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Startup Marketing Answers

How Much Do Startups Spend on Marketing? (2026)

Two benchmarks anchor the answer: 8% of ARR for private B2B SaaS companies per SaaS Capital, and 7.8% of overall revenue across industries per Gartner. Here is what those numbers mean by stage.

Updated August 2026
8% of ARR, SaaS Capital 20267.8% of Revenue, Gartner 2026By Startup Stage

Written for founders setting a marketing budget for the first time, or checking their current spend against an industry benchmark.

TL;DR: The Short Answer

Most startups spend somewhere between 8% and 20%+ of revenue or funding on marketing, depending heavily on stage. Mature private B2B SaaS companies spend a median of 8% of ARR per SaaS Capital's 2026 survey, cross-industry marketing budgets sit at 7.8% of company revenue per Gartner's 2026 CMO Spend Survey, and early-stage startups routinely run well above both since their revenue base is still small.

Two data points anchor this question. SaaS Capital's 2026 survey, its 15th annual, polled over 1,000 private B2B SaaS companies in March 2026 and found a median marketing spend of 8% of ARR, unchanged from the prior year. Separately, Gartner's 2026 CMO Spend Survey, fielded January through March 2026 among 401 marketing leaders, found overall marketing budgets across all industries sitting at 7.8% of company revenue, up only marginally from 7.7% in 2025 and still part of a plateau Gartner says has held since 2022.

Neither figure is stage-specific. Both are medians across companies of very different sizes and maturity, so an early-stage startup with little or no ARR yet will not see a meaningful percentage from either number. That is the gap this page fills: the two sourced benchmarks, plus how spend commonly gets discussed by stage below them.

The Two Benchmark Numbers, Side by Side

Most "how much do startups spend on marketing" content picks one statistic and stops. The two most citable, currently sourced figures actually measure different things, a SaaS-specific base against ARR, and an all-industry base against total company revenue, so it is worth seeing them next to each other rather than in isolation.

SaaS Capital, 2026

8%

Median marketing spend as a percent of ARR, private B2B SaaS companies

15th annual survey, conducted March 2026, 1,000+ private B2B SaaS respondents. The figure is unchanged from the prior year.

View the SaaS Capital benchmark report

Gartner, 2026 CMO Spend Survey

7.8%

Marketing budget as a percent of overall company revenue, across industries

Fielded January through March 2026 among 401 CMOs and senior marketing leaders, mostly at companies with over $1 billion in revenue. Up only marginally from 7.7% in 2025, part of a plateau Gartner says has held since 2022 and sits 18% below the mean budget share of four years ago.

View the Gartner 2026 press release

For a walkthrough of how SaaS Capital's spending benchmarks break down by category, this video from consultant Mario Peshev covers the same underlying report the 8% of ARR figure above comes from.

Marketing Spend by Startup Stage

Neither SaaS Capital nor Gartner breaks its headline figure out by startup stage specifically. The ranges below for pre-seed through Series A are the ranges most commonly repeated by startup operators and marketing consultants, not a single named benchmark study, so they are presented as rules of thumb rather than hard data. The growth-stage row is where the sourced 8% of ARR figure applies most directly.

StageCommonly Cited RangeNotes
Pre-seed / Idea StageLittle to no formal budgetSpend is usually founder time plus a small ad hoc budget for a landing page, a domain, and early outreach. There is rarely enough revenue to express spend as a percentage yet.
SeedCommonly cited at 10 to 20% of the funding raisedA widely repeated operator rule of thumb for early go-to-market testing, not a single named benchmark study. Actual spend still tracks the size of the round more than a percent of revenue, since ARR is often near zero.
Series ACommonly cited at 15 to 25% of ARROnce there is a repeatable early motion, budgets shift toward scaling the channels that already work. Again, this is a frequently cited operator range rather than a single benchmark report figure.
Growth stage (Series B and later)Compresses toward the 8% ARR benchmarkAs ARR grows, marketing spend as a percentage of it typically shrinks even as the dollar amount rises. SaaS Capital's 8% of ARR median sits at the mature end of this curve.

