How Much Should Energy Companies Spend on Marketing?
Across all industries marketing runs near 8 percent of revenue. Energy sits far below that, close to 3 percent. Here is what the benchmarks say, why energy underspends, and how a B2B energy firm should set its number.
- The cross-industry average marketing budget is 7.7 percent of revenue in 2025, and the B2B subset is 8.1 percent, down from 9.1 percent a year earlier (Gartner).
- Energy is a notable underspender, at around 3 percent of revenue, reflecting relationship and procurement led buying rather than brand led demand.
- Underspending is rational only up to a point, in long cycle markets the brands buyers already know win the shortlist before a tender opens.
- Set the number by growth stage, not by sector habit, market entry and share gain justify the top of the range, defend and harvest the bottom.
- Tie the budget to pipeline coverage and cycle length, not to what competitors spend, the goal is enough presence to be considered, then enough proof to be chosen.
Around 8 percent across industries, about 3 percent in energy
The most cited source is Gartner's annual CMO Spend Survey. Its 2025 edition found marketing budgets flat at 7.7 percent of overall company revenue, with the business to business subset at 8.1 percent, down from 9.1 percent the year before (Gartner, Marketing Brew). The Deloitte and Duke CMO Survey, which samples different companies, tends to land higher, near 9 percent.
The sector detail is where energy stands out. In the same Gartner data, energy companies report marketing spend of roughly 3 percent of revenue, among the lowest of any industry, while manufacturing sits near 9.5 percent and financial services near 7 percent. So the honest answer to how much energy companies spend is, far less than everyone else. Whether that is the right amount is a separate question.
Project 54Energy firms spend far less of revenue on marketing than other sectors. The right number is set by growth stage, not by habit.Energy is near the bottom of the table
Marketing spend as a share of revenue varies widely by sector. The figures below draw on Gartner's 2025 CMO Spend Survey and standard B2B budgeting ranges. Treat them as benchmarks, not targets, the right number depends on your growth stage.
| Segment | Marketing as share of revenue | Basis |
|---|---|---|
| All industries average | 7.7% | Gartner 2025 |
| B2B subset | 8.1% | Gartner 2025, was 9.1% in 2024 |
| Manufacturing | ~9.5% | Gartner 2025 |
| Financial services | ~7.2% | Gartner 2025 |
| Energy | ~3% | Gartner 2025, among the lowest |
| Smaller B2B firms | 2 to 5% | Common planning range |
Relationship led buying hides the cost of being unknown
Energy B2B buying is relationship and procurement led, with long cycles, few buyers per deal, and an engineering culture that trusts references over reach. When a handful of named accounts drive the pipeline, spending 8 percent of revenue on marketing can look wasteful, so budgets get cut to the bone.
The flaw in that logic is the 95-5 rule, that at any moment only about 5 percent of buyers are in market, so the other 95 percent are forming impressions for later. In a market with two year cycles, the brand a buyer already recognises wins the shortlist before the tender is written. We set this out in the 95-5 rule for energy B2B. Underspending is not free, it just moves the cost to the tenders you never get invited to.
By growth stage and cycle, not by sector average
Set the budget by what the business is trying to do. A company entering a new market or chasing share should sit at the top of the range, 5 to 6 percent or more, because it has to buy awareness it does not yet have, a logic we cover in the beachhead strategy for energy market entry. A mature company defending a known position can run leaner, 2 to 3 percent, spending to stay considered rather than to be discovered.
Then tie the number to pipeline coverage and cycle length rather than to competitors. The test is simple, do enough of the right buyers know you before they are in market, and is there enough proof to convert them once they are. Where the money goes matters as much as how much, the highest return uses go to demand generation, content that earns trust, account based marketing on named targets, and increasingly to AI visibility so you are cited when buyers ask an assistant. We break the channels down in digital marketing for energy companies and account based marketing for energy B2B.
Listen & take it with you
Prefer audio, or need the deck for an internal review? The full briefing is available as a podcast episode and a downloadable slide presentation.
What is the biggest reason energy companies underspend on marketing?
Frequently asked
Benchmarks put the cross-industry average at 7.7 percent of revenue and the B2B subset at 8.1 percent, while energy runs near 3 percent. A practical range for a B2B energy company is 2 to 6 percent of revenue, set by growth stage and sales cycle length.
Gartner's 2025 CMO Spend Survey found an average of 7.7 percent of company revenue, flat year on year, with the business to business subset at 8.1 percent. The Deloitte and Duke CMO Survey tends to report higher, near 9 percent.
Energy B2B buying is relationship and procurement led with long cycles and few buyers, so marketing can look optional. The hidden cost is lost consideration, because most future buyers form impressions long before they are in market.
More. A company entering a market or chasing share should sit at the top of the range, because it has to buy awareness it does not yet have. Established players defending a known position can run leaner.
Get the next intelligence drop
Join energy and industrial leaders getting our marketing, AI-growth and revenue-architecture intelligence, direct, no filler.
You're on the list
Welcome to The Energy Growth Brief, watch your inbox for the next dispatch.