Why your marketing budget matters
Customers expect to find you online, whether through search, social media, or adverts. A clear budget helps you plan, measure, and avoid waste. Without one, many businesses spend in bursts when things are quiet, then stop as soon as they get busy. That pattern rarely builds lasting results. Consistent investment, even at a modest level, supports steady growth.
What do small businesses in the UK usually spend?
There is no single figure that fits every business, but benchmarks help. Many UK small businesses set aside 5% to 10% of annual revenue for marketing. Companies in crowded markets often sit near the top of that range. Start-ups may need to spend more in year one to build visibility.
Example: If your turnover is £200,000, a budget of £10,000 to £20,000 for all marketing activity is a common starting point.
How much of that should go to digital?
Digital now takes the largest share of most marketing budgets. A typical split is:
- 50% to 70% digital (SEO, paid ads, social media, website improvements)
- 30% to 50% offline (print, local sponsorships, events, networking)
If your customers mainly find you through Google or social channels, it is sensible to put the majority online.
Typical digital marketing costs
Website and SEO
Your website is your shop window. Costs cover hosting, content updates, technical fixes, and optimisation for search engines. A small business might spend £200 to £1,000 per month depending on goals and competitiveness.
PPC and paid social
Google Ads and social campaigns can deliver quick results but require ongoing spend and careful management. Local businesses often start at £300 to £500 per month in ad spend, rising as results prove out. Factor in management time or fees.
Social media management
Posting and community management can be handled in-house or outsourced. Expect £250 to £800 per month for professional management, depending on platforms, volume, and content type.
Content creation
Articles, videos, and graphics support SEO and brand trust. Budget £100 to £500 per piece depending on length, format, and expertise required.
Email marketing
Still one of the most cost-effective channels. Allow for a platform fee and occasional copy or design support. £30 to £200 per month is common for tools and light help.
Choose a budget that fits your goals
- Start with revenue. Use a percentage to set the envelope, then adjust for ambition.
- Define outcomes. Leads, online sales, bookings, or footfall. Be specific.
- Check your sector. Trades, health, and legal often need higher bids and more content to compete.
- Phase your spend. Do not commit the full year on day one. Test, learn, and reallocate quarterly.
Make every pound work harder
Good management beats raw spend. Track performance with analytics, tag form fills and calls, and review results each month. Test one change at a time: headlines, images, audiences, or keywords. Keep what works, cut what does not. Blend professional support with in-house effort to keep costs balanced.
Example monthly budgets
The figures below are examples. Adjust to your goals and sector.
| Line item | Lean (£500) | Balanced (£1,500) | Growth (£3,000) |
|---|---|---|---|
| SEO and site updates | £150 | £400 | £800 |
| PPC ad spend | £200 | £700 | £1,500 |
| Social management | £50 | £200 | £300 |
| Content creation | £50 | £150 | £250 |
| Email and tools | £50 | £50 | £150 |
| Total | £500 | £1,500 | £3,000 |
Summary and next step
A sensible budget for a UK small business is often 5% to 10% of revenue, with most of it now online. The right number depends on goals, sector, and growth stage. What matters most is steady investment and regular review.
Next step: Review last year’s revenue, ring-fence a monthly figure, and plan a three-month pilot across SEO, a small PPC campaign, and one new content piece per month. Measure, then adjust.
