How Much Should You Really Spend on Digital Marketing?
Feel like you’re pouring money into marketing without knowing if it’s actually working? You’re not alone. For many business owners, deciding how much to invest—and where—feels more like guesswork than strategy.
But without a clear and well-planned digital marketing budget, you risk wasting precious resources or falling behind competitors who are marketing smarter—not just harder.
So, how much should you be spending, and where does that money actually go? Let’s break it down.
Why Most Businesses Get Their Marketing Budget Wrong (And How to Fix It)
Digital marketing isn’t a “nice-to-have” anymore—it’s how you stay visible, generate leads, and keep growing. The right budget helps you:
- Build brand awareness
- Convert leads into paying customers
- Stay competitive in your market
- Generate measurable returns (a.k.a. ROI)
But even with a solid spend, if you’re not putting it in the right places, you won’t see results. That’s why a strategic, data-backed approach is essential.
What’s the Right Amount for You to Spend on Marketing?
There’s no one-size-fits-all answer, but here are general benchmarks based on business type and goals:
- Small businesses: 5–10% of total revenue
- Mid-sized companies: 7–12% of total revenue
- High-growth or scaling businesses: 11–20% of total revenue
Want a quick reference? If your business brings in $500k annually, your yearly marketing budget could range from $25,000–$100,000, depending on growth targets.
Industry-Specific Marketing Budget Benchmarks
Here’s what companies in different industries typically spend:
- Retail & E-Commerce: 10–20%
- B2B Services: 5–10%
- SaaS & Tech: 12–20%
- Healthcare & Medical: 5–12%
- Financial Services: 8–15%
Use these as starting points—but always consider your unique audience, growth stage, and goals.
Where Should Your Marketing Budget Actually Go?
Once you’ve defined your budget, the next step is deciding how to invest it wisely. Here are the key areas that deliver the most value:
1. Website Design & Development (10–20%)
Your website is your online storefront. A slow or outdated site turns customers away before they even get to know you. Invest in:
- Mobile-responsive design
- User experience (UX) optimisation
- Fast loading speeds and SEO-friendly code
- Security, hosting, and ongoing updates
2. Search Engine Optimisation (SEO) (10–15%)
Long-term organic visibility starts here. Budget for:
- Keyword research and SEO strategy
- On-page and technical optimisation
- Link-building and authority development
- Local SEO (if targeting specific regions)
3. Pay-Per-Click Advertising (PPC) (20–30%)
PPC drives fast, measurable traffic. Think:
- Google Ads (Search & Display)
- Social media paid ads (Facebook, Instagram, LinkedIn)
- Retargeting campaigns
- A/B testing for better ad performance
4. Content Marketing (10–15%)
Content builds trust, educates, and converts. Your budget should cover:
- Blogs and Search Engine Optimised articles
- Case studies and whitepapers
- Video content (e.g. explainers or testimonials)
- Email marketing content
5. Social Media Marketing (10–15%)
Don’t just post for the sake of it. Invest in:
- Organic content strategies
- Paid promotions
- Influencer partnerships
- Community management and engagement
6. Email Marketing & Automation (5–10%)
Still one of the highest ROI channels. Focus budget on:
- Segmented and personalised campaigns
- Automated lead nurturing
- A/B testing subject lines and CTAs
- CRM integrations (like Klaviyo or Mailchimp)
7. Conversion Rate Optimisation (CRO) & Analytics (5–10%)
There’s no point driving traffic if it doesn’t convert. Prioritise:
- Landing page testing and design
- Heat mapping and user journey analysis
- Funnel optimisation
- Performance reporting and KPIs
Common Budget Mistakes to Avoid
- Trying to do everything with too little budget
- Neglecting CRO and analytics
- Spreading spending across too many underperforming channels
- Ignoring content quality and consistency
- Forgetting about customer retention
6 Ways to Get More from Your Digital Marketing Spend
- Set Clear Goals and KPIs
Are you trying to grow traffic, increase leads, or boost sales? Define success upfront.
- Track Everything
Use tools like Google Analytics, Meta Ads Manager, and HubSpot to track ROI in real time.
- Double Down on What Works
Once you know which channels convert best, scale those efforts.
- Automate Wisely
Tools like Klaviyo or Mailchimp can streamline campaigns without losing personalisation.
- Continuously Test & Optimise
From email subject lines to ad visuals, test everything. Then refine.
- Invest in Retargeting & Loyalty
Acquiring new customers is expensive. Retarget lost leads and reward existing ones.
Planning a marketing budget can be overwhelming. But without one, you’re flying blind.
And worse—you’re probably wasting money on tactics that aren’t moving the needle.
Let’s Build a Budget That Works Harder for You
At Accentuate Web Design & Marketing, we build custom digital strategies that stretch every dollar and drive results. Whether it’s SEO that actually ranks, PPC that pays off, or content that converts—we’ve got your back.
Ready to finally take control of your marketing spend?
Contact us today and let’s develop a strategy that’s tailored, data-driven, and built to grow.
