Insights
Marketing-to-revenue ratio benchmarks
The marketing-to-revenue ratio tells you whether spend is buying growth or buying noise. Here are the benchmarks and how we moved ours the right way.
In short
A healthy marketing-to-revenue ratio runs roughly 5 to 15% for established B2B, 10 to 20% for B2C and consumer brands, and higher for early-stage companies still buying their market. The number matters less than its direction: at LeoVegas we moved marketing-to-revenue from about 40% to 30% while keeping growth, by cutting waste and concentrating spend on what compounded.
The direct answer
The marketing-to-revenue ratio is marketing spend divided by revenue. It is a discipline tool, not a vanity metric: it shows whether each euro of spend is buying durable growth or simply buying activity. Benchmarks vary by model and stage, so read them as a starting point, then watch your own trend.
Benchmark ranges by model
| Business model | Typical marketing-to-revenue | Notes |
|---|---|---|
| Established B2B | 5% - 15% | Lower as brand and pipeline compound |
| B2C / consumer | 10% - 20% | Higher where acquisition is paid-heavy |
| Early-stage / land-grab | 20% - 40%+ | Buying a market; watch payback closely |
| Turnaround | Cut hard, then rebuild | First fix efficiency, then re-invest into what works |
Directional ranges. The right number depends on margin, payback period and growth stage. Trend matters more than the absolute.
How we cut 40% to 30% without losing growth
At LeoVegas we ran marketing on a 120M budget and drove roughly 50M in incremental revenue. The ratio fell from about 40% to 30% not by slashing spend across the board, but by killing the channels that did not pay back, concentrating budget where the return compounded, and holding every euro to a payback test. Efficiency and growth are not opposites when the spend is disciplined.
How to use the ratio
- Track the trend monthly, not the absolute once a year.
- Pair it with payback period and contribution margin, never read it alone.
- Segment by channel so the average does not hide the waste.
- In a turnaround, cut to efficiency first, then re-invest into proven channels.
Related services
Frequently asked questions
What is a good marketing-to-revenue ratio?
It depends on model and stage, but the direction matters more than the number. A ratio falling while revenue grows is the signal you want.
Can you cut the ratio without hurting growth?
Yes, if you cut waste rather than reach. We moved ours from 40% to 30% at LeoVegas while sustaining growth, by concentrating spend on what paid back.
Tell us the goal. We make it happen.
We deploy senior operator firepower and produce massive results. No excuses, just results.