On average, small business owners spend 20 hours a week on marketing. That’s half of a full-time job dedicated to getting your business noticed. But are those hours being spent wisely? As you juggle these tasks with running your business, you might have already considered outsourcing your digital advertising. But you ask yourself, ‘How much does it cost?’
Average marketing costs depend on various factors, including your goals, whether your clients are local or national, and your overall business strategy.
In this guide, we’ll explore not just how much your budget should be, but how to make those costs work harder for your business. From planning to real-world marketing budget examples, you’ll discover how successful businesses are maximizing their investments, regardless of their budget size.
Budget Mistakes To Avoid as a Small Business Owner
Many business owners focus solely on the price tag without considering how it fits into their long-term strategy. This mindset often leads to three critical mistakes that can make marketing expensive.
- Operating Without a Marketing Budget. A successful strategy starts with a clear budget. When you present your budget to a team, they can help you understand how to achieve your goals within those constraints. At Trailzi, we believe two primary factors determine your success: time and money. With a low cost marketing approach, you’ll need to invest more time. With a higher budget, you can potentially accelerate results.
- Misunderstanding Timelines. Patience is crucial in this field. We’ve seen business owners cut their initiatives right when they were about to start showing results. Each activity has its own timeline for generating returns. Understanding these timelines is essential. It’s a conversation you should have with your consultant to set realistic expectations from the start.
- Missing Early Success Indicators. Success isn’t always measured in immediate sales. Before you see lead forms being filled out, you’ll notice other positive changes:
- Increased website traffic
- Improved cost-per-click metrics
- Growing social media engagement
- Better search engine rankings
These leading indicators show that your strategy is moving in the right direction. Working with your consultant to understand these metrics helps you recognize progress even before the final results arrive.
What is The Average Marketing Costs for Small Businesses
When examining average marketing costs, two main factors influence your budget: your business stage and the strategies you’re implementing. Let’s break this down into manageable pieces with marketing budget examples.
The Three Stages of Digital Marketing
- Startup Stage. This is where you’re investing in the ‘fundamentals’:
- Building your website
- Creating your logo
- Establishing your brand identity.
While these investments might not show immediate returns, they create a professional foundation that will support your long-term growth.
- Organic Growth Stage. Here, you’re focusing on building volume across your chosen platforms:
- Developing SEO strategies to increase website traffic
- Growing social media following and engagement
- Optimizing Google Business Profile for local visibility.
This stage is about increasing digital awareness of your business and establishing a solid online presence.
- Conversion Stage. At this point, you’re implementing more sophisticated strategies:
- Running targeted ad campaigns
- Creating funnels
- Launching LinkedIn initiatives
You’re focusing on customer acquisition costs and return on investment. Which makes your funnels more effective at generating business.
To better understand your long-term financial commitment, it’s also important to consider what typical advertising and marketing assets might cost annually.
How Much Should You Budget for Digital Advertising Each Year?
Digital advertising can feel like a big leap, but it doesn’t have to break your budget. Whether you’re boosting a post on social media or running targeted Google Ads, the amount you invest should reflect your goals, your industry, and your comfort level.
For many, it’s part of a broader approach to balancing your small business marketing strategy and budget. As a starting point, many small businesses allocate at least $2,500 annually toward digital ads. This gives you room to test strategies and see what works.
Here’s a breakdown of typical spend areas:
- Social Media Campaigns: Platforms like Facebook and Instagram let you start small—some as low as $100 per campaign. Perfect if you’re just beginning to explore paid outreach.
- Google Ads: These can cost more, but they also help you reach people actively searching for your services. Even a modest monthly budget can drive traffic when your targeting is dialed in.
- Sponsored Posts & Local Ads: Think LinkedIn promotions or neighborhood platforms like Nextdoor. Costs vary, but they’re often in the $200–$500/month range.
- Other Channels: Digital campaigns are easier to scale or pause than traditional marketing. That flexibility means your budget can shift based on seasonality or performance.
Start small, monitor your results, and adjust with help from a marketing consultant. That way, you’re investing in growth, without overspending or guessing.
How Strategies Affect Costs
Different strategies not only have different costs but also varying timelines for showing results. Let’s look at an example:
SEO as a Strategy Search Engine Optimization involves multiple activities such as:
- Page optimizations
- Blog content creation
- Building backlinks
The primary goal of SEO is to increase website traffic. However, many small businesses misunderstand this strategy’s expected outcome. While we hope to see form submissions and phone calls, SEO’s main purpose is getting people to your website. Once they’re there, you need additional strategies to convert that traffic into leads.
And while campaigns may be the largest single investment, many business owners overlook the smaller recurring expenses that keep everything running smoothly.
What Monthly Marketing Costs Should You Expect?
Beyond your campaigns, it’s important to budget for the recurring tools and services that keep your marketing running behind the scenes. These may not seem flashy, but they’re essential.
Here are some common monthly marketing costs to plan for:
- Website Hosting & Maintenance
- Domain Renewal
- Email Marketing Platforms
- Analytics or SEO Tools
- Creative Tools (e.g., Canva Pro or stock photo libraries)
While these costs are often smaller, they add up—and they’re part of keeping your brand professional, visible, and ready to grow.
Understanding the Customer Journey
Another strategic investment might be in tools like TruConversion or Hotjar to analyze how customers interact with your content. These tools help you:
- Track page consumption rates
- Monitor common click patterns
- Understand user behavior
This data helps you create an experience that guides visitors toward taking action, whether that’s making a phone call or filling out a form. Of course, the foundation of all your digital activity is your website, and building it right from the start matters.
How Much Does a Small Business Website Cost?
