If you’re a founder or marketing manager at a B2B tech company, you’ve probably been in this situation before: the board asks, “How much are we spending on marketing?” and the answer comes easily—the amount invested in Google Ads, Meta Ads, and maybe LinkedIn Ads. Period.
The problem is that this question, phrased this way, is already based on a false premise: that marketing is synonymous with paid media for generating demand. And that is precisely where most B2B software companies in Brazil are leaving money (and growth) on the table.
The marketing budget isn't just a single line item
In practice, every marketing budget that really works is divided into three very distinct areas, each of which requires different metrics, deadlines, and expectations:
Brand. It’s the investment that builds recognition and trust even before there’s any intention to buy. Educational content, the founder’s presence on LinkedIn, PR, events, and community. It doesn’t generate direct leads; it builds familiarity, which later translates into lower-cost conversions across all other channels.
Demand. This is the part everyone is already familiar with: targeting people who are already in buying mode or almost there. Google Ads (search), Meta Ads, LinkedIn Ads, transactional SEO, outbound marketing. This is where most tech companies focus 90% or more of their budget—and that’s exactly where the first mistake lies.
Expansion. This involves investing in existing customers: upselling, cross-selling, retention, and referrals. In B2B SaaS, where the LTV of a well-managed customer typically far exceeds the cost of acquisition, this is often the most neglected area—and the one that offers the highest return on every real invested.
The most common mistake: focusing entirely on demand, with no attention to branding or expansion
In the day-to-day auditing of paid media accounts, it is common to see Brazilian B2B technology companies with a budget allocation like this:
- 95% or more in demand (almost always Google and Meta Ads)
- Less than 5% brand awareness (sometimes zero; no investment in content, positioning, or organic presence)
- Virtually no growth (the current customer base rarely receives any kind of dedicated marketing investment)
The predictable result: acquisition costs rising month after month, because all demand depends on capturing those who are already searching, rather than creating new buyers in the market. When keyword auctions become more expensive or competition drives up bids, the entire company feels the impact, because there is no other engine running in parallel.
This is often a symptom of a more structural problem: a lack of visibility into where marketing spend is actually making an impact. It’s the same kind of distortion that occurs when a company looks only at total revenue without understanding where it comes from, or when the cost reported by an ad platform doesn’t match what the CRM shows after the deal closes.
A starting point
There is no universal “correct” ratio. It depends on the company’s stage, the sales cycle, and the maturity of the category. But as a starting point for discussion, a healthy distribution for a growing B2B software company usually looks something like this:
| Front | Investment range | What's included |
|---|---|---|
| Brand | 20 to 30% | Content, founder involvement, community, PR, events |
| Demand | 50 to 60% | Paid media, transactional SEO, structured outbound |
| Expansion | 15 to 20% | Marketing to the installed base, upsells, referrals |
The point isn't to copy these numbers exactly, but rather to use this breakdown as a diagnostic question: When was the last time someone on your team looked at the marketing budget and asked if the money is going where it should?
Why does this matter now?
Two recent developments make this consideration even more urgent for technology companies:
-
The cost of captured demand is rising structurally. More competitive media auctions, data privacy measures that reduce the effectiveness of targeting, and B2B buyers who are doing more and more research before making any business contact. All of this drives up the cost per lead year after year for those who rely solely on demand.
-
The way buyers conduct their research is changing. A growing portion of the buying journey today takes place on channels that no attribution tool can accurately track: communities, word-of-mouth, and searches using generative AI tools. Companies that invest only in captureable demand remain structurally invisible during this part of the journey.
The first practical step
Before reallocating any budget, here’s the simplest and most revealing exercise: take your marketing spending from the last 12 months and categorize every real spent into one of these three areas. You don’t need accounting-level precision—just honesty.
Most of the time, the results from this spreadsheet are enough to spark the right conversation within the team: not “we need to spend more,” but “we need to spend our money more effectively.”
Frequently Asked Questions
Do these ratios—20/30, 50/60, and 15/20 percent—apply to any company?
No. It’s a starting point for internal discussion, not a hard-and-fast rule. Early-stage companies that don’t yet have a significant customer base tend to invest less in expansion and more in demand. More mature companies with a solid installed base usually reverse this approach gradually.
If my company has never invested in branding, where should I start?
With the smallest possible investment that still requires discipline: recurring educational content (even if simple) and the active presence of the company’s leader on a channel relevant to the target audience. You don’t need a big budget; you need consistency.
How do I know if I'm investing too much in demand?
A common sign is the cost per lead or per customer rising consistently, month after month, with no clear seasonal explanation. This usually indicates that the channel is saturated and that there is no other source of demand besides paid media.
This is the first step in a broader process of positioning and go-to-market analysis, which typically reveals not only where the budget is misallocated, but also why this is happening.
