expenses caused by the business. There are limits, for example for representation and hospitality. Clarify the details with your tax adviser; this article is not tax advice.