If you’re a local business owner—whether you’re a roofer, chiropractor, dentist, med spa, or lawyer—chances are you’ve asked this question: “How much should I spend on marketing?” It’s a good question, and the truth is, the answer isn’t one-size-fits-all. But with the right strategy, budget, and support, marketing can become your most powerful business growth tool.
Let’s break it all down: how to think about your budget, what to expect from different spend levels, and how to make sure every dollar counts.
Why You Should Have a Marketing Budget (and Stick to It)
Running a business without a marketing budget is like driving without a GPS—you might eventually get where you’re going, but it’ll take longer, and you’ll waste a lot of gas (money, time, and energy) along the way.
Here’s why a set marketing budget matters:
- It forces you to prioritize. Instead of trying everything at once, you invest in the things that really work.
- It keeps you consistent. The #1 marketing mistake we see from small businesses? Stopping when things get “busy.”
- It’s easier to measure ROI. You’ll know what’s working, what’s not, and what to scale.
The General Rule of Thumb: 5%–10% of Revenue
Most experts (and agencies like us) recommend allocating 5%–10% of your gross revenue toward marketing. For example:
- If your annual revenue is $500,000, your marketing budget should be between $25,000 and $50,000 per year, or about $2,000 to $4,000 per month.
- Higher-growth businesses or newer ones trying to capture market share might push that up to 12–15% for a limited time.
But again—these numbers are starting points. Your ideal budget depends on your industry, goals, and competitive landscape.
Factors That Impact How Much You Should Spend
Here are some of the big considerations when building your local marketing budget:
1. Your Industry
Some industries are more competitive than others. For example, local SEO for lawyers and med spas is much more aggressive (and expensive) than, say, for a dog groomer.
If you’re in a saturated niche, you’ll need to invest more—especially in the beginning—to stand out.
2. Your Local Market
Marketing in New York City is not the same as marketing in Boise. In larger cities or more affluent areas, ad costs (especially for Google Ads or social media) will be higher, and your website will need to be more impressive to compete.
3. Your Business Goals
Are you trying to double your business in the next 12 months? Or are you looking for steady, predictable growth? Bigger goals often require bigger investments—especially in the early stages.
4. Your Current Visibility
Do you already rank on Google? Do you have 100+ five-star reviews? Is your website converting traffic into leads? If you’re starting from scratch, your budget may need to include some foundational work (like web design, content, or review generation) before it can start performing at a high level.
What You Can Expect at Different Budget Levels
Here’s a rough breakdown of what typical budgets might look like and what’s possible at each level:
$500–$1,000/month
- Good for basic reputation management, minimal GBP posting, and light social media help.
- Results will be slow unless you’re in a very low-competition niche.
- Best for businesses just getting started or those looking to test the waters.
$1,500–$3,000/month
- Solid for a monthly SEO campaign, Google Business Profile management, and some paid ad testing.
- You can expect increased visibility in local search, more leads over time, and a better understanding of what’s working.
- Ideal for most service-based businesses looking to grow predictably.
$3,500–$5,000+/month
- You can do much more here: full SEO strategy, website content, Google and Meta ads, conversion rate optimization, and more.
- With consistent implementation, this level can generate high volumes of quality leads and measurable ROI.
- Best for businesses in competitive markets or aiming for aggressive growth.
Where Should the Budget Go?
Here’s how to think about where that money should be allocated:
- SEO: A long-term investment that helps you rank higher in Google, drive organic traffic, and get leads without paying per click.
- Website Optimization: Your site is your digital storefront—if it’s outdated, slow, or confusing, it’s costing you.
- Google Business Profile Management: Essential for local visibility and maps rankings.
- Paid Ads: Fast results, but requires skill. Can be high-ROI when properly managed.
- Email Marketing & Retargeting: Great for re-engaging past leads and improving customer retention.
- Content Marketing: Builds authority, trust, and improves SEO rankings.
How to Make Sure You’re Getting ROI
Investing in marketing should feel like fueling growth—not burning money. Here’s how to make sure you’re getting value:
- Track leads—know how many calls, form submissions, or bookings you’re getting from each channel.
- Monitor cost per lead—are you paying $10, $50, or $150 to acquire a customer?
- Use tools like call tracking and analytics—they’ll show you what’s driving results.
- Work with a partner who shows the data—not just vanity metrics, but true performance indicators.
What Surch Digital Recommends
At Surch Digital, we believe in building long-term, ROI-focused strategies that grow with your business. We don’t do cookie-cutter campaigns. We assess your goals, market, and competition, and then recommend a plan that fits your growth trajectory.
We also offer something most agencies don’t: guarantees. If you don’t hit the agreed-upon benchmarks, we work for free until you do. That means you can invest in marketing with confidence—because your growth is our goal.
Final Thoughts
Marketing isn’t an expense—it’s an investment in the future of your business. Whether you’re looking to book more appointments, land bigger clients, or just be the go-to name in your city, the right marketing strategy (and budget) can get you there.
Want a custom marketing budget breakdown for your industry and goals? Let’s chat. At Surch, we’re here to help you win locally, grow predictably, and market without the stress.
