If you’re like most small business owners, you’ve probably asked yourself one of these questions:

“How much should I be spending on marketing?”
“What if I invest and don’t get results?”
“Can I actually afford to outsource?”

You don’t want to throw money at random ads, but you also don’t want to keep missing opportunities because you’re under-investing. That’s exactly why we made a small business marketing budget guide to help you find your sweet spot.

Be sure to read from top to bottom so you don’t miss out on our tips!

The Sweet Spot of Your Marketing Budget

How do small businesses make marketing budgets that make sense? The secret is choosing a budget that’s big enough to make an impact, but small enough to feel sustainable.

Your marketing budget determines the amount of money you’re going to spend building a professional brand identity and promoting your products and services. Most businesses thrive when they invest 5–15% of their gross revenue in marketing.

That range gives you room to build visibility and attract steady leads at a pace that doesn’t send you into a budgetary panic / crash out.

10 - 15% if just starting or rebuilding.
7 - 10% to stay competitive or grow ROI significantly.
5 - 7% if well established and just focusing on optimization and brand awareness.

*I will caveat this rule with a message to brand new business owners. Do as much of your own marketing as you want for as long as you want to, and don’t let anyone pressure you into investing in professional marketing before you’re ready. However, know that unless you are a marketing professional, you are likely going to see limited results. Sometimes you just don’t know what you don’t know! Find help with your marketing from a trusted professional as soon as you feel financially ready to save time and get better ROI on your marketing.

What to Include in Your Marketing Budget

Let’s break a typical marketing budget down by function so you can see where your dollars should be going.

10–20% - Branding & Design (Logo, photography, messaging, collateral)
25–35% - Website & SEO (Copywriting, development, optimization)
25–40% - Content & Social Media (Strategy, content creation, posting, ads)
5–10% - Email & CRM (List management, automations, newsletter)
5–10% - Analytics & Tools (Subscriptions, reporting, tracking)

Example Small Business Marketing Budget - The Bakery

Say Maggie and Ashley have a trendy local bakery that has been open for two years and makes $300,000 in revenue in its second year (impressive!) The marketing budget sweet spot would technically fall between $30,000 and $45,000 annually (or roughly $2,500 - $3,750 per month).

They want to grow quickly in year three, so they opt for a budget of $40,500 for year three to allow for more aggressive tactics. Now, they have to figure out how to spend it. Maggie and Ashley want to be smart with their spending, so they might ask some of these strategic questions:

#1 - Are your brand assets still doing their job?

The bakery’s DIY logo and photos worked fine when they started, but now that they’re getting media attention and expanding their menu, it’s time for a professional refresh. A designer updates the logo, and a photographer captures new brand images for use across social, PR, Google, and delivery platforms.

New visual identity: $2,000 (one time)
Brand photoshoot: $1,000 (one time)

#2 - Has your website evolved with your business?

The bakery’s old website was just a placeholder. No SEO, no traffic, and no way to take custom orders. Since they’re investing in branding and want to rank for “best cupcakes near me,” they upgrade to a modern, SEO-optimized Squarespace site that converts visitors into customers.

New Squarespace website: $8,000 (4 monthly payments of $2,000)

#3 - Are you reaching the right audience — and converting them?

The bakery tried DIY ads and occasional social posts, but they weren’t bringing in new customers. They decide to get strategic with an SEO + SEM plan and hire a content creator to help grow their Instagram audience with stronger visuals and consistent messaging.

SEO Services: $1,500 / month
Ad Campaign: $1,500 / month
Social Content Creation: $1,500 / quarter

#4 - Are you staying connected with your customers?

Maggie sends a monthly newsletter, but it rarely drives sales. To turn engagement into orders, the bakery brings in a copywriter to refresh the email strategy and craft more compelling campaigns.

