The State of Marketing Spend 2025

After a period of decline, marketing spending is on the rise again, with businesses adapting their strategies to stay competitive, focusing on high-ROI activities, and using data-driven insights to inform their investments.

To help B2B sales and marketing teams maximise their budgets and drive lead generation success, we’ve analysed industry data to reveal key marketing budget trends across different sectors and global markets. 

UK marketing budget trends

According to the Q4 IPA Bellwether Report, UK marketing budgets returned to growth in the final three months of 2024 after stagnating in Q3. A net balance of 1.9% of companies increased their marketing budgets, with over a fifth (21.7%) reporting an increase, outweighing the 19.9% who made cuts.

Where are businesses increasing marketing spend?

• Events (+12.3%) saw the highest growth, suggesting a strong return to in-person networking and trade shows.
• PR (+6.8%) investment continues to rise as companies focus on brand reputation and earned media.
• Direct marketing (+5.6%) remains an essential channel for targeted outreach.
• Sales promotions (+4.1%) saw a moderate increase, likely from companies aiming to drive short-term sales.
• Market research (+3.1%) spending also rose moderately, reflecting a need for better customer insights and data-driven decisions.

Where is marketing spending declining?

• Main media advertising (-4.3%) declined, suggesting a shift from traditional advertising.
• Other marketing activities (-4.2%) also experienced cuts. This could include somewhat outdated and often less fruitful tactics like sponsorships, which are featured less in marketing strategies.

Marketing spend across key UK sectors

Marketing investments vary widely across industries, with each sector balancing its spending against revenue and market demands. Below, we explore how some key B2B sectors are allocating their marketing budgets and what it means for their growth strategies.

Banking, Finance, Insurance (12% of revenue)

The financial services sector ranks fourth for marketing spend in the UK, showing that businesses in this space continue to invest in brand trust and customer acquisition.

According to the CMO Report, marketing spending in this sector has increased compared to last year, reflecting ongoing competition in areas like digital banking and fintech.¹ Regulatory changes and consumer expectations also drive the need for marketing strategies emphasising efforts to protect security and drive innovation.

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Mining, Construction (10% of revenue)

Mining and construction marketing spending currently sits at around 10% of revenue for firms in the sector. Construction activity in the UK has recently experienced its steepest decline since May 2020, with significant drops in housebuilding and engineering work.²

In light of these challenges, companies in these sectors may invest in additional marketing. Putting more money into marketing can help companies differentiate themselves, highlight their commitment to sustainability, and adapt to the changing market dynamics to try and counter the declining demand.

Tech, Software Platforms (10% of revenue)

The tech sector also spends 10% of its revenue on marketing and remains a major player in B2B marketing. While marketing investment in this sector has dipped slightly compared to the firms surveyed in the CMO Report’s previous edition, competition remains fierce, particularly in AI, SaaS, and cybersecurity.¹ Cost-effective marketing strategies, such as targeted content and account-based marketing (ABM), are prioritised to maintain demand and drive conversions.

Learn more about our SaaS lead generation services to see how our expertise can grow your software business.

Services, Consulting (6% of revenue)

The services and consulting sector has one of the lowest marketing spending percentages, at 6% of revenue. Key marketing tactics for businesses in this sector include thought leadership, networking, and digital content (e.g. white papers and webinars), where credibility and expertise are the main selling points.

The UK’s economic climate has made businesses more selective with consultancy spending, reinforcing the need for strong brand positioning. As a result, higher levels of marketing investment may be required for firms in this sector to drive strategic growth. 

US marketing budget trends

According to the CMO Survey, marketing budgets in US firms have also steadily increased, with overall spending rising from 2.6% in Fall 2023 to 5.8% in Fall 2024. Marketing investment is also expected to climb to 8.6% over the next 12 months. This upward trend suggests a renewed confidence in marketing investments and commitment to driving measurable growth. 

Digital marketing spending increases have outpaced overall marketing growth, rising from 7.9% in Fall 2023 to 11.1% in Fall 2024, with projections reaching 12.7% over the next 12 months. This rapid expansion shows the growing importance of digital channels in marketing strategies as businesses allocate more resources to paid search, social media, and marketing automation.

Marketing spend changes by category: 

• Customer relationship management budgets grew from 3.9% in Spring 2024 to 6.9% in Fall 2024, reflecting a stronger focus on nurturing long-term customer relationships.
• Brand building saw a similar increase, from 3.9% to 7.0% growth, with businesses prioritising the need for strong brand recognition.
• Customer experience investment rose, but slower, from 4.7% to 5.6% of revenue, suggesting a sustained commitment to improving buyer journeys.
• Innovation remains a priority, with marketing budgets for new product introductions rising from 5.9% to 8.1% and new service introductions increasing from 2.9% to 4.3%, ensuring that new offerings effectively reach the right audience.
• After a decline, traditional advertising is resurgent, moving from -2.1% in Spring 2024 to 0.8% in Fall 2024. While digital remains dominant, traditional channels are becoming more relevant in certain B2B sectors, such as direct mail campaigns targeting high-value prospects.

Marketing spend across key US sectors

In the US, marketing spending largely reflects the UK landscape, but there are a few key differences. The data below explores how much of their revenues US firms in the same key industries spend on marketing.

