How much should you spend on digital advertising?

The question of the budget for fundamental for every company and every business. It is so difficult to set a proper budget that most advertisers spend too much or too little on marketing.

The ideal budget depends on so many factors that it is impossible to give a general rule.

So how much money should a marketer spend normally on digital advertising?

The budget depends on the annual revenue (and the percentage of online revenue), on the business type (B2C spend more on marketing than B2B) and on the different conversion rates and the CLV (“Customer Lifetime Value”). The budget also relies on the size of the company.

Smaller business tends to spend more than 10% of their total revenue on digital marketing.

On the other hand, bigger business or more mature marketers tend to spend less on marketing because of a better use of their budget.

Usually, the small and medium-sized businesses spend between 8 and 10% of their total revenue. An average 50% of this budget is, then, allowed to digital advertising.

If you are still hesitating, you can find some help on the Internet. Bigbom is here to help you optimise your budget. With a performing automatic algorithm, Bigbom prevents your business to spend unnecessary money on bad-performing ads.

If you want to learn more about our solution and enhance the performance of your ads, meet us on www.bigbom.com or on our Facebook Page.

SOURCES:

• Adam Smartchan : “How much should you spend on Digital Ads” – Altitude Marketing (2019)
• Roy H. Williams : “ Calculating your Ad Budget” – Entrepreneur Asia pacific (2019)
• Chris Leone : “ How Much Should You Budget For Marketing in 2019” – Webstrategies (June 2, 2019)
• Preston Kendig : “How to Set a Realistic Social media Advertising Budget” – Webstrategies (July 18, 2019)
• David Gwaltney : “How to create a realistic budget for digital advertising” – JB Media Group (February 23, 2018)