Email Setup: $1,500 (one time)
Email Copywriter: $500 / month

Monthly Budget Breakdown for The Bakery

MONTH 1

New visual identity: $2,000 (one time)
Brand photoshoot: $1,000 (one time)
TOTAL: $3,000

MONTH 2

New Squarespace website: $2,000 (Payment 1 of 4)
SEO Services: $1,500 / month
TOTAL: $3,500

MONTH 3

New Squarespace website: $2,000 (Payment 2 of 4)
SEO Services: $1,500 / month
TOTAL: $3,500

MONTH 4

New Squarespace website: $2,000 (Payment 3 of 4)
SEO Services: $1,500 / month
TOTAL: $3,500

MONTH 5

New Squarespace website: $2,000 (Payment 4 of 4)
SEO Services: $1,500 / month
TOTAL: $3,500

MONTH 6

SEO Services: $1,500 / month
Email Setup: $1,500 (one time)
TOTAL: $3,000

MONTH 7

SEO Services: $1,500 / month
Email Copywriter: $500 / month
Social Content Creation: $1,500 / quarter
TOTAL: $3,500

MONTH 8

SEO Services: $1,500 / month
Email Copywriter: $500 / month
Ad Campaign Setup: $1,000 one time
TOTAL: $3,000

MONTH 9

SEO Services: $1,500 / month
Email Copywriter: $500 / month
Ad Campaign: $1,500 / month
TOTAL: $3,500

MONTH 10

SEO Services: $1,500 / month
Email Copywriter: $500 / month
Ad Campaign: $1,500 / month
TOTAL: $3,500

MONTH 11

SEO Services: Pause for one month
Email Copywriter: $500 / month
Ad Campaign: $1,500 / month
Social Content Creation: $1,500 / quarter
TOTAL: $3,500

MONTH 12

SEO Services: $1,500 / month
Email Copywriter: $500 / month
Ad Campaign: $1,500 / month
TOTAL: $3,500

TOTAL FOR THE YEAR: $40,500

Common Budget Mistakes (and How to Avoid Them)

Even the most well-intentioned business owners slip up when it comes to marketing budgets. If you’ve made any of these before, no judgement. The key is learning to spot them early and course-correct before they eat your ROI.

Mistake #1: Spending everything on a website and nothing on SEO or content.

Your website might be gorgeous, but if no one can find it, it’s basically a digital billboard in the desert. A smart budget doesn’t stop at the build, it includes SEO and ongoing content that keep your brand visible and relevant.

Avoid it: Plan for marketing after launch. Reserve at least 25 - 40% of your marketing spend for SEO, blogs, and consistent updates that drive traffic long-term.

Mistake #2: Chasing trends instead of goals.

It’s tempting to throw money at the latest marketing fad (a new AI tool, a platform everyone’s suddenly on…ahem, GHL). But if it doesn’t align with your strategy or audience, it’s not going to move the needle.

Avoid it: Start every campaign with a clear, measurable goal. Ask, “How does this help me get closer to consistent leads or brand growth?” If it doesn’t, it’s not worth the spend.

Mistake #3: Hiring five freelancers instead of one strategic partner.

Many small businesses try to save money by patching together a team of freelancers (one for copy, one for design, one for SEO, and so on). The result is inconsistent messaging and disjointed branding.

Avoid it: Partner with a full-service agency or strategist who connects the dots between brand, content, SEO, and analytics. You’ll spend smarter, not more.

Mistake #4: Expecting overnight results.

Marketing isn’t a vending machine. You can’t put in $500 and instantly get 20 new leads. Results compound over time, especially with SEO and content marketing.

Avoid it: Think quarterly, not daily. Track performance month-to-month and celebrate the slow build.

Budget Smarter with the Emerald Method

At Emerald Creative Content, we believe great marketing isn’t about spending more — it’s about spending intentionally.

We’re a boutique, woman-owned digital marketing agency that helps small businesses grow through SEO-first strategy, bold creativity, and data-driven clarity. Our clients come to us when they’re ready to stop guessing, start tracking, and finally see a return on their marketing investment.

Most marketing firms sell services. We build systems. When you work with Emerald, you get a strategic partner who knows how all those pieces work together to drive consistent leads and long-term growth.

Our approach is simple:

We audit. We start with the data to uncover what’s working and where your biggest opportunities lie.
We optimize. We create a marketing plan that connects your brand story to your search visibility so your audience can actually find you.
We repeat. We help you scale smart, using clear metrics and consistent content that keeps your business visible month after month.

So if you’re tired of feeling like marketing is a black hole, let’s fix that. You bring the vision, we’ll bring the wins. Let’s chat about how to make those numbers work for you.