How Much Should You Spend on Digital Marketing?
How to set a sensible marketing budget — and spend it where it counts.
There’s no one-size-fits-all answer to how much to spend on digital marketing — it depends on your goals, margins and growth ambitions. But you can set a sensible figure with clear thinking. Here’s how.
The goal isn’t to spend the most; it’s to spend profitably.
Start with your goals and what a customer is worth
Begin with what you want to achieve and what a new customer is worth to you. That tells you what you can afford to invest to acquire one profitably. A common rough guide is a percentage of revenue, but your numbers should drive it.
When you know your numbers, budgeting becomes a calculation.
Focus, don’t spread thin
A modest budget concentrated on the right channels beats the same money spread thinly across everything. For most local businesses, that means starting with the highest-return channels — often local SEO and targeted ads — and expanding as they work.
Focus turns a limited budget into real results.
Measure and adjust
Track what each channel returns and shift budget toward what works. Marketing spend should always follow results. With proper tracking, you can invest with confidence rather than guesswork.
We help businesses spend their marketing budget where it delivers the best return.
Getting value at every budget level
The most important principle at any budget is focus: doing one channel well outperforms spreading a small budget thinly across five. A business with £500 per month for digital marketing should own local SEO and Google Business Profile before running paid ads. A business with £2,000 per month can add PPC to proven organic foundations.
Track cost per enquiry, not just cost per click. If Google Ads costs £200 per month and generates ten genuine enquiries, the cost per lead is £20 — worth comparing directly against what a similar lead from any other source costs you. That comparison makes budget decisions much clearer than looking at ad spend in isolation.
Common questions.
What’s a typical marketing budget?
Can you work with a small budget?
How should I split my budget across different marketing channels?
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