How Much Should You Spend on Marketing in 2026? A Complete Budget Planning Guide
One of the most common questions we hear from brand founders and marketers is: How much should I spend on marketing? While there's no one-size-fits-all answer, it's crucial to plan your marketing budget carefully—especially as we approach 2026. Our expertise in working with leading brands and retailers allows us to guide you in making smart, informed decisions for your marketing budget planning and investments.
Tip #1: Calculate Your Customer Lifetime Value (CLV) Before Setting Marketing Budgets
Understanding your customer lifetime value is essential to determining how much you can spend to acquire a new customer. CLV is a key metric for planning your marketing spend efficiently and calculating marketing budget allocation.
Tip #2: Prioritize Customer Retention to Reduce Marketing Costs
Did you know that acquiring a new customer can cost five times more than retaining an existing one? Prioritize customer retention strategies to maximize your marketing ROI in 2026.
Tip #3: Avoid Shiny Object Syndrome in Marketing Strategy
Just because other brands are using TikTok Shop or partnering with micro-influencers doesn't mean it's right for your business. Focus on marketing tactics that align with your brand's unique goals and audience.
Tip #4: Use Data-Driven Marketing Decisions, Not Personal Preferences
Don't let personal opinions drive your marketing decisions. For instance, if you don't like receiving SMS marketing or frequent emails, that doesn't mean your customers feel the same way. Let the data guide your marketing strategy, and make sure you follow the numbers!
Tip #5: Marketing Agency vs. Full-Time Employee: Cost Comparison
Is it more cost-effective to hire a marketing agency or a full-time employee? Consider the total costs of recruiting, onboarding, and compensating an employee versus partnering with an agency that offers comprehensive expertise for a similar or lower cost.
Key Questions to Ask as You Plan for 2026
You’re likely starting to think about 2026, and how you’d like to grow your business. Whether you’ve planned out a budget or not, think about the following questions:
Which marketing channels delivered the best ROI and helped you meet your goals?
How reliable is your data for measuring performance? Can you leverage other data sources for a clearer picture?
Which experiments and testing worked well this year, and how can you scale those efforts?
Which part of your marketing funnel—awareness, acquisition, or retention—needs more attention in 2026?
Who are your most profitable customers, and how can you target more like them?
What stage of growth is your business in, and how much of your revenue should be allocated to marketing accordingly?
Ready to Optimize Your 2026 Marketing Budget?
Through our agency work supporting high-growth brands, our founder community and our retail marketing colleagues - we know a thing or two about what marketing channels and tactics successful CMOs, marketing leads, founders and CEO's are investing in, and how they're planning their budgets for next year. If you are struggling to determine the best way to calculate your marketing budget and spend strategically next year, we can help. Book a free marketing strategy consultation to get started.