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How much do insurance companies spend on marketing?

Insurance companies spend around 7-8% of their revenue on marketing, on average.

This page will break down marketing budgets for insurance companies through the following sections:

If you want to jump into planning your 2025 marketing budget, check out our free budget planner below!

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How much do insurance companies spend on marketing?

Insurance companies should plan to spend an average of 7-8% of their revenue on marketing. That figure will change based on your business size, goals, and customer focus.

Insurance marketing budget breakdown

We can break down your marketing budget into different channels to see what you can expect to spend. Here is a look at the typical insurance marketing budget breakdown, based on typical digital marketing prices for top marketing channels:

2025 Insurance Marketing Spend

Channel Monthly Spend
Paid Advertising
*Including Google Ads, geofencing ads, programmatic ads, etc.
$100-$10,000
Search Engine Optimization (SEO) & Local SEO $2,500-$7,500
Social Media $100-$5,000
Email Marketing & SMS $50-$100
Local Optimized Content Marketing $5,000-$10,000
Review Management $5,000-$10,000

Factors that impact insurance marketing budgets

Part of planning an insurance marketing budget is understanding the factors that affect it. Here are some considerations to note for insurance agency marketing budgets:

  • Competitive markets: Whether you run a small company or a larger enterprise, you have to deal with competitive markets for insurance.
  • Rising customer acquisition costs (CAC): Acquiring new customers costs more, which means you have to set aside a corresponding amount to handle onboarding customers.
  • Keeping marketing compliant: You may spend more time or money making sure your marketing materials are compliant with stringent regulations.

How to create an insurance marketing budget

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How to Create Your 2025 Insurance Marketing Budget

  • Allocate 7-8% of your total revenue for marketing
  • Reserve between 5-10% of your marketing budget to invest in new marketing strategies

Now, we can start prepping your insurance marketing budget for 2025. Follow the steps below to build a marketing budget that fits your business:

  1. Define your goals to drive insurance sales and retention
  2. Decide how much to spend on marketing
  3. Allocate your spending across key channels
  4. Adjust your marketing strategy to maximize policy acquisition ROI

1. Define your goals to drive insurance sales and retention

The first step in creating a marketing budget is setting goals for your marketing campaigns. This step will give you something to aim for as you determine how much you want to spend on marketing.

SMART goals, or those that are specific, measurable, achievable, relevant, and time-bound, can help you with your goal setting. A SMART goal for insurance companies might be something like, “We want to boost policy renewal by X percent over the next six months.”

If your goal is to encourage existing clients to renew their policies, you can find the channels and tactics that help you achieve that goal.

2. Decide how much to spend on marketing

Next, you need to define how much you want to spend on marketing. If you want to be competitive, aim for an average of 7-8% of your total revenue. You can also spend a different amount, depending on your growth goals and available funds.

For example, newer insurance agents might invest more upfront to get their name out there and start building some experience. However, a larger, established enterprise might not need to spend as large of a percentage on their marketing, since they likely have a good number of policyholders already.

3. Allocate your budget across key channels

You must decide next how you will spend the funds outlined in step two. Look at your current marketing strategies and see what is working for you — that’s where you can start allocating your budget.

Looking at your existing marketing strategies can tell you where to allocate. If you have strategies that bring in a lot of revenue for your business already, focus your budget on them.

Marketing tools and technology can help you track your campaign results. Be sure to invest in the right tech to help your strategies succeed.

4. Adjust your marketing strategy to maximize policy acquisition ROI

Your marketing budget will grow and change to accommodate your business. Plan time during each quarter to review your current budget, marketing channels, and results, and adjust as necessary. Optimize your budget for the channels that will give you the highest ROI!

FAQs on insurance marketing budgets

Want to learn more about marketing budgets for insurance agents? Check out our FAQ below!

How much should insurance companies spend on marketing?

Insurance companies should plan to spend around 7-8% of their revenue on marketing, on average.

How much do insurance agents spend on marketing?

Insurance agents can spend between 3-8% of their revenue on marketing. This number is higher than the rate for overall insurance companies since agents want to drive more growth and have to stand out against other individuals with fewer resources.

How much do insurance companies spend on advertising a year?

The top four insurance agencies spent $3.7 billion on advertising in 2023, a decrease from previous years. For example, in 2023, GEICO’s advertising spending fell to $838.2 million, about $443 million less than in 2022.

Turn your marketing budget into a revenue-driving tool with WebFX

Even with all the right information, it’s still challenging to create a marketing budget. By partnering with WebFX, you get a team of experts who can use your funds to select revenue-driving channels and grow your company.

We help insurance companies like yours with custom digital marketing solutions, so you only invest in the channels and services that drive proven results for your business. With our help, you can start getting more out of the same budget without adding any extra work for your staff.

Want to learn more? Contact us online and see how we can start transforming your business today!

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  • Renowned for our communication and transparency

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