Data Snacks Video — Marketing Budget



What is up, awesome eComm people? So, today, we’re going to talk about marketing budget.

A marketing budget is any amount of money that a company plans to spend on marketing and growth initiatives for their business. Having this really dialed-in understanding allows a company to understand how much they can afford to grow their business.

Where this gets really important, especially for eCommerce brands, is understanding what you should set your marketing budget at every year — and how you should really define success through that. What we typically see is that eCommerce brands set their marketing budget as a percentage of the previous year’s top-line revenue.

Only the earlier stage (and side) for early, scaling startups, we typically see that their budget is somewhere around 20% of last year’s top line. As a brand grows more and becomes bigger, their marketing budget typically is around 10-15%. This all varies based on priorities, where the company is in their life cycle, and how they want to continue to grow.

It’s super important to dial that in to understand what you can afford to continue to grow your brand, what does profitability look like, and how much profitability are you willing to sacrifice for growth.

Understanding that balance will help you grow your business faster. And by tracking that, you can get granular on how effective all those dollars that are going out of your business are as far as whether they are coming back as new customers and new revenue growing the overall business.

Special thanks to our friends at Daasity for their insights on this topic.
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The Suez Colonic, Just Sue It.

The Suez Colonic, Just Sue It.

Learn About Shopify App Development At React Summit 2021

Learn About Shopify App Development At React Summit 2021


Steve has entrepreneurship in his DNA. Starting in the early 2000s, Steve achieved eBay Power Seller status which propelled him to become a founding partner of, a contact lens and eyewear retailer. Four years later through a successful exit from that startup, he embarked on his next journey into digital strategy for direct-to-consumer brands.

Currently, Steve is a Senior Merchant Success Manager at Shopify, where he helps brands to identify, navigate and accelerate growth online and in-store.

To maintain his competitive edge, Steve also hosts the top-rated twice-weekly podcast eCommerce Fastlane. He interviews Shopify Partners and subject matter experts who share the latest marketing strategy, tactics, platforms, and must-have apps, that assist Shopify-powered brands to improve efficiencies, profitably grow revenue and to build lifetime customer loyalty.

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