As a small business owner, one of the most important decisions you’ll make is how much to invest in marketing—and specifically, digital marketing. But knowing what to spend, where to spend it, and how to track ROI can feel like navigating a maze of vague advice and sales pitches.
At Surch Digital, we work with small businesses every day—from roofers to med spas to chiropractors—and this is a question we hear constantly:
“How much should I actually spend on digital marketing?”
Let’s break it down clearly, honestly, and without fluff. You’ll walk away from this post with real numbers, strategic insight, and a smarter way to approach your marketing budget.
Why Digital Marketing Matters More Than Ever
Before we talk dollars, it’s worth understanding why digital marketing deserves a seat at the table—especially for small businesses.
Today, most customers begin their journey online:
- Searching on Google
- Reading reviews
- Scrolling through Instagram
- Checking out local service providers on Google Maps
If your business isn’t showing up in those places, you’re losing market share—guaranteed.
Digital marketing is how you:
- Get found online (SEO and local SEO)
- Drive immediate traffic (Google Ads, social ads)
- Stay visible and build trust (content, email, reviews)
- Turn interest into leads and sales (website + retargeting)
The Industry Rule of Thumb for Budgeting
The Small Business Administration (SBA) recommends that small businesses allocate 7–8% of their revenue to marketing if they’re doing less than $5 million a year in sales—and assuming you have healthy profit margins (10–12%).
But that’s for total marketing. So what portion should go to digital?
In today’s world, at least 50–75% of your marketing budget should be digital—especially if you don’t rely on traditional media like radio, billboards, or print.
Here’s a quick example:
Business Revenue: $500,000/year
Total Marketing Budget (8%): $40,000/year
Digital Marketing Portion (75%): $30,000/year
Monthly Digital Budget: $2,500/month
Of course, not every business fits neatly into that formula. Some industries are more competitive and require a higher spend to break through. Others can see solid results with less, especially in small or underserved markets.
How Much Do Different Digital Services Cost?
Now let’s talk specifics. Here’s what you might expect to pay for various services, either through a marketing agency or reliable freelancer:
| Service | Average Monthly Cost |
| Local SEO | $750 – $2,500 |
| Google Ads Management | $500 – $2,000 (plus ad spend) |
| Facebook/Instagram Ads | $500 – $1,500 (plus ad spend) |
| Website Design or Redesign | $3,000 – $10,000 (one-time) |
| Ongoing Content Creation | $500 – $1,500 |
| Email Marketing | $300 – $800 |
| Google Business Profile Mgmt | $300 – $700 |
Note: Ad spend is in addition to management fees.
If you want a full digital strategy managed (SEO + ads + content + email + GBP), you’ll likely be in the $2,500–$5,000/month range for professional support.
What Impacts How Much You Should Spend?
1. Your Business Goals
Are you trying to maintain your current pace or scale up fast? More aggressive goals often mean a bigger budget. If you’re entering a new market or launching a new service, be prepared to invest more up front.
2. Your Industry
Some industries are hyper-competitive (law, HVAC, roofing, med spas), especially in major cities. Ranking on page one of Google or competing in ad space takes more work—and more budget.
3. Your Market Size
Serving a small town vs. a major metro makes a huge difference. In smaller markets, you might rank faster and pay less for ads due to lower competition.
4. Your Current Online Presence
If you already have a strong foundation—decent traffic, reviews, an optimized website—you might not need to invest as heavily as someone starting from scratch.
5. Your Internal Capabilities
Do you have someone on your team who can create content, post on social, or manage reviews? If not, outsourcing those tasks will add to your budget.
How to Spend Smarter: Prioritizing Your Digital Marketing Budget
Not every channel works equally well for every business. Here’s a general roadmap for small businesses on how to allocate their digital marketing budget:
✅ Start with Local SEO + Website
If people can’t find you or your website looks outdated, they won’t convert. Invest here first—this creates the foundation for everything else.
✅ Then Layer in Paid Ads
Once your site is optimized, ads can help you capture demand instantly. Google Ads are great for high-intent searches. Facebook/Instagram are better for local visibility and retargeting.
✅ Add Content and Email for Nurturing
You’ve attracted the lead—now build the relationship. Blogs, newsletters, and automation keep your brand top of mind and improve SEO.
✅ Build Reviews and Reputation
Don’t forget your Google Business Profile. It’s one of the most powerful (and underutilized) tools for local businesses. Set aside time or budget to manage reviews and posts.
ROI: What Should You Expect?
This is the part most small business owners care about—and rightly so.
If you’re spending $3,000/month, how do you know if it’s working?
That depends on what you’re measuring. Some marketing efforts (like paid ads) can show ROI fast. Others (like SEO) take 6–9 months to hit full momentum. What matters is:
- Are you seeing increased traffic?
- Are you getting qualified leads or calls?
- Are those leads converting into paying clients?
- Is your cost per lead decreasing over time?
Don’t just look at clicks. Look at what’s happening after the click—and work with a partner who can track those metrics for you.
Mistakes to Avoid When Budgeting
❌ Trying to Do It All for $500/month
You can’t expect premium results on a shoestring budget. Choose fewer channels and do them well rather than spreading too thin.
❌ Switching Agencies Every 2 Months
SEO and strategic marketing take time. If you keep jumping ship, you’ll never gain traction.
❌ Not Tracking Results
Whether it’s phone calls, form fills, or foot traffic—make sure you have proper tracking in place so you can connect marketing spend to real business outcomes.
Final Thoughts: What Should YOU Spend?
If you’re just getting started and need foundational support (like SEO, Google Ads, and a solid website), plan for $1,500–$3,000/month as a starting point.
If you’re looking to scale faster, enter new markets, or dominate a competitive niche, you may need to spend $3,000–$6,000/month depending on your goals and market size.
At Surch Digital, we specialize in working with small businesses across industries—from home services to healthcare—and we build flexible strategies based on your budget, goals, and growth timeline.
If you’re wondering what it would cost to grow your business online—and what kind of return you can expect—let’s talk.
No guesswork. No vague promises. Just data-backed growth.