Banking, Finance, Insurance (11% of revenue)

The marketing spend of US financial services firms ranks sixth compared to other sectors, slightly lower than in the UK. While marketing spend has remained steady, economic uncertainty and interest rate fluctuations have led to a shift towards more targeted campaigns. Banks and insurers are investing in retaining clients and going digital to improve customer experience and differentiate in a crowded market.

Professional Services (11% of revenue)

Unlike the UK, where consulting ranks lower in marketing spend, US professional services firms allocate a much more significant portion of revenue to marketing – almost double, at 11% compared to 6%, respectively.

Thought leadership, targeted client acquisition via account-based prospecting and appointment setting, and digital presence are key focus areas. The highly competitive nature of the consulting market in the US makes sustained investment in marketing essential for continued growth.

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Mining, Construction (10% of revenue)

Like the UK, mining and construction businesses in the US allocate around 10% of their revenue to marketing. With infrastructure investments and sustainability concerns shaping the industry, marketing plays a crucial role in communicating ESG initiatives and securing B2B partnerships.

Additionally, with residential construction forecasted to rebound by 12% in 2025, driven by stabilising inflation and declining interest rates, increased marketing efforts might be needed for firms to stand out from the competition and capitalise on the growing demand.³

Tech, Software Platforms (9% of revenue)

Tech sector marketing spending in the US is lower than in the UK, ranking 11th overall. The sector has seen budget cuts as companies prioritise profitability over more aggressive expansion. With layoffs and funding slowdowns affecting the industry, businesses increasingly focus on cost-effective marketing strategies, such as organic content marketing and performance-driven campaigns.

Looking for an internet or broadband provider lead generation agency? How about a telecommunications lead generation agency? Whatever your industry, we have the experts.

Marketing budget template for SMEs

To help small and medium-sized businesses (SMEs) plan and track their marketing spending, we’ve created a Marketing Budget Template that you can access and download for free. This template will help you allocate and manage your budget efficiently across different marketing activities and channels.

Steve Harlow, Chief Sales Officer at Sopro, offers his tips on how to maximise your B2B marketing budget…

1. Prioritise high-intent lead generation channels

Not all leads are created equal. Invest in channels where decision-makers are actively looking for solutions:

• SEO & content marketing – Optimise for industry-relevant keywords and produce authoritative content that answers key business pain points.
• LinkedIn advertising – Target decision-makers with precise industry, job title, and company size filters.
• Webinars & virtual events – Showcase expertise and capture engaged leads actively interested in your niche.

2. Use data for smarter spending

• Identify high-performing campaigns – Use analytics to double down on what works and cut what doesn’t.
• Implement lead scoring – Prioritise quality over quantity by scoring leads based on engagement, company fit, and intent.
• Track cost per lead (CPL) and customer acquisition cost (CAC) – Monitor these metrics closely and adjust your strategy to ensure efficiency.

3. Maximise ROI with marketing automation

• Automate lead nurturing – Use email workflows to keep prospects engaged without constant manual effort.
• Use AI for personalisation – Dynamic content and chatbots can tailor messaging to specific industries or job roles.
• Repurpose content across channels – Convert blog posts into LinkedIn posts, whitepapers, and email newsletters to stretch your content budget.

4. Use cost-effective lead generation tactics

• Referral & partner programs – Use industry connections for mutual lead sharing.
• Guest blogging & PR outreach – Establish credibility and gain backlinks without heavy ad spend.
• Free tools & templates – Offer calculators, checklists, or whitepapers in exchange for contact details.

5. Retarget & retain for higher lifetime value (LTV)

• Retarget website visitors & engaged prospects – Use LinkedIn and Google Ads to increase touchpoints with prospects.
• Strengthen client retention – Upsell and cross-sell existing customers through email marketing and exclusive offers.
• Keep an eye on churn risk – Get regular feedback to understand and address client pain points early.

Methodology

Recent trends in UK marketing budget revisions – sourced from the Q4 IPA Bellwether Report via MarketingWeek.

UK marketing expenses as mean % of revenue  – sourced from the March 2023 CMO Survey (page 38)

Recent trends in US marketing budget revisions – sourced from the CMO Survey.

US marketing expenses as mean % of revenue  – sourced from the Fall 2024 CMO Survey Firm and Industry Breakout Report (page 11)

Other references:

¹ https://assets.ctfassets.net/hxo16fanegqh/5b82Zgkak6sVjAxng2OMWL/383abe78336d5344a6934e48127cac95/the_cmo_survey_uk-firm_and_industry_breakout_report-february_2022.pdf

² https://www.pmi.spglobal.com/Public/Home/PressRelease/d22e0901f3704615b530235d9d83fe9  

³ https://www.theaccessgroup.com/en-us/blog/con-the-us-construction-industry-outlook-2025/ 

Ends

Sopro is a leading, global multi-channel prospecting service that enables B2B businesses to sell more by discovering and engaging their future customers. 

As an award-winning B2B lead generation agency, our sophisticated approach is underpinned by cutting edge technology and data driven insights, carefully blending the right levels of email, LinkedIn, social ads, phone data, and more to produce the best results for your outreach campaign.

Sopro brings close to a decade of expertise, resources, and strategy to every campaign, offering a custom approach to nail the targeting, messaging and channels to optimise your campaign. All messages are sent from your sales reps and replies land back in your inbox. 

We’re experts in all aspects of lead generation, so no matter what industry you’re in, whether you need a marketing and advertising lead generation agency or something else, we can help fill your sales pipeline.