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How much should a small business spend on digital marketing?

A practical guide to setting a digital marketing budget based on revenue, industry, and growth goals.

● Question
We are a trades business doing about $800K revenue and currently spend nothing on digital marketing. We get most work from word of mouth but it is inconsistent. How much should we realistically budget, and where should we spend it first?
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2 Answers

The general rule for SMEs is 5-10% of revenue on marketing. At $800K, that is $40,000-$80,000 per year. But starting from zero, begin with Google Ads targeting service-specific keywords in your area — $1,500-$2,500/month with proper conversion tracking. Simultaneously set up your Google Business Profile properly. Once those foundations work, add SEO at $1,000-$2,000/month for long-term lead generation. Social media is lower priority for trades unless you do visually impressive work.
Answered 24 Apr 2026
I would push back on the percentage approach at your stage. Start with just two things: a properly optimised Google Business Profile (free, 2-3 hours to set up) and a small Google Ads campaign ($1,000/month). Track every lead. After 90 days you will know your cost per lead and can scale what works. The biggest mistake is jumping from $0 to $5,000/month without tracking in place.
Answered 24 Apr 2026
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