How to Set a Marketing Budget for New Developments: 4 Proven Approaches

A well-planned marketing budget is essential for any house-building company. Get it right, and you’ll generate high-quality leads, sell homes faster, and maximise your return on investment. Get it wrong, and you risk overspending or missing opportunities to reach buyers.

There’s no single “right way” to set your budget, but most successful developers use one of four methods—or a combination of them. Whether you’re launching your first project or refining your strategyA comprehensive plan detailing the steps, resources, and methods required to achieve the project's vision and commercial goals. More, here are the four most effective ways to determine your marketing budget.
A. Plan first, cost later – Define your marketing activities and set a budget based on what’s needed.
B. Budget first, plan within limits – Set a fixed budget and prioritise high-impact strategies.
C. Use the GDV formula – Allocate around 2% of your Gross Development Value to marketing.
D. Work backwards from CPL – Determine how many leads you need and base your budget on conversion costs.
Each method has its pros and cons—let’s explore which one works best for you.A.

Option A.
Define Your Marketing Goals, Then Work Out the Cost
One approach is to start with a clear visionA clearly defined and inspiring statement outlining the desired long-term future and ultimate success of a place or project. More of your marketing activities and build a budget around them. This method ensures you allocate funds based on what’s necessary rather than an arbitrary percentage.
How It Works:
List the key marketing activities you’ll need: branding, website development, digital ads, social media, signage, PR, and so on.
Estimate costs for each, based on industry benchmarks or quotes from suppliers.
Add a contingency (usually 10-20%) to cover unexpected expenses.
Pros:
Ensures you have enough budget for everything you need
Gives full control over your marketing strategyA comprehensive plan detailing the steps, resources, and methods required to achieve the project's vision and commercial goals. More
Cons:
Can lead to a higher budget than expected
Requires detailed cost research upfront
This approach is best for companies with specific marketing ambitions and the flexibility to allocate budget accordingly.

Option B.
Set a Budget First, Then Build a StrategyA comprehensive plan detailing the steps, resources, and methods required to achieve the project's vision and commercial goals. More to Match
The reverse approach is to define your marketing budget first—based on available funds or what competitors are spending—then create a plan that fits within those limits.
How It Works:
Decide how much you can afford or are willing to invest in marketing.
Prioritise activities that deliver the highest return on investment (ROI).
Cut or adjust lower-priority items to stay within budget.
Pros:
Keeps costs under control from the start
Forces a focus on high-impact marketing tactics
Cons:
May lead to cutting important marketing activities
Risk of underinvesting in long-term brand growth
This approach is ideal for companies with strict budget constraints or those looking to optimise spending for maximum efficiency.

Option C.
Use the Gross Development Value (GDV) Formula
Many housebuilders base their marketing budgets on Gross Development Value (GDV)—the total expected revenue from property sales. A common rule of thumb is to allocate 2% of GDV to marketing.
How It Works:
Calculate the GDV of your development (e.g., 50 homes at £250,000 each = £12.5M).
Multiply by the industry standard (e.g., 2% of £12.5M = £250,000 marketing budget).
Allocate the budget across different channels: digital, print, events, etc.
Pros:
Scales marketing spend with project size
Aligns with industry best practices
Cons:
Not always flexible for smaller developments
May not account for unique marketing challenges in some locations
This method works well for mid-to-large-scale developments and ensures a realistic investment in brand visibility and lead generation.

Option D.
Work Backwards from Cost Per Lead (CPL) & Sales Goals
For data-driven marketers, the Cost Per Lead (CPL) approach ensures every pound spent is tied to measurable results. This method focuses on the number of leads you need to generate sales and calculates the marketing budget accordingly.
How It Works:
Estimate how many homes you need to sell (e.g., 50 units).
Determine the number of leads required to achieve those sales (e.g., 500 leads if your conversion rate is 10%).
Calculate your CPL (e.g., if a lead costs £100, total marketing spend should be 500 x £100 = £50,000).
Pros:
Highly measurable and results-focused
Ensures efficiency in marketing spend
Cons:
Requires accurate conversion data
May overlook brand-building activities
This approach is best for performance-driven campaigns and companies that track marketing metrics closely.

Which Method Is Right for You?
The best budgeting approach depends on your business model, risk tolerance, and growth strategyA comprehensive plan detailing the steps, resources, and methods required to achieve the project's vision and commercial goals. More. Many house builders combine methods to strike the right balance. For example, using the GDV formula to set an overall budget, then adjusting spending based on CPL performance.
Regardless of the method you choose, investing in strong branding, digital presence, and community engagementOngoing programs designed to involve local residents and businesses in the life and future of a place. More is key to long-term success.
 
Need a Smarter Marketing StrategyA comprehensive plan detailing the steps, resources, and methods required to achieve the project's vision and commercial goals. More? We Can Help.
At DS.Emotion, we specialise in branding, digital marketing, design, and place activationPlace activation is the process of transforming a space, like a park, square, or even a business park, into a more vibrant and engaging place through tempo More to help house builders attract buyers and drive sales. Whether you’re launching a new development or refining your strategyA comprehensive plan detailing the steps, resources, and methods required to achieve the project's vision and commercial goals. More, our expertise ensures your marketing budget delivers real impact.

Get in touch to see how we can support your next project.