Finding the right channel matters as much as the size of the budget. Tools like MediaFast help early-stage founders find and post in the Reddit communities where their exact buyers already hang out, which stretches a small early budget further than untargeted paid spend.

Why SaaS Capital's Number and Gartner's Number Are Not the Same Measurement

8% and 7.8% look almost identical, close enough that it is tempting to treat them as one confirming number. They are close, but they measure different populations against different revenue bases, which matters if you are trying to benchmark your own company against either one.

SaaS Capital's 8% of ARR

Measured only against private B2B SaaS companies, and specifically against Annual Recurring Revenue rather than total revenue. A subscription business with fast-growing ARR will see this percentage move differently than a company with lumpy, non-recurring revenue.

Gartner's 7.8% of Company Revenue

Measured across every industry the CMO Spend Survey covers, from consumer products to manufacturing to pharma, against total company revenue, not a recurring-revenue base. Gartner's 2025 wave of the same survey showed real variation underneath that headline number, with consumer products reporting closer to 9.7% and half of CMOs at 6% or below, and the survey skews toward large enterprises, most reporting over $1 billion in revenue.

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What Counts as Marketing Spend

Two companies can report wildly different percentages while spending the same actual dollars, simply because they define "marketing spend" differently. Before comparing your own number against a benchmark, check what the benchmark is counting.

Included

Paid ads and paid search
Content, SEO, and organic distribution
Marketing headcount and contractor pay
Marketing tools and software subscriptions
Events, sponsorships, and partnerships
Brand and creative production

Often excluded or counted separately

Sales headcount and commissions
Customer success and onboarding
Product development
General G&A overhead
Founder time not tied to a specific campaign

Why the Range Is So Wide

A company with $50,000 in ARR spending $10,000 on marketing is at 20% of ARR. A company with $10 million in ARR spending $800,000 is at 8%. Both numbers are real, and both are consistent with the idea that percentage spend compresses as ARR scales, even though the second company is spending 80 times more in absolute dollars.

Funding status widens the range further. SaaS Capital's survey data shows equity-backed companies spend roughly double what bootstrapped companies spend as a percent of ARR, since venture funding is explicitly meant to be deployed into growth rather than preserved as profit. A bootstrapped startup and a well-funded startup at the same ARR can reasonably run very different marketing budgets and both be making a defensible choice.

What Our Own Reddit Data Shows About Stretching a Budget

The benchmarks above answer how big a marketing budget should be. They do not answer how far a given dollar goes once it is spent, and that second question is often the bigger lever for an early-stage startup with a small budget to begin with. MediaFast analyzed our own dataset of over 10,000 Reddit posts to see when posts actually get the most upvotes and comments, and the timing gap between the best and worst posting windows is large enough to change how many people ever see a post at all.

That is a budget question, not just a growth-hacking one. A startup spending 10 to 20% of a seed round on marketing gets more out of that money by posting at the right time in the right subreddit than by increasing spend on the same channel. See the full breakdown, including the specific hours and days that performed best across the dataset, on our best times to post on Reddit page.

Do This, Not That, When Using These Benchmarks

A quick reference for applying the 8% and 7.8% figures correctly, rather than treating either one as a universal rule.

Do

Use SaaS Capital's 8% of ARR as the anchor once your company has meaningful recurring revenue, not before.
Budget pre-revenue and early-revenue spend as a percent of your funding raised or a fixed monthly cap tied to runway.
Check whether a benchmark counts headcount and tools before comparing your own spend to it.
Expect your own percentage to run above 8% at seed and Series A, and to compress toward it as ARR scales.
Re-check your target percentage every funding stage, since SaaS Capital and Gartner both re-survey annually.

Not That

Do not apply the 8% of ARR figure to a company with near-zero ARR, it was measured on mature private SaaS companies.
Do not treat Gartner's 7.8% as SaaS-specific, most of its 401 respondents run large, non-startup companies over $1 billion in revenue.
Do not compare a headcount-inclusive benchmark to a media-only number and call it apples to apples.
Do not set a budget once and leave it, spend as a percent of ARR compresses as revenue scales.
Do not assume bootstrapped and equity-backed companies should spend the same percentage, SaaS Capital shows equity-backed spend roughly double on marketing.

