{"id":135834,"date":"2026-03-05T07:18:58","date_gmt":"2026-03-05T15:18:58","guid":{"rendered":"https:\/\/www.websitebuilderexpert.com\/?p=135834"},"modified":"2026-03-05T07:18:58","modified_gmt":"2026-03-05T15:18:58","slug":"marketing-budget-cuts","status":"publish","type":"post","link":"https:\/\/www.websitebuilderexpert.com\/news\/marketing-budget-cuts\/","title":{"rendered":"Marketing Budgets Are Getting Cut: Here\u2019s What You Should Do Now"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_single_image image=&rdquo;135881&Prime; img_size=&rdquo;full&rdquo; alignment=&rdquo;center&rdquo; css=&rdquo;&rdquo;][vc_column_text css=&rdquo;&rdquo;]<strong>Almost three quarters of SMBs say that marketing costs have negatively affected their profits in January.<\/strong> While making marketing budget cuts may appear to be a quick solution, doing so can make it harder to <a href=\"https:\/\/www.websitebuilderexpert.com\/grow-online\/how-to-attract-customers-to-online-store\/\">attract customers<\/a> and grow your brand in the long term.<\/p>\n<p>We surveyed 300 SMBs in the US on finances, and found marketing to be a common cause of concern. Below, I&rsquo;ll unpack the trends we found and share how automation may be the best solution.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column]\n<section class=\"taco-content-section \" id=\"section-0\">\n <header class=\"taco-section-header no-number\">\n\n <div class=\"taco-section-heading\">\n <h2 class=\"taco-section-title primary\">\n \n The Negative Impact of Marketing Costs on SMB Profitability <\/h2>\n\n <\/div>\n\n <\/header>\n\n \n\n [vc_column_text css=&rdquo;&rdquo;]The costs involved in running a business are on the rise, and profit margins are declining as a result. In fact, <strong>our survey found that 13% of SMBs are giving up over 41% of monthly revenue to operating expenses.<\/strong>[\/vc_column_text]<meta data-fa-load=\"fas fa-plus\">\n<meta data-fa-load=\"fas fa-minus\">\n<div class=\"wbe-accordion\" id=\"what_counts_operating_expenses\" data-eventcategory=\"content-element\" data-eventaction=\"accordion\">\n \n<div class=\"accordion-section\" id=\"acc-what_counts_operating_expenses-sect-0\">\n\n \n\n <button class=\"accordion-title accordion-collapse-control\">\n <h4>\n What counts as an operating expense? &#129300; <\/h4>\n <\/button>\n\n\n \n \n <div class=\"accordion-content\" id=\"acc-what_counts_operating_expenses-cont-0\">\n Factors like rent, salaries, software subscriptions, and business loans make up the overall cost of keeping your business running day-to-day. Here&rsquo;s how we categorized these expenses in our survey:\n<ul>\n<li>Personal costs<\/li>\n<li>Rent and facilities costs<\/li>\n<li>Technology and software<\/li>\n<li>Marketing and advertising<\/li>\n<li>Inventory<\/li>\n<li>Loan and debt<\/li>\n<li>Taxes and regulations<\/li>\n<li>General supplies<\/li>\n<\/ul>\n<p> <\/p><\/div>\n\n\n \n<\/div>\n\n<\/div>\n[vc_column_text css=&rdquo;&rdquo;]We asked businesses which operating expenses were the most impactful on their profit margins in January. While taxes and regulatory fees were the biggest concern, <strong>72% of businesses also found marketing and advertising costs were causing a notable drop to their bottom line.<\/strong><\/section><\/p>\n<p>If you&rsquo;re struggling to work out how to respond to increasing operating expenses, you&rsquo;re not alone &ndash; the majority of businesses we spoke to had no immediate cost-control strategies in place. But for those with a plan, the most popular strategies were reducing discretionary spending, negotiating lower prices, and reducing marketing and advertising spend.[\/vc_column_text][vc_single_image image=&rdquo;135879&Prime; img_size=&rdquo;full&rdquo; add_caption=&rdquo;yes&rdquo; alignment=&rdquo;center&rdquo; css=&rdquo;&rdquo;]\n <footer>\n <\/footer>\n\n\n[\/vc_column][\/vc_row][vc_row][vc_column]\n<section class=\"taco-content-section \" id=\"section-0\">\n <header class=\"taco-section-header no-number\">\n\n <div class=\"taco-section-heading\">\n <h2 class=\"taco-section-title primary\">\n \n Something&rsquo;s Got To Give: Marketing Budgets Take a Hit <\/h2>\n\n <\/div>\n\n <\/header>\n\n \n\n [vc_column_text css=&rdquo;&rdquo;]Our survey found <strong>11% of small to medium US-based businesses are planning to combat increased operating costs by reducing their spend on marketing.&nbsp;<\/strong><\/section><\/p>\n<h3>How Much Are Businesses Reducing Marketing Budgets By?<\/h3>\n<p>When we asked businesses how much they&rsquo;re planning to reduce their marketing budgets by, over half fell within the 6% to 15% range. The majority were concentrated on the lower end, making cuts of 6% to 10%, but over a quarter are cutting budgets by 11% to 15%.