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Would you know what an appropriate marketing budget is for your business? More importantly, what should you spend on marketing to get the results you are looking for.

Marketing budgets are an intricate part of any modern-day business. As part of any business strategy, a marketing allowance needs to be allocated each year to ensure your business keeps re-engaging your customers and provides the channels for future growth.

But what is the appropriate marketing budget for your business? PSD recently came across this article written by the boffins at News Corp Australia that we thought we would share. It provides a good indication of an online marketing budget, what you should expect, and what is required of you.


Every business needs to make investments in marketing to succeed.

How much you spend depends on want you want to achieve. So you need to set realistic goals whether you are:

  • Starting out
  • Expanding or opening new stores
  • Maintaining awareness and loyalty
  • Launching a new product
  • Totally refreshing or relaunching your brand.

Whatever your objective, as a general rule, you should expect to spend:

  • 5-7% of gross revenue to maintain existing business
  • 7-10% of gross revenue to grow your business and remain competitive
  • 10-15% of gross revenue to conduct an aggressive, ambitious and dominating campaign.


So what can you expect for your budget?

To give you an idea, here is a guide of what can you could potentially get for different spend levels.



Less than $2,000

It’s very difficult to achieve impact for less than $2,000. You need to have faith in your business and marketing strategy then be willing to invest if you expect it to reach its potential.

However, to start, set up your business’ online social media presence as it doesn’t cost anything to get going.



$2,000 – $5,000

This investment will get you the basics of marketing with cheaper marketing options. It will also be self-managed, so you will need to commit a fair amount of your own time and skill to the campaign.

For example, social media platforms and Search engines provide online tools you can set up and manage yourself.

You can expect:

  • Business cards
  • Simple website
  • Self-managed search engine marketing (SEM).



$5,000 – $10,000

A budget this size should be focused on targeted marketing and some professional advice on low-cost marketing.

For example:

  • A more detailed website with content and relationship management functionality
  • Self-managed search engine marketing
  • Consulting to assist with low-cost marketing ideas, social media, and coaching.



$10,000 – $20,000

Spending this much will allow you to start expanding your tactics to reach more potential customers.

These could include:

  • A more advanced website with customer and content management tools
  • An email marketing platform, which includes building and storing a database of clients you can contact regularly about your business
  • A social media campaign managed by a social media consultant
  • Search campaign managed by a search campaign advisor
  • Targeted local print advertising.



$20,000 – $50,000

A budget of this size should allow you to increase your online presence and maintain a consistent advertising presence in the market.

This investment could include:

  • A high-performance website with customer and content management functionality
  • An email marketing platform and solid client database
  • A social media campaign managed by a social media consultant
  • Search campaign managed by a search campaign advisor
  • Consistent local print advertising activity
  • Direct mail campaign (including printing and sending of flyers / brochures).



$50,000 – $100,000

When spending this much you should have the foundations of a high-performance website, a solid client database, search and social campaigns that are managed by expert campaign professionals.

In addition, this investment could include:

  • A sponsored and highly targeted social media campaign across multiple social media platforms
  • Always-on / consistent activity in local print publications
  • Multiple direct mail campaigns throughout the year
  • Quarterly events
  • PR and even some local sponsorship.


Obviously the above is just a guide and depending on your specific business needs and desired outcomes the way you spend the budget may be quite different. Though the obvious truth here that resonates through nearly every aspect in life is you don’t get anything for nothing. Every marketing dollar spent needs to be seen as a strategic investment into the future of your business with clear and defined outcomes. Without clearly defining the purpose and what you want your marketing to achieve leaves your budget and your business to bad outcomes and disappointment.

We can help you develop a strategy for your business. We do this through spending the time to get to know your business and its objectives. Get in contact with us today.



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