8 of the Biggest Mistakes I See Businesses Make on Their Marketing Budget!

Over the years, I’ve worked with hundreds of businesses. When it comes to marketing budgets, a lot of businesses get it wrong. And it’s not always the obvious things. Here are the biggest mistakes I see and how you can avoid them:

1. Guessing Instead of Planning

Too many businesses set their marketing budgets by pulling a number out of thin air. “Let’s spend 10% of revenue” or “Match last year’s budget and add 5%.” Sound familiar? The reality is, your budget needs to align with your goals, growth stage, and industry norms. A SaaS startup spending the same percentage as a mature manufacturing company? That’s a recipe for missed opportunities. Lean deeply into your analytics and focus on your CAC and CLV when setting and adjusting budgets.

2. Forgetting the Bigger Picture

Marketing budgets often focus on tactics that don’t tie back to the bigger strategy. What’s your North Star? Is it customer acquisition? Retention? Brand awareness? Without clarity, it’s easy to spend a lot and achieve very little.

3. Treating Marketing as an Expense, Not an Investment

Marketing isn’t just a cost; it’s a growth lever. Every dollar spent should have a measurable impact. If you’re constantly cutting the marketing budget to “save money,” ask yourself—what’s that costing you in missed growth?

4. Overspending on the Wrong Channels

I’ve seen businesses pour money into Google Ads, Facebook Ads, or trade shows because “that’s what everyone does.” But what works for one company may not work for you. You must align your channels with your audience. Without proper data or testing, you risk wasting a chunk of your budget on channels that don’t deliver.

5. Ignoring ROI (Until It’s Too Late)

When was the last time you looked at your marketing ROI? If the answer is “I’m not sure,” you’re not alone, but you are flying blind. Marketing isn’t about doing what we did last year or throwing money at the wall to see what sticks—it’s about learning what works and doubling down on it.

6. Thinking Marketing Budgets Are Set in Stone

Markets shift. Competitors change. What worked six months ago might not work now. Your marketing budget should be as agile as your business strategy.

7. Underestimating the Power of Brand

For VC- and PE-backed companies, it’s tempting to focus exclusively on performance marketing—things you can measure right now. But don’t sleep on brand building. A strong brand can lower your customer acquisition costs over time and drive long-term growth.

8. Working in Silos

In every company I’ve worked with, my first statement is this: recognize that it’s one customer on a single journey with your product or service, regardless of whose responsibility they are internally based on their stage of the journey. Make sure your marketing team is deeply tied into the work and metrics of sales and customer success to shape more effective messaging based on real feedback and insights from those interacting with customers directly. This mindset allows for sustainable systems and more efficient use of time, effort, and money spent on marketing.