How Much Should You Spend on SaaS Marketing? Benchmarks and Best Practices

Marketing is an essential component of any successful SaaS business. However, with so many different marketing channels and strategies available, it can be challenging to determine how much you should spend on marketing. In this article, we’ll explore SaaS marketing spend benchmarks and best practices to help you allocate your marketing budget effectively.

What is SaaS Marketing?

SaaS marketing is the process of promoting software as a service (SaaS) products to potential customers. It involves a range of tactics, including content marketing, search engine optimization (SEO), paid advertising, and social media marketing.

SaaS Marketing Spend Benchmarks:

There is no one-size-fits-all approach to SaaS marketing spend. The amount you should budget depends on several factors, including your company size, target market, and growth goals. However, industry benchmarks can provide a useful starting point.

According to a 2020 survey by OpenView Partners, the average SaaS company spends approximately 11% of its revenue on marketing. However, this percentage can vary significantly depending on your company’s growth stage. Early-stage SaaS companies typically spend between 30-50% of their revenue on marketing, while more established companies may spend as little as 5-7%.

Best Practices for SaaS Marketing Spend:

While industry benchmarks can provide helpful guidance, there are several best practices you should follow when determining your SaaS marketing budget.

  1. Define Your Goals:

 Before allocating your marketing budget, you need to define your growth goals. What do you want to achieve with your marketing efforts? Do you want to increase your customer base, improve retention rates, or boost revenue? Once you have a clear idea of your goals, you can develop a more targeted marketing strategy and budget accordingly.

  1. Invest in Multiple Channels:

 SaaS marketing is a multifaceted discipline that requires a comprehensive approach. To maximize your marketing efforts, you should invest in multiple channels, including SEO, content marketing, paid advertising, social media, and email marketing.

  1. Measure ROI: 

To ensure you’re getting the most out of your marketing spend, you need to measure your return on investment (ROI). By tracking metrics such as customer acquisition cost (CAC), customer lifetime value (CLV), and conversion rates, you can determine which marketing channels are delivering the best results and adjust your budget accordingly.

  1. Be Agile: 

SaaS marketing is an ever-evolving field, and what works today may not work tomorrow. To stay ahead of the curve, you need to be agile and adapt your marketing strategy as needed. This may involve reallocating your budget to different channels or experimenting with new tactics.


  1. How much should I spend on SEO for my SaaS business?

There is no one-size-fits-all answer to this question. Your SEO budget will depend on several factors, including your company size, target market, and growth goals. However, a good rule of thumb is to allocate 10-15% of your marketing budget to SEO.

  1. Should I focus on paid advertising or content marketing for my SaaS business?

Both paid advertising and content marketing can be effective for SaaS businesses, depending on your goals and target audience. Paid advertising can help you reach a larger audience quickly, while content marketing can help you establish thought leadership and build trust with potential customers.


Determining how much to spend on SaaS marketing can be a daunting task, but by following these benchmarks and best practices, you can allocate your budget effectively and maximize your marketing efforts. Remember to define your goals, invest in multiple channels, measure ROI, and be agile in your approach. By doing so, you can ensure that your SaaS marketing strategy is optimized for success.

Useful Resources –

B2B Marketing: The Ultimate Guide To Drive Business Growth

The Importance of B2B Testers in Your Marketing Strategy

Creating a Killer Marketing Report: Tips and Best Practices for B2B Marketers

The Role of B2B Marketing Services in Building Trust with Customers

How B2B Marketing Agencies in Sydney are Adapting to the Changing Marketing Landscape

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