Think of your website as your digital storefront. It is often the first place potential customers go to learn about your business. It’s one of the most important marketing investments you’ll make.
For most small businesses, building a professional website typically starts around $15,000. This usually includes:
- Custom design
- Foundational SEO
- Engaging copy
- Core pages like Home, Services, About, and Contact
Costs may increase with:
- More pages
- Custom graphics or photography
- Advanced features (e-commerce, booking, member portals)
- Ongoing maintenance
When done well, your website becomes your hardest-working employee—available 24/7 to help customers find and trust your business.
Is Low Cost Marketing for Small Businesses Really Possible?
The simple answer is yes—low cost marketing for small businesses is absolutely achievable. The key lies in understanding how to leverage your two most valuable assets: time and money.
When pursuing low cost marketing, many business owners fall into the trap of trying to do too much at once. Instead, success in low cost marketing comes from focusing on a few key initiatives and executing them exceptionally well. Here’s how to make it work:
- Make Strategic Contributions. If financial resources are limited, consider how you can contribute in other ways:
- Extend your timeline expectations
- Leverage internal team members’ time
- Focus on high-impact activities
- Stay Focused. In low cost marketing, you need to concentrate your efforts on strategies that align with your goals rather than spreading your resources too thin. This focused approach helps ensure your budget, however modest, delivers meaningful results.
And if you’re expanding into more traditional formats, you’ll want to factor in those production costs as well.
How Much Does Direct Mail Cost for Printing and Postage?
If you’re considering direct mail, you’re not alone—it’s still a powerful way to connect with your community. But how much should you budget?
On average, printing and postage cost $1.50 to $2.00 per piece.
What affects that cost?
- How many pieces you send
- The size of your piece
- Paper quality and finish
Example: mailing 1,000 pieces could run $1,500–$2,000. Knowing these numbers helps you plan without surprises.
What Does It Cost to Produce a Marketing Video?
Video can be one of the most engaging tools in your marketing toolkit—and one of the most versatile. But how much should you set aside? As with any marketing budget for small businesses, the right amount depends on your goals and how you plan to use the content.
For a standard 3–5 minute marketing video, expect to budget between $6,000 and $8,000.
Typical costs include:
- Multi-location shoots
- Graphics or animation
- Talent and equipment
- Revisions and editing
Done right, a marketing video can be repurposed across email, social, landing pages, and events, making it a powerful investment.
What Should You Budget for Print Design?
If print materials like brochures, annual reports, or branded booklets are part of your marketing plan, it’s worth investing in thoughtful design.
Professionally created, multi-page print pieces typically start around $1,900. That covers creative development, visual storytelling, and alignment with your brand.
Marketing Budget Examples That Work
Let’s look at how different average marketing costs have delivered results for real businesses. These marketing budget examples show how various average marketing costs for small businesses can lead to success when properly managed.
Customer I: Strategic SEO on a Minimal Budget
Budget: $250 per month
Scenario: Had an internal team but needed specialized SEO expertise
Strategy:
- Focused on organic keyword growth
- Created targeted page and blog plans
- Identified underserved customer questions
Success Secret: Targeted questions competitors weren’t answering effectively
Customer C: Local Practice Growth
Budget: $1,000 per month
Scenario: Well-established local practice needing to attract more patients
Strategy:
- Leveraged social media services
- Created HIPAA-compliant community stories
- Tracked results through dedicated phone numbers and forms
Success Secret: Powerful storytelling that encouraged natural sharing
Customer F: Targeted Local Campaign
Budget: $1,500 per month
Strategy:
- Focused on Google Business Profile optimization
- Targeted specific local keywords
- Tracked daily sales call increases
Success Secret: Precise keyword selection for their industry
Customer N: Auto Dealership
Budget: $10,000 per month
Strategy:
- Website redesign
- SEO improvements
- Social media management
- Email drip campaigns Success Secret: Comprehensive approach leading to online sales growth
Understanding How Much Marketing Costs
When considering how much it costs for your business, remember:
- Your stage of business growth affects your needs
- Different strategies require different levels of investment
- Results timeline varies by approach
- Success is possible at various budget levels (including low cost marketing strategies)
Understanding average marketing costs isn’t just about how much you spend—it’s about making smart choices with your resources. Whether you’re working with a modest budget or investing in a comprehensive strategy, the focus should always be on creating a plan that aligns with your business goals and resources.
Want to Learn More About Marketing Costs?
Understanding how much it should cost and creating an effective strategy shouldn’t feel overwhelming. At Trailzi, we help businesses like yours develop plans that make sense for your budget and goals. Whether you’re just starting with low cost marketing or ready to scale up your efforts, we’re here to help you make informed decisions about your investment. Schedule a consultation to discuss these marketing budget examples with our experts now.
Low Cost Marketing For Small Business FAQs
How do I set clear goals for my budget?
To set clear goals and understand average marketing costs, you’ll want to identify what you aim to achieve, such as increasing brand awareness, generating leads, or boosting sales. Align your goals with your overall business objectives and use metrics like ROI to measure success.
What is the average marketing budget for small businesses?
The average marketing cost for a small business typically ranges from 7% to 10% of revenue. However, this can vary based on industry, business goals, and channels utilized—study marketing budget examples in your sector.
What are some effective channels for small businesses?
Low cost marketing channels for small businesses include content, email, social media, and digital advertising. Each channel has its own cost per lead and potential ROI, so consider your target audience when selecting channels.
How can I track who’s coming to my website as part of my analytics?
You can track who’s coming to your website by utilizing analytics tools such as Google Analytics. These tools provide insights into visitor behavior, allowing you to measure the effectiveness of your strategies and allocate your budget accordingly.