How Much Should You Spend on Digital Marketing?

There is no single marketing budget that works for every business. A good budget should match the size of the opportunity and the capacity of the business to respond to enquiries.

Your budget can depend on:

• Industry
• Target location
• Competition
• Product or service price
• Customer lifetime value
• Campaign objective
• Existing brand awareness
• Sales team capacity

Instead of focusing only on the amount spent, businesses should monitor metrics such as cost per lead, qualified leads, conversion rate, customer acquisition cost and revenue generated.

Start with a test, then scale

For many businesses, the best approach is to start with a measured campaign, learn from real data and scale the channels that produce qualified enquiries. Budget planning becomes easier once you know what a lead costs and how many leads become customers.