How Much Do Small Businesses Spend Per Month on Digital Marketing?
Spend the right amount of money to bring in an ROI
In the modern digital landscape, small businesses must allocate resources to various aspects of digital marketing to remain competitive. Understanding the average monthly expenses can help businesses plan their budgets effectively. Below, we break down the typical costs for social media management, website design, marketing consulting, and influencer marketing for small businesses based on data from Google.
1. Social Media Management
The cost of social media management can vary widely based on the scope of services and the expertise of the provider.
Basic Packages ($500 - $1,000/month): Typically include account setup, basic content creation, and scheduling posts across one or two platforms.
Intermediate Packages ($1,000 - $3,000/month): These often offer more comprehensive services, including advanced content creation, regular engagement with followers, and analytics reporting.
Advanced Packages ($3,000 - $5,000/month): Full-service management with strategic planning, paid ad campaigns, in-depth analytics, and support for multiple platforms.
Small businesses must assess their goals and resources to determine the right level of investment in social media management. Partnering with an agency can help save costs of a full time in house social media employee.
2. Website Design and Development
Average Monthly Spend: $1,000 - $10,000 (often as a one-time or periodic cost rather than monthly)
A well-designed website is crucial for establishing an online presence and converting visitors into customers. Costs can vary greatly based on the complexity of the site and the services provided.
Basic Website ($1,000 - $3,000): Suitable for businesses needing a simple, informational site with a few pages.
Intermediate Website ($3,000 - $7,000): Includes custom designs, e-commerce capabilities, and more interactive features.
Advanced Website ($7,000 - $10,000+): Fully customized, feature-rich sites with advanced functionalities, tailored user experience, and ongoing support.
While website design is often a one-time investment, businesses should budget for periodic updates, maintenance, and potential redesigns to keep the site current and effective.
3. Marketing Consulting
Average Monthly Spend: $1,000 - $10,000
Marketing consultants provide strategic advice and insights to help small businesses optimize their marketing efforts. The cost of hiring a consultant depends on their expertise and the scope of their engagement.
Hourly Consulting Rates ($100 - $300/hour): Ideal for short-term advice or specific project guidance. For ongoing support, this can translate to $1,000 to $3,000 per month based on the hours required.
Retainer-Based Consulting ($2,000 - $5,000/month): Provides regular, ongoing strategic support and implementation assistance.
Consultants can offer invaluable expertise and an external perspective, helping small businesses refine their marketing strategies and achieve their goals more efficiently.
4. Influencer Marketing
Average Monthly Spend: $500 - $10,000+
Influencer marketing leverages the reach and credibility of social media influencers to promote products or services. Costs vary based on the influencer's reach, engagement, and the nature of the campaign.
Micro-Influencers ($500 - $2,000/month): Typically have 1,000 to 100,000 followers and offer high engagement rates at a lower cost. Ideal for niche markets or localized campaigns.
Mid-Tier Influencers ($2,000 - $5,000/month): With 100,000 to 500,000 followers, these influencers have a broader reach and moderate engagement.
Macro-Influencers ($5,000 - $10,000+/month): Influencers with over 500,000 followers who can drive significant brand awareness. Suitable for large-scale campaigns.
Small businesses should consider their target audience, campaign goals, and budget when selecting influencers. Collaborating with influencers who align with the brand can maximize ROI and reach.
Prepare Your Marketing Budget
Small businesses must carefully plan and budget their digital marketing efforts to maximize their impact. Here's a quick summary of average monthly costs:
Social Media Management: $500 - $5,000
Website Design and Development: $1,000 - $10,000 (often as a one-time or periodic cost)
Marketing Consulting: $1,000 - $10,000
Influencer Marketing: $500 - $10,000+
By understanding these cost ranges and evaluating their own needs and goals, small businesses can make informed decisions to invest wisely in their digital marketing strategies. This strategic allocation of resources not only helps in achieving business goals but also ensures sustained growth and competitive advantage in the digital marketplace.
