How Much Does Digital Marketing Cost for Small Businesses?

A few decades ago, marketing and advertising involved placing billboards and paying for radio or television placement ads. These amazing posters, brochures, and jingles were made with money set aside for marketing by a corporation. Some years later, many things have changed, if not all of them. These days, social, search, email, and mobile should be the main priorities for this marketing expenditure, regardless of its size.

The data supports this transition in marketing spending: for almost five years, traditional advertising budgets have steadily declined by single-digit percentages annually. In contrast, annual increases in spending on digital marketing have averaged double digits.

Small Business Strategies for Spending on Digital Marketing

When determining how much a small firm should invest in digital marketing, before coming to any hasty decisions, the designers must ascertain the current and projected income of their business.

A company's sales are often boosted by marketing to the tune of 11% on average. Depending on the industry, it varies substantially. In the initial few months of your company, you can consider significantly increasing those numbers. by putting digital marketing tactics into practice.

Use of Social Media (SMM)

Here, marketers use social media platforms and applications to advertise items or increase brand recognition. India's social media user base is anticipated to grow to 518 million users by 2020. You can see that's a sizable population that you can rapidly reach.

You can construct your social media pages on a variety of social networks, including LinkedIn, Facebook, Instagram, Twitter, Tumblr, Pinterest, and YouTube. Budget between INR 14,000 to INR 36,000 per month for SMM costs if you wish to engage outside support to maintain these pages.


Startups need a strong website in the current digital era to be competitive. This aids in building your internet presence, along with your social media accounts. When should entrepreneurs begin calculating how much a firm should invest in digital marketing? Many strategies exist for reducing marketing costs. For instance, rather than engaging a third party to handle this task, your company's in-house web developer can help you create a website that suits the needs of your firm.

According to, the average cost to build a website, whether you do it yourself or hire a professional, is between Rs. 40,000 and 55,000. The cost to build an e-commerce website ranges from Rs. 50,000 to 70,000. As more people browse the web using mobile devices, be sure your website is responsive.

Creation of Content

You can constantly encourage user involvement on the web by providing useful content. Blogs, websites, social media pages, and other platforms are some examples of content display mediums. They have a significant impact on user retention, thus it is important to curate them carefully to attract a suitable demographic and encourage interaction.

You may be charged anything between Rs. 15,000 and 30,000 by a number of small-scale content creation companies for content planning and development. Like with everything else, they are only estimates that could change depending on your situation and location.

Email Marketing

The price plan for digital marketing should take email newsletter costs into account. Around the world, email marketing is a powerful tool that is used by thousands of organizations. It's a simple, effective, and affordable way to inform potential customers about a new product or useful update. Most importantly, such mailing does not necessitate a sizable financial outlay.

HubSpot and Mailchimp are two examples of email marketing software. Depending on the client's needs, their costs change.

PPC Advertising

A cost is imposed on marketers using the pay-per-click (PPC) internet marketing approach each time one of their adverts is clicked. Only if someone clicks on your ad do you pay for advertising here. Together with driving organic traffic to your site, it aids in "purchasing" internet views. Google Adwords is the PPC ad network that receives the highest usage.

The costs associated with PPC advertising vary depending on the service providers. A typical monthly fee is $250, or 12% of your monthly expenses, whichever is higher.

Why Investing in Digital Marketing is Important for Small Companies?

Investment in digital marketing is essential for small businesses since it offers them a number of advantages that can aid in their expansion and success. For small businesses, investing in digital marketing is crucial for the following reasons −

Enhanced Brand Awareness

Small businesses are able to raise their brand visibility online thanks to digital marketing. Small businesses can reach a larger audience and improve their exposure in search engine results pages by utilizing search engine optimization (SEO), social media, and email marketing (SERPs). An increase in website traffic as a result of this greater visibility may generate more leads and sales.


Traditional marketing strategies like print or television advertising are frequently more expensive than using digital marketing. Small businesses with tight budgets can reach their target audience through digital marketing channels like social media, email marketing, and content marketing without spending a fortune. Companies can also monitor their return on investment and modify their marketing plans accordingly.

Market Segmentation

Targeting particular audiences and demographics is made possible for small businesses via digital marketing. Small businesses can target clients most likely to be interested in their goods or services by utilizing data-driven marketing strategies. Small businesses can increase leads and revenue by using this targeted marketing strategy, which can also increase marketing ROI.

Higher Level of Consumer Involvement

Small businesses have the opportunity to interact with their clients and develop relationships with them through digital marketing channels like email marketing and social media. Small businesses can become regarded as authoritative sources in their fields by offering useful content, responding to consumer questions, and making tailored recommendations.

Competitive Edge

Small businesses may be able to outperform their larger rivals thanks to digital marketing. Small businesses can design focused campaigns that appeal to their target demographic by utilizing data-driven marketing strategies. Small businesses might benefit from this by luring clients away from bigger rivals who might be relying more on conventional marketing techniques.

Measurable Results and Analytics

Digital marketing gives small companies access to real-time information and measurable results, enabling them to evaluate their ROI and make data-driven decisions. Small businesses can monitor statistics like website traffic, email open rates, click-through rates, and conversion rates and modify their marketing plans as necessary.

Increased Trust and Credibility

By delivering insightful information, immediately answering questions, and offering tailored recommendations, digital marketing can assist small businesses in developing credibility and trust with their audience. Small businesses can set themselves apart from their rivals and establish lasting relationships with their clients by becoming recognized as authoritative sources in their fields.


Many elements, including business size, industry, and marketing objectives, influence how much small businesses spend on digital marketing. Yet, data shows that small businesses often spend 7–12% of their revenue on marketing, with a sizable amount of that spending going to digital marketing platforms. The precise sum spent on digital marketing might also depend on the channels and strategies employed; social media and email marketing are two common and reasonably priced choices.

Ultimately, even while the precise amount small businesses spend on digital marketing varies, investing in the strategy is essential for them to raise their brand exposure, engage with customers, and maintain a competitive edge in the current digital environment.

Updated on: 27-Mar-2023


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