How much do companies invest in digital marketing?

BluCactus - invest

How much do companies invest in digital marketing? Much is said today about digital marketing, its importance, functions, services that comprise it, means to use and even the cost of each product has been touched upon. However, a frequent question faced by companies, especially those that are in their infancy, is how much of their budget to allocate to pay for digital marketing expenses.


If your business is starting, you may not have a large amount to spend in this area, however, the first step is not to see this as an expense, but as an investment.


An investment that will boost your business with which you will go from being non-existent to being recognized thanks to the visibility and positioning offered by advertising resources.


Why invest in digital marketing?


BluCactus - investThe world of advertising and marketing has been changing over time.


Although traditional media (advertising in the written press, radio, television, billboards) are still in force, the digital age has brought with it a series of accessories that allow not only to diversify the market, but also to have many more options to implement.


The products that are applied in digital marketing are designed to make you known, to make you visible among a sea of ​​brands in your field, the most coveted objective being to increase sales.


According to the needs of each business, each applied strategy can increase your reach to customers, since thanks to the digitization of marketing we can access an audience regardless of where they are in the world, age, gender.


Digital marketing also allows the possibility of knowing the personal interests, data and values ​​of how all that is applied is responding, and analyze what works and what does not, so you can determine what to improve, what to stop doing and what to implement.


Thus, something that also changed drastically was the way of relating to clients or the public, since in digital media you can interact directly, being able to give concrete answers and personalized attention.


BluCactus - investDigital marketing plans are flexible


Many companies that offer advertising services have the ability to adapt to your needs, therefore, if your business or company is small or in its infancy.


They can offer you services to start with the necessary strength and boost you.


For all of the above, investment in digital marketing has become necessary today, for the simple fact of being up-to-date at the forefront of advertising and achieving the basic objectives of visibility, position and sales.


How to calculate our investment in digital marketing?


At this point we must start by emphasizing that applying digital marketing strategies for your company is an investment, not an expense.


Another point is to remind you that each business is unique, with its own needs and objectives and the design of the digital marketing plan that is right for you will depend on this and consequently the costs will start from here.


If you got this far, it is also important to know that the most common and requested products in digital marketing are:


  • Website creation.
  • Logo design.
  • Content creation.
  • Social media management.
  • SEO Consulting.
  • Virtual assistant.
  • Online advertising.
  • Email marketing.


Each one in particular has its cost, but what is relevant here is to know which one is ideal for your company and from there you will be able to accurately calculate the level of investment.


There are different variables that will determine how much should be invested in advertising, but the usual thing is that it varies from 1% to 30% of the sales revenue that a company has.


But let’s know the aspects to take into account to make our budget more precisely:


Brand or business lifetime


Here we refer to whether it is a new business or brand or already has a track record and validity.


If it’s new, your investment should be higher. Around 20 and 30 percent of your income in the first months or year. All while you achieve visibility and positioning.


Speed ​​in results


In this case we talk about the rush with which you want to see results.


If you want to obtain the best results in a short time, you must invest a lot. For example, your investment should be around 30% to 50%. On the other hand, if there is no hurry, your investment can be lower, between 2% and 5%. However, this takes much longer to see results.


Revenue volume


This data is not surprising. After all, our investment will depend on the volume of sales or income  we have. This may also vary between 7% and 12% according to these.




It is necessary to measure or determine how is the level of competition in the sector of your field.


If it’s high, this means that many businesses or brands are offering the same product or service as yours. As a result, you will need to invest a lot more in advertising.


Now, if your product isn’t as popular among other brands, you won’t need to invest as much.


In these cases, the initial investment is often around 5%. As the marketing plan progresses, the necessary adjustments are made, either to increase or maintain the amount.


What you offer


Here it will depend on whether what you offer is a specific product (clothes, footwear, food, etc.) or a service. When it comes to products, you will have to spend a lot more. After all, the goal is to encourage and be visible. This will allow you to encourage customer acquisition and sales frequently.


In the case of services, you will need to invest a little less. This is because the need for a service is usually periodic. In fact, a percentage between 2% and 5% can be considered admissible and appropriate in these cases.


Advertising quality


The quality of the advertising type you use will also determine the percentage of investment. After all, the more products you add (graphics, images, design, jingles, videos, etc.) the greater or lesser scope you will have. As a result, you will have to spend between 25% and 70% on digital marketing.


The higher the quality that we want to obtain, the higher the amount we should use will be.


You may not get the results you want as soon as you want. However, this doesn’t mean it doesn’t work. In this case you should only evaluate and correct the strategies hoping for an improvement.


To finish remember that by paying money for advertising, you want to achieve the goals set for your business. These, in turn, will translate into a return on investment in the future. Also, subscribe to our weekly newsletter.


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