Learn more about how you can determine an appropriate marketing budget for your business.
Hey and welcome back to SEO on the Go! I’m Ryan Kelly, your host. Today I’m going to be answering the question “How much should I spend on digital marketing?” I get asked that pretty regularly, but it’s really two questions: how much should I be spending on marketing and how much should I be spending on digital marketing?
Digital marketing is only a piece of the marketing and advertising puzzle. So pre-pandemic, before the middle of 2020, small and medium-sized businesses were estimated, with the best growth, to be spending between seven and eight percent of their gross revenue on their marketing. Seven or eight percent of their gross revenue is their marketing budget.
In the middle of, and before, the pandemic in 2020, 50% of that should have been spent on digital marketing. So if you’re a million-dollar company, you should be spending around $80,000 to $90,000 on your marketing. If you’re really working towards aggressive growth, you should be spending before the pandemic a minimum of half of that on digital marketing and I would argue now that during and post-pandemic is far more competitive and necessary to be online and more aggressive.
So having said that, you should probably be closer to 60% or 70% of that seven or eight percent gross on your digital marketing spend. So my name is Ryan Kelly, if you liked the video please like it, subscribe to the channel if you love this kind of stuff, and until next time, drive safely!