SaaS Marketing Budget: Spend Benchmarks for 2026

Setting a SaaS marketing budget can feel like guesswork, especially when you are under pressure to grow revenue without burning cash. Too little spend slows momentum, too much spend without a plan drains runway fast.

The truth is there is no single “correct” number. A strong SaaS marketing budget aligns with your growth goals, stage of maturity, customer acquisition costs, and competitive landscape. Benchmarks are useful, but only when you understand how to apply them to your situation.

This guide breaks down realistic SaaS marketing budget benchmarks for 2026, the models companies actually use to set spend, how to allocate budgets intelligently, and how to scale investment without losing efficiency.

What Is the Average Marketing Budget for SaaS Companies in 2026?

The average marketing budget for B2B SaaS companies typically ranges from 8% to 10% of Annual Recurring Revenue (ARR), but this median figure masks considerable variation based on company size, growth stage, and funding status.

• Early-stage startups focused on rapid growth may spend 20% to 40% or more of revenue on marketing as they build brand awareness and acquire customers aggressively.
• Scaling companies usually allocate between 10% and 30% of revenue to marketing, balancing growth with efficiency.
• Mature SaaS businesses may reduce marketing budgets to 5%–15% of revenue, relying more on organic growth and existing customer referrals.
• Venture-backed startups tend to spend significantly more – up to 58% more on marketing as a share of revenue – compared to bootstrapped companies, reflecting growth acceleration strategies.

Your optimal marketing budget depends largely on your company’s current ARR, market competition, customer acquisition costs, and growth ambitions. Using the average as a benchmark is a helpful starting point but not a strict rule.

Factors to Consider Before Setting Your SaaS Marketing Budget

Before locking in numbers, step back and answer a few foundational questions.

1. What are you trying to achieve right now?

Your marketing budget should directly support specific goals such as increasing brand awareness, generating pipeline leads, accelerating customer acquisition, or expanding into new markets. Clearly defining these goals will help you prioritise spend on tactics that deliver measurable impact.

2. What is your financial reality?

Understanding your current ARR or revenue anchors your budget in financial reality. It ensures sustainability by aligning spend with your cash flow and funding availability.

3. Where are you in your SaaS journey?

A company just past product-market fit will budget differently compared to a mature SaaS wielding an established sales engine. Early-stage firms often invest more in brand building and demand generation for market penetration, while later-stage companies may focus on retention and efficiency.

Popular SaaS Marketing Budgeting Models Explained

Several common methodologies can help determine the right marketing spend for your SaaS business:

Percentage-of-Revenue Method

Allocating a set percentage of revenue (typically 8%–20%) to marketing is straightforward and widely used. Depending on growth targets, 10% is a safe median, 15%–20% suits aggressive growth, and 20%–40% may be required at early or hyper-growth phases.

Growth Delta Model

Calculate the difference between your current and target revenue (growth delta), then allocate about 40% of that delta to marketing investment. This approach ties spend directly to ambition.

Customer Acquisition Cost (CAC) Based Model

Estimate the number of new customers needed to hit revenue goals and multiply by your target CAC. This model is highly focused on unit economics and sales funnel efficiency.

Lifetime Value (LTV) Ratio Approach

Aim for an industry-standard LTV:CAC ratio of around 3:1. Calculate your maximum CAC from customer lifetime value, then budget marketing spend accordingly to acquire customers profitably.

How to Allocate Your SaaS Marketing Budget Effectively

Effective allocation within your overall budget can unlock greater returns. Common areas of focus include:

People and Team

About 45%–55% of the marketing budget typically supports your internal team and contractors. Investing in skilled strategists, content creators, and digital marketers is crucial to executing your strategy.

Demand Generation & Paid Advertising

Allocate 15%–20% towards paid media such as PPC, LinkedIn Ads, and targeted outbound campaigns to drive qualified leads and pipeline growth. Consider partnering with a b2b Google Ads agency for effective paid advertising management.

Content Marketing

Spending 5%–7% on content creation, including blogs, ebooks, and video, builds long-term inbound channels. Early-stage startups may dedicate more here (up to 40%) to fuel brand awareness and SEO traction.

Martech, Tools & Software

Reserve 4%–6% for marketing technology, CRM platforms, analytics tools, marketing automation, and SEO management software, which enable efficiency and measurement.

Branding & Product Marketing

Approximately 8%–10% supports brand-building initiatives, messaging, sales collateral, and customer advocacy programs to enhance market positioning.

Events and PR

Optionally, 3%–5% funds conferences, webinars, PR outreach, and sponsorships to boost visibility and community connection.

Balancing Short-Term Wins with Long-Term Growth

While demand generation tactics often yield immediate leads, sustaining growth requires brand building and customer engagement investments that compound over time. Consider budgeting about 70% towards direct response channels and 20%–30% towards brand awareness and retention efforts.

Common Marketing Budget Mistakes to Avoid

• Setting Budgets Without Strategy: Avoid allocating spend without clearly defined goals and priorities.
• Ignoring ROI and Data: Track key metrics like CAC, CPL, and pipeline contribution rigorously to optimise spend.
• Overreacting to Market Fluctuations: Maintain steady investment, adjusting smartly rather than cutting blindly in downturns.
• Neglecting Marketing Operations: Invest in training, tools, and clean data to improve efficiency and results.
• Copying Benchmarks Blindly: Tailor budgets to your company’s unique stage and product-market fit.
• Focusing on Vanity Metrics: Track meaningful KPIs linked to revenue, not just traffic or social followers.

Making The Most Of Your SaaS Marketing Spend

When budgets are limited and traction is still early, every decision matters. Creating demand is especially challenging when you are entering an undefined niche, search volume is low, and there is little or no existing customer base to lean on.

In this video, Ryan puts Jess Chillman to the test with a real-world SaaS marketing scenario. The challenge is simple but tough: how do you generate demand and leads on a £10k monthly budget for a brand-new SaaS product with no clear market signals yet?

On A Tight Budget?

For bootstrapped startups or those with limited funds (e.g., £500–£2,000/month), focus on cost-effective organic channels like LinkedIn networking, content marketing, and SEO basics. Use hyper-targeted paid ads sparingly to boost key campaigns. Align sales and marketing closely to maximise conversion from every lead.

The video below walks through practical ways to stretch a small SaaS marketing budget.

How to Scale Marketing Spend as Your SaaS Grows

As ARR grows, marketing budgets should scale proportionally while improving efficiency. Start with aggressive investment early to capture market share, then optimise channels to reduce CAC over time. Maintain flexibility to increase spend on channels that demonstrate strong returns.

Final Thoughts: Ready to Build Your Strategic SaaS Marketing Budget?

At Rocket SaaS, we are a b2b SaaS marketing agency that understands the unique pressures SaaS companies face with tight budgets, competitive markets, and high growth expectations. Our dedicated, in-house marketing squad acts as your seamless extension, combining strategy, paid media, content, and sales alignment, to accelerate your ARR without the overhead of multiple senior hires.

Book a free strategy call today, and let’s build your SaaS growth engine together.