How Much To Spend On Online Marketing?

Updated on 24 January 2022 3 min Read
“How Much To Spend On Online Marketing?”

The frequently asked question from online business entrances “How much should I spend on my websites or Online Marketing? The important question you need to figure out is what is your marketing budget?” If your organization has no idea about it and spending money, you have all around is the worst practice. Here we will assume as if you already have a marketing budget or are convinced to quickly create one. Below information will help you do the same.

How much budget should go into marketing?

The answer to this question depends on many factors

  • You annual revenue
  • Your Industry
  • What your competitors are doing?
  • What are you trying to accomplish?
  • What stage is your business in?

What I have seen most often is a company should spend 2-10% of their annual revenue into marketing. This percentage is backed by several credible sources. Basically, smaller your business larger percentage you need to invest to make a splash into the market. Below is chart what budget looks like for business of varying size.

Spending based on revenue:
Revenue 2% 4% 6% 8% 10%
$500,000 $10,000 $20,000 $30,000 $40,000 $50,000
$1,000,000 $20,000 $40,000 $60,000 $80,000 $100,000
$5,000,000 $100,000 $200,000 $300,000 $400,000 $500,000

Where you fit into the percentage depends upon the internal costs if you have some items in house.

How much of my budget should go to the website?

Now we are on to the original question how much to spend on website marketing. Let’s have a look at questions to help determine this:

  • What marketing efforts you currently make for your business?
  • How important is your website to your business or organization?
  • What percentage of current customer visits your website when evaluating your organization as their option?

Depending on your answer, this will represent a significant part of your total marketing budget. To make it easier keep in your mind that 75% of your marketing budget should go to your website and marketing it. Some of the companies may understand the figure and rest will think it’s too much, as they might not have spent so much on the website and its marketing in the past. And these are the companies that are usually reactive to competitors going ahead of them using some technology or marketing.

How should I break up my Website budget to get most return?

The web budget will now split into various strategies starting from creating a website, redesigning a website, Updating, Search Engine Optimization, Social Media Optimization, Email Marketing and so on. But what percentage of budget should each carry is very important factor to figure out. So here we go,

  • Website redesign/updates – 35%
  • Search Engine Optimization – 15%
  • Search Engine Advertising – 20%
  • Social Media Marketing – 12.5%
  • Email Marketing – 5%
  • Rest / Ongoing practices – 12.5%

I have heard from many what if I have some cheaper online option to create a website or I have got an inexpensive quote? Well my answer to them is do you think they are reliable, know about your business, has the ability to handle one of the most important aspects of your business or provide quality of services as per their proposal? I advise taking this decision carefully as this will not result in wasting dollars but harming your online persona. Here are some important thoughts to consider for your website:

  • Your employees and prospective clients alike have confidence in your brand if they see a website representative of your organization
  • Your website is a huge potential source for new business leads.
  • Your website is a great source to educate your users about you.
  • Employees applying or considering applying to your organization base their impressions of your organization heavily upon what they see on your website.

I hope you found this article helpful. Keep in touch for more updates and Web hosting services.

The Author

A passionate Digital Marketing Expert and Content Writer working with MilesWeb Internet Services Pvt. Ltd. All I love to do is surf internet strengthen my writing skills and gain knowledge with each and every article I write.