Short answer

A communication budget starts with the business goal, the audience to reach, the time available and the resources already in place. It should then be divided between ongoing activity, targeted initiatives and a share devoted to learning. A single percentage for every business does not account for its stage, margins or ability to turn attention into opportunities.

Start with the result the business needs to achieve

A figure in isolation tells you little. The same spend may be insufficient to launch a brand in a new market and excessive for a company that first needs to clarify its offer and sales process. The first question is what change communication needs to support over the next six or twelve months.

Distinguish between goals such as increasing recognition, generating qualified enquiries, entering a region or strengthening trust among an existing audience. Each requires different timing and resources. Without an explicit direction, the budget tends to become a list of costs to cut or renew out of habit.

  • What result do we want to observe, and within what timeframe?
  • Which audience needs to change its perception or behaviour?
  • What happens after contact: who responds, how quickly and with what offer?

Calculate the cost of the whole journey

Distribution is only part of the investment. To be credible, a campaign needs a message, content, a landing page, measurement and the capacity to handle enquiries. A campaign that sends visitors to a confusing page can consume budget even when media buying is efficient.

It helps to separate planning, production, distribution and analysis. This makes the real cost of activating a channel visible and avoids plans that fund advertising while leaving the steps needed for conversion unsupported. The time of in-house staff is also a resource to account for.

Allocate resources by function

A useful allocation does not begin with a list of platforms. It starts with three functions that work together: maintaining a recognisable presence, accelerating a specific goal and learning where the business can grow. The shares change according to the company’s stage; there is no universal ratio to apply mechanically.

  • Ongoing foundation: a website, essential content, editorial presence and measurement tools that make the business understandable and discoverable.
  • Targeted initiatives: media campaigns, collaborations with publishers or creators and local projects tied to an audience and a timeframe.
  • Learning: focused tests of a message, format or channel, with clear criteria for continuing, adjusting or stopping.

Choose channels and timing according to demand

If there is already active demand, search and direct-response campaigns can help capture it. If the audience is not yet aware of the problem or the brand, reach, editorial context and message repetition are also needed. When the sales cycle is long, trust built before contact matters as much as the final click.

This is why short-term investment and activities that build value over time can coexist. Choices should consider when a result is expected and what visibility will remain after the individual campaign. A sustainable plan also clarifies what to reduce when a test does not work.

Measure and reallocate without chasing every number

Before starting, give each activity a small set of indicators that match its function. For a demand-generation campaign, the quality of enquiries and what becomes a sales opportunity matter. For positioning work, qualified reach, branded searches, relevant visits and understanding of the offer matter too.

Reviewing the plan at regular intervals makes it possible to move resources based on evidence, without expecting every channel to produce the same result in the same timeframe. Discussion with the sales team is crucial: communication metrics become useful when they help explain the conversations coming in.

Frequently asked questions

Is there a percentage of revenue that should go towards communication?

There is no percentage that works for every business. Growth stage, margins, competition, goals and sales timelines all change what is needed. A percentage can be an initial constraint, but the plan should be built around activities and expected results.

With a limited budget, should everything go into advertising?

It depends on how clear the offer is and how well visits can be converted into enquiries. Before increasing distribution, check the message, landing page and lead handling. Then you can fund a targeted test and measure it.

How often should budget allocation be reviewed?

Active campaigns need frequent checks. Strategic choices should be reviewed over a period that fits the sales cycle and the time channels need to produce reliable signals.

Strategy needs to lead to a decision.

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