How much should a business spend on marketing?
A practical method for setting a test budget from revenue goals, margins, conversion rates and the cost of learning.
Published 24 September 2026 · By Naveed Murtaza
Work backward from the outcome
Start with the number of new customers required, their gross value and an affordable acquisition cost. Estimate the leads and visits needed using current conversion rates, then label assumptions clearly.
Separate foundations from media
Budget for research, landing pages, creative, tracking and follow-up as well as advertising. Media cannot compensate for a broken conversion path.
Release budget in stages
Fund an initial learning period, define decision thresholds and increase spend only when conversion quality and operational capacity support it.
