How Much Should You Budget for Digital Marketing?
Let’s get down to the nitty-gritty. I am talking about the big one - BUDGETS. For every small business, managing money wisely is extremely important. In this article, I will give you a methodological breakdown of how to approach the budget for digital marketing strategies (everything from social media, paid search, SEO, and all in between).
The amount a small business should budget for digital marketing depends on its size, industry, goals, and revenue. However, a good rule of thumb is:
✅ 5-10% of total revenue → If you’re maintaining your current presence
✅ 10-20% of total revenue → If you’re looking to grow aggressively
Breaking It Down by Business Type
💡 New Businesses (Startups) → Should invest more (15-20%) since they need to build brand awareness and attract customers.
💡 Established Businesses → Can spend 5-10% since they already have a customer base and brand recognition.
💡 Service-Based Businesses → Might invest more in SEO, content marketing, and social media to generate leads.
💡 E-commerce Businesses → Often spend 10-15% on paid ads and social media marketing since their success depends on online sales.
Allocating the Budget Across Channels
Here’s an example of how a small business might divide its digital marketing budget:
30-40% Paid Ads (Google Ads, Facebook/Instagram Ads)
20-30% SEO & Content Marketing (blogs, website optimization)
10-20% Social Media Marketing (organic growth, influencer partnerships)
10-15% Email Marketing (newsletters, customer retention)
5-10% Website Maintenance & Tools (hosting, analytics, software)
What If You Have a Small Budget?
If you're working with limited funds:
✅ Focus on SEO & content marketing (free organic traffic over time)
✅ Leverage social media for organic reach
✅ Use email marketing (a low-cost way to keep in touch with customers)
✅ Invest in small-scale paid ads ($100-$500/month) to test what works
This system may not apply directly to every business but there is always an option for every budget that can produce a well-rounded digital marketing plan. Let’s have a chat about a plan that works best for you.
