Marketing budget: how to split spend by objective, channel, and stage

Why your marketing budget should follow objectives, not channels

Many teams start with channels and then backfill targets. A better approach is to fund the outcomes the business needs, then choose the channels that deliver them. This helps you protect brand building, resource near term acquisition, and keep room for retention and testing without constant firefighting.

This playbook shows you how to set a realistic envelope, split spend by objective, and translate that split into a channel plan you can defend. Pair it with your one page strategy and quarterly priorities so money matches focus.

Step 1. Set the budget envelope

Pick one method and be explicit. Common options include revenue percentage, a zero based build tied to targets, or a hybrid. Founder led and mid market companies often start between 5 and 12 percent of revenue, then adjust by margin, category norms, and growth ambition. Whatever you choose, write it down so the rule is clear.

For ranges and examples, review HubSpot’s guidance on marketing budgets and effectiveness discussion in Marketing Week.

Step 2. Split by objective first

Divide the envelope by what you need to achieve this quarter and year. A simple starting point for many growing companies is a 60, 30, 10 split across awareness, acquisition, and retention or customer marketing. Adjust for seasonality, product mix, and whether you are defending or entering markets.

• Awareness. Brand building and future demand, for example video, sponsorships, PR, and top of funnel content.
• Acquisition. Near term demand capture such as paid search, lead gen, and partnerships.
• Retention and value. CRM, onboarding content, upsell, and customer marketing.

To put step 2. split by objective first into practice, use the steps above: clarify the outcome, choose 1–3 channels, set a test budget, and track weekly so you can double down on what works.

Step 3. Translate objectives into channel allocations

Within each objective, choose the few channels that fit your audience, message, and capacity. Keep the core mix small and fund it properly. Add one test line to learn without distracting the team.

• Awareness example. 50 percent video and paid social, 30 percent PR and partnerships, 20 percent content assets for owned channels.
• Acquisition example. 40 percent paid search, 30 percent high intent content, 20 percent retargeting, 10 percent partner or affiliate.
• Retention example. 60 percent CRM and lifecycle, 30 percent customer education content, 10 percent community or events.

For a channel selection framework, use marketing channels: choose the right mix for your stage.

Step 4. Ring fence a test fund

Allocate 10 to 15 percent of the total budget to controlled tests. Write simple entry and exit criteria so experiments stay disciplined. For example, a new creator partnership enters at a capped spend with a specific outcome target. It exits when the target is met or the time box ends.

Step 5. Protect brand investment

To put step 5. protect brand investment into practice, use the steps above: clarify the outcome, choose 1–3 channels, set a test budget, and track weekly so you can double down on what works.

Step 6. Build your quarterly budget table

1. Rows for objectives. Awareness, acquisition, retention or value, and a test line.


2. Columns for total, then the channels within each objective.


3. Add monthly phasing to respect seasonality and launch plans.


4. Assign owners for each line. Accountability keeps spend honest.

Connect this to your plan in one page marketing strategy and cadence in build a simple marketing operating rhythm.

Step 7. Define reallocation rules

Money should move when data justifies it. Allow the marketing lead to shift up to 15 percent within quarter between channels if KPIs demand it. Escalate above that to founder or finance. Record the thresholds and the decision window, for example every Wednesday at 11.00.

Step 8. Measure contribution, not just clicks

Use a simple contribution view by objective. Pair platform data for direction with CRM sourced revenue for truth. Where volume allows, run incrementality tests. When it does not, use time splits or audience holdouts. Keep the method consistent within the quarter.

To put step 8. measure contribution, not just clicks into practice, use the steps above: clarify the outcome, choose 1–3 channels, set a test budget, and track weekly so you can double down on what works.

Common budget traps to avoid

• Channel led planning. Fund the objective first, then pick channels.
• Cutting brand to hit a short term target. It hurts next quarter’s pipeline.
• No test fund. Learning stalls and performance plateaus.
• Too many channels. Spread kills effectiveness.
• Unclear reallocation rules. Decisions get political and slow.

Final checklist

• Envelope set with a written rule.
• Split by objective agreed and visible.
• Channel allocations that match audience and message.
• Test fund ring fenced with criteria.
• Brand minimum protected.
• Reallocation thresholds documented.
• Contribution measurement in place.