What is digital marketing?

The objective of digital marketing is straightforward — expand your business using online promotional and marketing techniques. These methodologies center around digital tools, spanning from search engine optimization to social media marketing, and beyond.

How much should a company spend on digital marketing?

• Small Business

  Percent of Revenue to spend on marketing: 7% - 8% minimum.

• Mid-sized Business

  Percent of Revenue to spend on marketing: 10% minimum.

• Enterprise

  Percent of revenue to spend on marketing: 15% minimum.

Regardless of your business's scale, it's crucial to investigate the appropriate budget allocation for digital marketing. The pricing models of digital marketing agencies differ considerably, with many firms advertising unusually low prices — a factor your company should be cautious about when engaging a marketing agency.

In the vast majority of scenarios, the quality of digital marketing services corresponds directly with the price tag. Hence, services marketed as "inexpensive" often fall short of delivering the desired outcomes.

“The Average Digital Marketing Budget Ranges from $30K to $150K per year.”

— Scale Selling

This is why establishing a sensible budget for digital marketing is crucial. If you aim to reduce costs to the bare minimum, the quality of service you receive will, unfortunately, mirror that.

So, what is a sensible budget?

Numerous variables, such as your business's size and the extent of your project, impact digital marketing budgets. However, the typical annual digital marketing budget for small to medium-sized businesses (SMBs) spans from $30,000 to $150,000. Remember that digital marketing is a continual process, so your budget might adjust as your business evolves.

For further advice, consider this table, which reveals the proportion of revenue that various sectors should allocate to marketing:

• Technology

  % OF REVENUE TO SPEND ON MARKETING: 10%

• Retail Wholesaling

  % OF REVENUE TO SPEND ON MARKETING: 4%

• Manufacturers

  % OF REVENUE TO SPEND ON MARKETING: 2%

• Healthcare

  % OF REVENUE TO SPEND ON MARKETING: 9%

• Insurance

  % OF REVENUE TO SPEND ON MARKETING: 9%

• Finance

  % OF REVENUE TO SPEND ON MARKETING: 9%

• Energy

  % OF REVENUE TO SPEND ON MARKETING: 8%

• Education

  % OF REVENUE TO SPEND ON MARKETING: 12%

• B2C Services

  % OF REVENUE TO SPEND ON MARKETING: 19%

• Packaged Goods

  % OF REVENUE TO SPEND ON MARKETING: 9%

• Consulting

  % OF REVENUE TO SPEND ON MARKETING: 8%

• Construction

  % OF REVENUE TO SPEND ON MARKETING: 3%

• Communications

  % OF REVENUE TO SPEND ON MARKETING: 9%

• Real Estate

  % OF REVENUE TO SPEND ON MARKETING: 13%

We understand navigating the digital marketing landscape can be a complex endeavor, but the potential return on investment makes it a vital strategy for businesses of all sizes. Establishing a well-structured budget and partnering with a trusted digital marketing agency like Scale Selling can drive growth and elevate your brand's visibility online. As we journey into an increasingly digital future, understanding and implementing effective online marketing strategies is no longer a luxury—it's a necessity for business success. Stay connected, stay updated, and leverage the power of digital marketing for your business growth in 2023 and beyond.