Questions to Set Your Own Number

Benchmarks are a starting reference, not a target. These questions turn the 8% and 7.8% figures into a number that actually fits your company.

Do you have meaningful ARR yet, or should this quarter's budget be set as a percent of funding or runway instead of a percent of revenue?

What does "marketing spend" mean in your own budget: media only, or media plus headcount and tools?

Are you bootstrapped or equity-backed, and does that change how aggressively you should be spending relative to the 8% median?

Which one or two channels are already producing signups or pipeline, and is your current budget protecting them first?

When did you last revisit this number? A budget set at your last funding stage may no longer fit your current one.

How to Build Your Own Marketing Budget

Five steps for turning the benchmarks above into an actual number for your company, roughly in order.

  1. 1

    Start from your current stage, not an industry average

    A single "startups spend X%" number hides enormous variance by stage. Anchor on the stage band closest to yours, then adjust for your specific growth goals rather than copying a headline figure.

  2. 2

    Separate revenue-percent budgeting from runway-based budgeting

    Pre-revenue and early-revenue startups usually cannot budget as a percent of ARR because ARR is near zero. Budgeting as a percent of the funding raised, or as a fixed monthly cap tied to runway, is more realistic until there is meaningful recurring revenue.

  3. 3

    Decide what counts as marketing spend before comparing yourself to a benchmark

    Benchmarks differ on whether they include marketing headcount, tools, and events, or only media spend. Compare like for like, or the percentage you calculate for your own company will not be comparable to the source you are citing.

  4. 4

    Set a floor for the channels already proven to work

    Whatever the top line percentage, protect budget for the one or two channels already producing signups or pipeline before funding new experiments.

  5. 5

    Revisit the number every funding stage, not just once a year

    The stage-band data above shows spend as a percent of ARR typically compresses as a company matures. A budget set at seed stage is not the right budget at Series A.

Once you have a budget number, the harder question is often which channel to point it at first. The marketing ROI calculator and the SaaS metrics calculator can help model expected return before you commit spend to a channel.

4 Common Mistakes When Using These Numbers

Each of these turns a useful benchmark into a misleading one.

Quoting one percentage as if it applies to every stage

The 8% and 7.8% benchmarks below are useful anchors, but neither one was measured on early-stage, pre-revenue startups specifically. Applying a mature-company benchmark to a six-month-old startup will usually understate what is actually needed.

Mixing revenue-percent and funding-percent budgeting

Some sources describe budgets as a percent of ARR, others as a percent of a funding round. Treating these as interchangeable produces a number that does not mean what it appears to mean.

Ignoring what is and is not counted in "marketing spend"

A benchmark that includes marketing headcount will read much higher than one that counts media spend alone. Always check the definition before comparing your own number against a published figure.

Treating a survey median as a target

A median, like SaaS Capital's 8% of ARR, describes where the middle of the sample sits, not the "correct" amount for any individual company's growth goals.

Common Misconceptions

"Startups should spend a fixed percent of revenue on marketing, full stop."

Both benchmark surveys report a median across companies of very different sizes and maturity. A median is a description of the sample, not a prescription for any individual company's growth goals.

"8% and 7.8% basically confirm each other, so the real number is around 8%."

They are close, but SaaS Capital's figure is SaaS-specific and measured against ARR, while Gartner's spans every industry, skews toward large enterprises, and is measured against total company revenue. Treat them as two separate, useful reference points rather than one confirmed number.

"Early-stage spend percentages are as rigorously measured as the SaaS Capital or Gartner figures."

They are not. The pre-seed, seed, and Series A ranges commonly repeated online come from operator commentary and startup marketing consultants, not a large-sample survey with a stated methodology. Weight them accordingly.

