# How to Set a Digital Marketing Budget for a Small Business

Source: https://dijitulmarketing.co.uk/guides/digital-marketing-budget-for-small-business/
Updated: 2026-10-18

> Set a small business digital marketing budget from what a customer is worth and how many you need, not a percentage you read online. Split it between ad spend, tools and help, test on one or two channels, then scale what works. dijitul builds marketing budgets and plans at £45 an hour + VAT, or a fixed quote.

## Key facts

- Start from customer value, target cost per acquisition and how many new customers you need
- Separate working spend (ads) from non-working spend (management, tools, content) so you know where money goes
- Ad spend is paid directly to Google, Meta, LinkedIn or TikTok and is separate from any agency fee
- Test one or two channels properly rather than spreading a small budget across many
- Review monthly and reallocate to the channels with the lowest cost per customer
- dijitul strategy and budget planning is £45 an hour + VAT, or a fixed quote

## Two ways to set a budget

You will see two approaches:

- **Percentage of revenue.** You set aside a share of turnover. Simple, but it says nothing about whether the money will work. A new business with little revenue may need to spend more to grow; an established one may be overspending.
- **Objective and task.** You decide what you need to achieve, work out what it will cost, and fund it. This is the approach we recommend for small businesses because it ties every pound to a goal.

Use the percentage as a sense check if you like, but build the budget from your own numbers.

## Work it out from your numbers

- **How many new customers do you need** this year, and per month?
- **What is a customer worth?** Gross profit from the first order, and over their lifetime if they come back.
- **What can you afford to pay to win one?** That is your target cost per acquisition (CPA). Leave room for profit.
- **Multiply.** New customers needed × target CPA = the most your marketing should cost to deliver that growth.

Then test whether channels can deliver at that cost. Our guide to how much to spend on Google Ads shows how to turn click prices and conversion rates into a monthly ad budget.

## What the budget has to cover

| Line | Examples | Who you pay |

| Ad spend | Google Ads, Meta, LinkedIn, TikTok | The platform, directly |
| Management | Running ads, social, email | Agency, freelancer or staff |
| Tools | Email platform, scheduling, CMP, CRM | The software provider |
| Content | Photography, video, copywriting | Studio, freelancer or staff |
| Measurement | GA4, tracking, dashboards | Usually one-off set-up |

Ad spend is the "working" part that buys attention. The rest is "non-working" but necessary. If non-working costs dwarf ad spend, you may be paying for activity that never reaches customers.

## How to split it by stage

- **Capture existing demand first.** If people search for what you sell, Google Search ads and local listings are usually the quickest return.
- **Keep the customers you win.** Email marketing and automated flows are cheap and bring back past buyers.
- **Then create demand.** Paid social reaches people who are not searching yet. It takes more testing.
- **Fix the website.** Improving conversion rate makes every other channel cheaper. If the site itself is the problem, our sister company dijitul web design builds sites and landing pages.
- **Keep a test budget**, a small share each month for trying something new.

## Review and reallocate

Set a monthly review. For each channel, look at spend, leads or sales, cost per customer and, where possible, profit. Move money from what is not working to what is. Seasonal businesses should plan peaks in advance, as click prices often rise when competitors push harder.

Give new channels a fair test before cutting them, with clear rules agreed in advance: for example, three months at a set spend, judged on cost per customer. Without rules, budgets drift towards whatever someone feels is working, which is rarely the same as what actually is.

Put the numbers in one place. A Looker Studio dashboard (£145 + VAT one-off) can pull Google Ads, GA4 and other sources into one monthly view.

## dijitul prices to plug into your budget

Ad spend is extra and paid directly to the platform. Our main prices:

| Service | dijitul price |

| Google Ads management | from £150 a month + VAT, or 10 to 15% of ad spend, whichever is higher |
| Paid social (Meta, LinkedIn, TikTok) | from £150 a month + VAT |
| Social media management, per platform package | from £125 a month + VAT |
| Email marketing | from £95 a month + VAT |
| SMS marketing | from £75 a month + VAT |
| Marketing automation set-up | from £195 + VAT, one-off |
| Conversion tracking | £145 + VAT, one-off |
| Conversion rate optimisation | from £195 a month + VAT |
| Content marketing | from £195 a month + VAT |

Strategy and budget planning is £45 an hour + VAT, or a fixed quote. Full details are on our pricing page.

## FAQs

### What percentage of revenue should a small business spend on marketing?

There is no single right percentage. It depends on your growth goals, margins and how established you are. We recommend building the budget from customer value and target cost per acquisition, then using a percentage of revenue only as a sense check.

### What is the minimum budget for digital marketing?

Enough to test one channel properly. That means enough ad spend to gather meaningful clicks and conversions, plus tracking to measure them. Email marketing to existing customers can start with very little spend. Spreading a tiny budget across many channels rarely teaches you anything.

### Should I spend on Google Ads or social media first?

If people already search for what you sell, Google Search ads usually deliver first because you catch existing demand. If you sell something people do not yet know they need, or something visual, paid social may suit better. Test with tracking in place.

### How often should I review my marketing budget?

Monthly for performance, quarterly for bigger shifts. Each month check spend against leads, sales and cost per customer by channel. Each quarter decide whether to move money between channels, add a new test or plan for seasonal peaks.

### Can dijitul help plan a marketing budget?

Yes. Strategy and budget planning is £45 an hour + VAT, or a fixed quote. We look at your numbers, recommend channels and a starting budget for each, set up tracking, and agree how results will be judged. You can then run it yourself or with us.

## Prices and contact

Prices (all from, + VAT; ad spend separate): Google Ads management £150 a month; Paid social (Meta, LinkedIn, TikTok) £150 a month; Social media management £125 a month; Email marketing £95 a month; Marketing automation set-up £195; SMS marketing £75 a month; GA4 set-up £95; Conversion tracking £145; Data Studio (Looker Studio) dashboard £145; Conversion rate optimisation £195 a month; Content marketing £195 a month; Consultancy, audits and strategy £45 an hour. All prices are "from" and exclude VAT. Ad spend is separate and paid directly to Google, Microsoft, Meta, LinkedIn or TikTok. Paid media management is from £150 a month or 10 to 15% of ad spend, whichever is higher. You own every ad account, pixel, audience and email list we set up. Contact: https://dijitulmarketing.co.uk/contact/ · 01623 650333 · info@dijitul.uk