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How much should you invest in digital marketing for your business?

When you’re looking to invest in digital marketing for your business, you may be wondering how much you should be investing. Although you already know that digital marketing is a smart, effective move towards business success, defining the amount that you invest with a digital marketing partner will be based on your budget and your requirements - it really is ‘how long is a piece of string?’

We’ve created a few scenarios based on a Yellow service offering to give you an idea of a typical spend when investing in digital marketing and perhaps how your business needs would compare.

How much you invest in marketing your business online is just the start. For more advice download “A busy business owner’s guide to digital marketing

Scenario 1 - Jack

Jack owns an engineering company. He has a website that his nephew built for him last year but he has no idea what to do with it now or how to update it. He’s also facing stiff competition from a young competitor in the area who has a really sleek website. He needs to stay ahead, but what’s the next step? 

We would suggest a new website for Jack, but instead of a custom-build, a template would be the best option. Templates are easy to update, which means after the initial set-up, Jack could be taught how to make basic changes to the website so he can do this in the future. This approach would be an approximately $1,000 set up, with $50 per month for support and hosting. A basic Google AdWords campaign would also be suggested to attract more local traffic to his site, which would be an additional $300 spend per month.

Scenario 2 - Helen

Helen is a florist. She has a website that’s about three years old and is having difficulty tracking her orders. Mother’s Day is coming up, one of her biggest days of the year, and she can’t lose business to her competitors - what should she do and how much should she invest?

We would suggest Helen invest in an e-commerce website, which is approximately $2,000 for set up, with an ongoing charge of $60 per month for support and hosting. We would also suggest she incorporate search marketing efforts (cost-dependent) including SEO, search and display advertising, analytics and a Yellow Online Profile. Print could also be considered. This ongoing strategy would cost between $1,000 - 3,000 per month. 

Scenario 3 - Margaret

Margaret has a successful graphic design agency and a beautiful website (of course she does!). But despite her great looking site, Margaret has no idea how to promote her business online. A while back she sought out a specialist SEO agency which cost her a fortune, but lately, she isn’t getting much in the way of new business. What now? Her website is already in great shape so nothing needs to be done here. But in order to get new traffic to her site, we would offer to analyse her current SEO set up and provide ongoing monitoring and recommendations for $750 a month. We would also recommend implementing a Google AdWords campaign at $1,000 spend per month.

As you can see, the amount you invest in digital marketing is based on your current situation, the market you're in, and your business requirements.