How Much Do SaaS Companies Spend on Marketing?

Introduction: The Million-Pound Question (Literally)

Ever feel like marketing is the part of your SaaS business where money disappears into a black hole?

You’re not alone.

Some companies throw 50% of their revenue at marketing. Others barely touch 10%. So... what’s right for you?

In this guide, we’re going to clear up the confusion and show you:

• What most SaaS companies actually spend on marketing

• How your growth stage should influence your budget

• Real benchmarks, proven breakdowns, and common mistakes

• How to turn your spend into long-term value—not just short-term leads

This piece is part of our ongoing series: The Ultimate Guide to Scaling SaaS Marketing: From Startup to Unicorn

Section 1: What Do SaaS Companies Actually Spend?

The Big Picture

According to the 2024 SaaS CFO Benchmark Report, here’s how companies at different stages allocate their marketing budget:

Why the Difference?

Well, it’s simple. Your marketing budget isn’t just a number—it’s a growth lever.

If you're early-stage, you're buying speed. If you're scaling, you're buying efficiency.

💡 Think of your marketing budget like jet fuel—the more thrust you need, the more you’ll burn.

Section 2: How to Budget Based on Growth Goals

Step 1: Know Your Phase

Match your marketing investment to your company stage:

• Pre-product market fit: Focus on research, retention, and learning.

• Post-PMF, growth phase: Double down on acquisition, content, and brand awareness.

• Scaling phase: Prioritise inbound engines and revenue efficiency.

🧠 Example: Atlassian famously spent very little on traditional marketing. Instead, they leaned into PLG (product-led growth), onboarding loops, and community evangelists.

Step 2: Use the Rule of 40

A quick health check:
Your growth rate + profit margin should be at least 40%.

• Growing 60% with -20% margins? Still solid.

• Growing 20% with 25% margins? You’re efficient.

This rule helps you stay focused on sustainable growth, not just flashy metrics.

Step 3: Follow a T-Shaped Budget Allocation

Here’s a proven breakdown used by top SaaS brands:

🎯 Pro Tip: If you're under £4M ARR, lean heavily on content and SEO—it's slow to start, but compounds beautifully over time.

Section 3: Smarter Spending, Common Mistakes & Winning Strategies

What Top SaaS Companies Do Right

• Track CAC by channel. If you’re not measuring CAC per source, you're flying blind. Tools like HubSpot, Dreamdata, or Triple Whale can help.

• Invest in compounding assets. Things like blog posts, pillar content, and video demos keep delivering long after you publish.

• Align with sales. Marketing and sales need to work as one team, not two silos.

Avoid These Budget Traps

• Overspending on PPC too early
•  Ignoring brand-building
• Chasing MQLs instead of qualified pipeline

Real Example: Notion

Notion kept marketing lean by betting on:

• Beautiful design and viral features

• Public templates

• Evangelist community

They let their product (and users) do the heavy lifting—proof that how you spend matters more than how much.

Conclusion: Spend to Scale, Not Just to Grow

Marketing spend isn’t a one-size-fits-all answer. But there is a smarter way to think about it.

✅ Early-stage? Expect to spend big (40–60%).
✅ Scaling? Start optimising for efficiency (15–30%).
✅ Focus on CAC payback, compounding content, and building brand trust.

Next Step: Dive Into the Full Strategy

If you want a roadmap for scaling smarter, not just faster—this is your playbook: 👉 The Ultimate Guide to Scaling SaaS Marketing: From Startup to Unicorn