Digital Marketing News
Small Business Grants in Australia That Can Fund Marketing
How to find and apply for small business grants in Australia, what they can pay for, and when marketing can be part of a funded project.
How much should a small business spend on marketing? There’s no single right number. A good marketing budget starts from what a new customer is worth to you and how many you need, then sets an amount you can sustain for long enough to see results, split across the few channels most likely to reach your customers. This guide shows three ways to set a marketing budget, with a worked example and real price points.
What is a marketing budget?
A marketing budget is the amount you plan to spend on marketing over a set period, usually a year, broken down by month and channel. It covers paid media (ads), services (an agency, freelancers or staff time), tools (email and design software) and production (photos, video, printing). Writing it down stops marketing from becoming random spending, and lets you see what each dollar brings back.
How much should my marketing budget be?
It depends on your goals, margins, competition and stage of business. A new business trying to build awareness, or one in a competitive market, usually needs to spend more than an established business that gets steady referrals. Rather than copying a general percentage, work out a figure that fits your own numbers using one of the methods below.
How do you calculate a marketing budget?
1. The customer value method
Work backwards from what a customer is worth:
- Work out the average gross profit from a new customer over the time they stay with you.
- Decide how many new customers you want each month.
- Decide how much of that profit you’re willing to spend to win each customer.
- Multiply: customers wanted × spend per customer = monthly budget.
2. The goal and task method
List what you need to do to reach your goal (for example, a better website, SEO for three services, and Google Ads in your busy season), price each task, and add them up. This is the most practical method for small businesses because it ties every dollar to an action.
3. The percentage of revenue method
Some businesses set marketing as a fixed percentage of revenue. It’s simple and keeps spending in line with income, but it can mean cutting marketing just when you need more customers. If you use it, check the result against the customer value method.
What does a marketing budget look like in practice?
These numbers are made up to show the maths. A regional trade business earns about $1,500 gross profit from an average new customer. It wants 6 more customers a month and is willing to spend up to a third of that profit to win each one ($500).
- 6 customers × $500 = $3,000 a month for marketing.
- That might cover SEO from $1,000 + GST a month, plus Google Ads management and ad spend in the busy season, plus time for reviews and social posts.
- After three to six months, the business compares the actual cost per new customer with its $500 limit and adjusts.
How should you allocate your marketing budget?
Marketing budget allocation should follow where your customers are and what each channel does:
| Need | Where the budget usually goes |
|---|---|
| Be found when people search | Website, SEO, Google Business Profile, Google Ads |
| Build awareness locally | Social media, sponsorships, events, local media |
| Win back and keep customers | Email, reminders, referral rewards |
| Look credible | Professional photos, branding, reviews |
Keep a small part of the budget for testing one new idea at a time, and move money from channels that don’t bring in enquiries to those that do.
How to allocate budget for digital marketing
Start with the foundations (a mobile-friendly website, a complete Google Business Profile and tracking), then put most of the ongoing budget into one or two channels that reach your customers, such as SEO and Google Ads for search, or social media for awareness. Review monthly using cost per enquiry.
What does marketing cost? Real price points
To help you budget, here are our own prices:
- SEO: from $1,000 + GST a month, no lock-in contract.
- Social media management: from $1,500 + GST a month for one platform.
- Social media advertising: from $2,000 + GST a month plus 10% of ad spend, suited to ad spend of $500 to $2,000 a month (ad spend is paid to the platform).
- Websites: from $5,000 + GST, or 6 monthly payments of $833 + GST.
- Marketing partnerships: from $4,500 + GST a month for 28 hours of work across channels.
See our pricing page for the full list.
How much marketing budget does a startup need?
A startup’s first budget usually goes on the basics: a logo, a Google Business Profile, a simple website or landing page and one social media channel. Our New Business Package covers those for $4,995 + GST. After that, set aside an ongoing amount for the channel most likely to bring early customers, and measure it closely.
How do you spend your marketing budget wisely?
- Track everything: know which channel each enquiry came from.
- Give channels time: ads work quickly; SEO and content take months.
- Spend before your busy season, not during it.
- Don’t spread too thin: two channels done well beat six done badly.
- Review monthly and reset the budget every quarter.
Our guide on how to measure marketing ROI shows how to check what each channel brings back.
How we help
We help small businesses set a budget that matches their goals, then spend it where it works. Our small business marketing service starts with your numbers, and we’ll tell you if a smaller spend will do the job for now.
Frequently asked questions
What do small businesses spend on marketing?
It varies widely by industry, size and goals. Instead of relying on an average, use the customer value method above to work out what makes sense for your business.
Should my marketing budget include staff time?
Yes. If you or your staff spend hours on marketing, count that time. It helps you compare doing it yourself with paying someone.
Is marketing a tax-deductible expense?
Many marketing costs are business expenses, but how you claim them depends on what they are. Check with your accountant.
What if I can’t afford much marketing?
Start with free and low-cost basics: your Google Business Profile, reviews, social posts and email. Our list of marketing ideas for small business has more.
The short version
Set your marketing budget from your own numbers: what a customer is worth, how many you need and what you can sustain. Put it into the few channels that reach your customers, track the cost per enquiry, and adjust every month.
If you’d like help setting your marketing budget, book a free 30-minute discovery call.
