From the Desk of the VP: Build the Business You Want to Grow
From the Desk of Tracy Hart, VP at Halstead Media
Hi H Client!
We talk with clients all the time who are aiming to grow their revenue by 25%, 50%, even more year over year. That ambition is exactly what we love to see—but too often, the supporting strategy doesn’t match the size of the goal.
Here’s where we see things break down: revenue targets rise, but marketing investments stay flat.
That creates a structural disconnect.
Think of it like one of your most complex design-build projects. You wouldn’t plan a high-end outdoor living space with premium materials and lighting—but skip proper grading or underbuild the foundation. Real growth requires the right infrastructure beneath it. Your marketing is no different. It’s what supports visibility, demand, customer retention, and long-term brand value.
What Growth Really Requires
Let’s say your company is currently generating $3.5M in annual revenue and you’re targeting 25% YOY growth:
Year 1: $4.375M
Year 3: $6.84M
Year 5: $10.7M+
To sustainably support that growth, the marketing investment needs to scale with it. A widely accepted benchmark is to allocate 3–5% of revenue to marketing, depending on your growth stage.
“Companies that want to grow aggressively should allocate closer to 5% or more of their revenue to marketing.”
— Deloitte CMO Survey, Fall 2023
Source: Deloitte CMO Survey (PDF)
A marketing investment aligned at 3–5% of revenue would look something like:
Year 1 (3.5M): $105K–$175K/year → ~$9K–$15K/month
Year 5 (10.7M): $321K–$535K/year → ~$27K–$45K/month
If your investment remains static while revenue goals increase year after year, the math won’t add up.
What We Recommend
Work with your PM to ensure your marketing plan and spend are aligned with your actual growth targets
We’ll be having more strategic conversations with you this season around short- and long-term goals, projections, and actuals
We’re here to help you build a business with depth, value, and future options—whether that’s growing your team, increasing profit, or preparing for a sale.
And…in case you missed it, here are some highlights from this month:
Your Halstead Dashboard doesn’t usually show Bing rankings, but in case you come across them, there’s a bit of a dashboard glitch with them that we’re working on.
Here’s to a strong season,
Tracy Hart
Vice President of Customer Experience & Delivery, Halstead Media