Marketing Budget Glossary

ARR

Annual Recurring Revenue. The annualized value of a company's recurring subscription revenue, the base most SaaS marketing-spend benchmarks are measured against.

CMO Spend Survey

Gartner's annual survey of chief marketing officers on marketing budget size, allocation, and priorities, one of the most cited cross-industry marketing budget benchmarks.

Marketing Spend Benchmark

A published median or range for how much comparable companies spend on marketing, typically expressed as a percent of revenue or ARR.

Stage Band

A funding or maturity stage, such as seed, Series A, or growth, used to group startups for comparison since marketing spend as a percent of revenue varies enormously by stage.

Bootstrapped vs Equity-Backed

A split used in SaaS Capital's survey. Equity-backed companies report spending roughly double what bootstrapped companies spend on marketing as a percent of ARR.

Further Reading

The two primary sources behind the anchor statistics on this page.

The Bottom Line

Two sourced numbers anchor the answer: SaaS Capital's 8% of ARR for private B2B SaaS companies, from a March 2026 survey of over 1,000 respondents, and Gartner's 7.8% of overall company revenue across every industry, from a survey of 401 marketing leaders fielded January through March 2026, up only marginally from 7.7% in 2025. They are close, but they measure different populations against different revenue bases.

Below that mature-company benchmark, spend as a percent of revenue commonly runs much higher at earlier stages, though those stage-specific ranges are operator rules of thumb, not survey data. Use the benchmarks as reference points, then build your own number from your stage, your funding status, and the channels already proving out.

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Weekly Reddit growth tips plus the posting-time dataset referenced above, sent free. Useful if paid channels are eating too much of a small marketing budget.

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How Much Startups Spend on Marketing: FAQ

The questions founders ask most when setting a marketing budget for the first time.

It depends heavily on stage and industry, so there is no single correct number. The two most cited anchor figures are SaaS Capital's 2026 survey, which found private B2B SaaS companies spend a median of 8% of ARR on marketing, and Gartner's 2026 CMO Spend Survey, which found marketing budgets across all industries sit at about 7.8% of overall company revenue, up only marginally from 7.7% in 2025. Early-stage startups commonly run well above either figure since ARR is still small relative to what it takes to find initial traction.

SaaS Capital's 2026 survey puts the median at 8% of ARR for private B2B SaaS companies overall, drawn from over 1,000 respondents. That median blends early and mature companies together, and the survey also notes equity-backed companies spend roughly double what bootstrapped companies spend as a percent of ARR, so the right number for any single company depends on funding status and stage as much as the industry median.

Directionally, yes, though the exact figures for early stages are commonly cited operator rules of thumb rather than a single named benchmark study the way the SaaS Capital and Gartner figures are. As a company matures and ARR grows, marketing spend as a percent of that ARR tends to compress even while the dollar amount spent increases, which is consistent with SaaS Capital's 8% figure sitting at the more mature end of the range.

SaaS Capital's 8% of ARR figure is specific to private B2B SaaS companies and measured against ARR, a recurring-revenue base. Gartner's 7.8% figure spans every industry in the CMO Spend Survey, skews toward large enterprises over $1 billion in revenue, and is measured against total company revenue, which for non-subscription businesses can behave very differently from ARR. The two numbers are close, but they are not measuring the same population or the same revenue base, so treat them as two useful reference points rather than a single figure.

It depends on the source. Most credible benchmarks, including SaaS Capital's survey, ask companies what percentage of revenue they spend on marketing broadly, which typically includes headcount, tools, content, and paid channels together rather than media spend alone. Always check a benchmark's definition before comparing your own spend against it, since a headcount-inclusive figure will read higher than a media-only figure.

Less than you would expect. The widely repeated ranges, often quoted as 10 to 20% of a seed round or 15 to 25% of ARR at Series A, come from operator commentary and startup marketing consultants rather than a large-sample benchmark survey the way SaaS Capital and Gartner's figures do. Treat those stage-specific ranges as commonly cited rules of thumb, and treat the 8% and 7.8% figures as the more rigorously sourced anchors.