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How much should I invest in Digital Marketing?

How much to invest in digital marketing


This blog answers your basic questions like how much you should invest in digital marketing or how much you should spend on a social network or any form of digital platform.  Let’s determine how much you should invest in digital marketing – what kind of budget you could look forward to spending over a month and 3 months, based on that we can shoot a select suitable social and digital platform that is suitable for your business.

Is it really tough to find out how much should one spend on digital marketing? A lot of research and reports are available on the Internet that may not exactly point you towards the answer. Maybe they are too broad or not relevant to your industry or maybe not relevant for your kind of target group. In this article, we could see B2B and B2C industry-wise marketing spend and will compare it with the traditional media buying platform. With the help of this, we will get to know how important it is to determine the digital marketing spend as a part of your digital marketing strategy. This gives you a lot of space to explore and invest in the right platform and get fruitful benefits for your brand in the long run.


Your ultimate digital marketing investment guide – powered by


How much should you invest in a digital marketing campaign? However, it depends on whether you are a B2B business or B2C. By the end of this article, you will be able to analyze your current market and accordingly device a digital marketing plan with the spend details.

Let us see the trend of bend-forward Digital TV and other forms of traditional media buying spaces.

In the below table you could see the numbers compared to TV, digital, print, radio and other marketing channel expenses with their percentage according to the year-on-year change. You can clearly see the rise in digital spend almost twice as good as TV. This clearly means that people are making better ROI on digital medium than any other and marketing mediums.




Let us start with B2B digital marketing spend.


If you are a B2B business, your customers are going to be very niche and they are going to be the highly targeted users. Generally, your target will be the CEO’s, Founders and Entrepreneurs who are the top grade of any organization and the key decision makers in buying your product or services. Reaching out to them needs to be highly targeted, messaging with an intent to resolve their daily problems like conversion cost and the cost per acquisition at a very low rate.

I would like to talk about Dropbox B2B growth strategy. Dropbox was acquiring customers at $100 for new registration via Google Adwords and other PPC campaigns and they were exactly making $60 as their revenue per registered user. In the initial years they were able to do that because of the fresh funding, eventually, they had to rework on the strategy to get new sign-ups at a much more lesser cost. So they did come out with a good strategy that is called the referral storage program. They introduced this referral storage program where you will be able to refer your friend and get a 5 GB extra space on your existing Dropbox storage. This lead to a lot of people referring Dropbox to their friends who were not Dropbox users and it automatically generated a lot of registered users for them. This eventually helped them to get new sign-up at a much more less cost.


So what I mean to say is your investment on digital marketing cannot be always an intensive incentive oriented but it could be thought provoking one. That will really bring in a lot of organic sign up.


Here are the few thought provoked Growth hacking tips for B2B business


However, you need to be given a number by the end of the day so that you can start investing in your digital marketing campaign to in order to focus on that we would say that you can spend almost 7% of your revenue cost in acquiring a customer at the initial phase of your business. For example, your business is very new and you want to have customers on your plate and you are ready to shed some of your margins and can spend 7% of your revenue cost to acquire a customer. Do not go any further than that instead of that think an alternative way like how Dropbox did and they made it very successful. So for example if you are a B2B company that is selling a service or product $100, you can spend $7 on acquiring a new customer so that you can publish case studies on them and make credibility for your brand and build your brand to make more revenue in future and by that you can produce one by one.




The next company that I want to speak in B2B business is SEM Rush. SEM Rush offers meaningful insights about SEO and SEM strategies. You can get SEO and SEM information of your own brand and competitors of your brand. Digital marketers use this tool to speed up their job and devise comprehensive strategies giving a lot of valuable insights about SEO and SEM. They wanted to grow at a much faster phase, they invented a free platform where they will give a hands-on experience to their target audience using a free signup and then you can play with the tool for a 14 day trial period. During the trial, you can get a lot of meaningful data from the tool. Once you taste the product, if you like it you might definitely buy it. After some time they will be prompting you to subscribe for a paid subscription. Most of the actual users go for it because it helps them to speed up their work. SEM Rush went from nowhere to an exploding user base. It is really important to give your customers the taste before even the purchase because then they are not hesitant to swipe credit cards in your website.


One more point towards B2B business.


Generally, a B2B business that is selling a service will tend to spend much higher than the B2C business that are selling products. It is because a product and a service are completely different from each other. For example, you want to sell a product, you can just give a trial pack of the smaller size of the actual product. When you sell a service, you cannot do trial packs like a product company unless they sign up to go for it. The services are always highly customized and suitable for specific orders specific order. The service industry has to spend a bit higher than the product industry.

Other factors influencing the digital marketing spend:


When calculating a digital marketing budget for B2B business is it also involves a lot of other complexities in determining the conversion cycle, average revenue per customer and return on retention.


How to determine the marketing budget especially a digital marketing budget for B2C business


B2C business is predominantly focusing on end consumers who are very largely available at any touch point like (social media, google or even on print and radio) and you can target them using customized creative copies and suitable media type. You can also profile them on social media to run targeted advertisements to make sure that you make head turns to your exactly TG that you want to target.


Here is a growth hacking technique for B2C brands;


I would like to talk about a brand which we all know for very long time. It’s Everyone must have used Hotmail which is the inventor of email services before the internet burst they had a lot of strategies in devising how to increase the number of sign up for it. Then they came out a strategy to have “Sent from Hotmail” as a signature at the bottom.  Hotmail exploded users like anything and they sold it to Microsoft and still it continues to be a strategy of Microsoft email so this technique was adapted and initially thought through by Hotmail and been adopted widely across a lot of things now for example even iPhone will be having a default signature ad “sent from my iPhone” and if you take any website chat platform they’ll have a button at bottom signature saying that “powered by drift” or something and one more example is  “powered by WordPress” in all the WordPress site. This kind of signature in and having the brand name there and help the Hotmail to scale up from B2C.

Finally, when we come to numbers, B2C brands can spend around 9% of the total revenue which means, if you are expecting $100 revenue from a sale you can spend $9 in acquiring that customer. Once you get a quantifiable repeat customer base you can experience the cost per acquisition going down up to 5% since there will be word of mouth automatically happening from your repeat customers.




You have to spend almost 7% of your entire revenue to get new customers for a B2B industry and spend around 9% of your revenue to digital marketing to get maximum ROI. This number will vary based on industries like hotel industry, hospitality industry, health care and education.

Businesses without a digital marketing strategy will soon become extinct.


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