<\/p>\n<p>Here&rsquo;s the full breakdown:<\/p>\n<ul>\n<li>23% will reduce marketing budget by 1% &ndash; 5%<\/li>\n<li>29% will reduce marketing budget by 6%-10%<\/li>\n<li>26% will reduce marketing budget by 11%-15%<\/li>\n<li>6% will reduce marketing budget by 16%-20%<\/li>\n<li>17% will reduce marketing budget by 21% or more<\/li>\n<\/ul>\n<p>[\/vc_column_text]\n <footer>\n <\/footer>\n\n\n[\/vc_column][\/vc_row][vc_row][vc_column]\n<section class=\"taco-content-section \" id=\"section-0\">\n <header class=\"taco-section-header no-number\">\n\n <div class=\"taco-section-heading\">\n <h2 class=\"taco-section-title primary\">\n \n The Hidden Impact: Marketing Software and Hiring Under Scrutiny <\/h2>\n\n <\/div>\n\n <\/header>\n\n \n\n [vc_column_text css=&rdquo;&rdquo;]Our survey responses show a strong trend towards tightening investment around marketing activity, with two specific areas being scrutinized:<\/section><\/p>\n<ol>\n<li><strong>Software: <\/strong>Of the 11% of businesses planning to re-evaluate their tech and software expenses, <strong>the majority (34%) were most keen to cut down on marketing software specifically.<\/strong><\/li>\n<li><strong>Hiring: <\/strong>Of the SMBs using hiring freezes to combat operational costs, <strong>22% will focus this on the sales and marketing departments.&nbsp;<\/strong><\/li>\n<\/ol>\n<p>While cutting marketing costs may provide immediate relief for businesses facing financial pressures, the risks attached to this strategy tend to snowball. For instance, less resources often leads to worsened output (quantity <em>and <\/em>quality) and as a result, your brand awareness and visibility may take a hit. It&rsquo;s also challenging to regain market share once lost, meaning you may lose more money in the long term than you save.[\/vc_column_text]\n <footer>\n <\/footer>\n\n\n[\/vc_column][\/vc_row][vc_row][vc_column]\n<section class=\"taco-content-section \" id=\"section-0\">\n <header class=\"taco-section-header no-number\">\n\n <div class=\"taco-section-heading\">\n <h2 class=\"taco-section-title primary\">\n \n Marketing Automation: The Key To SMB Growth Beyond 2026? <\/h2>\n\n <\/div>\n\n <\/header>\n\n \n\n [vc_column_text css=&rdquo;&rdquo;]Brand awareness and visibility are key to a thriving business, but they take time and effort to maintain. Marketing automation AI tools are the most effective way to maintain marketing activity when short of resources.<\/section><\/p>\n<p>To prove this further, marketing was one of the most common uses among the 10% of survey respondents using automation to save on costs:<\/p>\n<ul>\n<li>55% are automating market research<\/li>\n<li>42% are automating personalized marketing<\/li>\n<\/ul>\n<p>While many businesses are opting out of marketing software and subscriptions to save money, there are wider benefits in committing to AI marketing automation tools. Firstly, by taking care of key tasks, these tools reduce the workload of marketing teams, allowing businesses to carry out hiring freezes.<\/p>\n<p>On top of reducing strain, automations can actually yield faster and better results when it comes to carrying out repetitive tasks that take up time. For instance, you could use <a href=\"https:\/\/www.websitebuilderexpert.com\/building-websites\/best-ai-tools-content-creation\/\">AI tools to create content<\/a> at scale, or to time your <a href=\"https:\/\/www.websitebuilderexpert.com\/email-marketing\/what-is-email-marketing\/\">email marketing<\/a> sends for the highest open rate.[\/vc_column_text]\n <footer>\n <\/footer>\n\n\n[\/vc_column][\/vc_row][vc_row][vc_column]\n<section class=\"taco-content-section \" id=\"section-0\">\n <header class=\"taco-section-header no-number\">\n\n <div class=\"taco-section-heading\">\n <h2 class=\"taco-section-title primary\">\n \n Final Thoughts: What To Try First <\/h2>\n\n <\/div>\n\n <\/header>\n\n \n\n [vc_column_text css=&rdquo;&rdquo;]If your <a href=\"https:\/\/www.websitebuilderexpert.com\/marketing\/digital-marketing-roi-statistics\/\">marketing ROI<\/a> is down, you may feel tempted to make cuts. However, marketing is a key component of long-term growth, so you must weigh up the short and long-term implications of any changes you&rsquo;re considering.<\/section><\/p>\n<p>Before making quick decisions that could hinder your business, ask yourself if you can optimize your marketing spend using AI and automation tools first.[\/vc_column_text]\n <footer>\n <\/footer>\n\n\n[\/vc_column][\/vc_row]<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&rdquo;135881&Prime; img_size=&rdquo;full&rdquo; alignment=&rdquo;center&rdquo; css=&rdquo;&rdquo;][vc_column_text css=&rdquo;&rdquo;]Almost three quarters of SMBs say that marketing costs have negatively affected their profits in January. While making marketing budget cuts may appear to be [&hellip;]<\/p>\n","protected":false},"author":188,"featured_media":135882,"comment_status":"open","ping_status":"closed","sticky":false,"template":"template-best.php","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[380],"tags":[],"class_list":["post-135834","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"yoast_head":"\n<title>Marketing Budget Cuts In 2026: Data, Trends, and Next Steps<\/title>\n<meta name=\"description\" content=\"Marketing budgets are being cut by businesses to manage their operating expenses, according to our 2026 survey. Find out why, how, and what you should be doing.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.websitebuilderexpert.com\/news\/marketing-budget-cuts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Marketing Budget Cuts In 2026: Data, Trends, and Next Steps\" \/>\n<meta property=\"og:description\" content=\"Marketing budgets are being cut by businesses to manage their operating expenses, according to our 2026 survey. 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