What Is The Average Marketing Budget For A Small Business

After completing a survey from YouGov Omnibus which researched the average Australian budget for digital marketing, I started to think about how much the average small business owner spends.

The survey revealed the average Australian marketing budget was $30,000 for digital marketing campaigns.

This is a lot of money for someone starting, but luckily I am not starting a small business.

To get some answers about what other small business owners spend, I turned to Google search.

How much does a small business owner spend on advertising?

green plant in clear glass vase

According to Google AdWords:

1 in 6 Australians spend between $30,000 and $60,000 on digital marketing.

To put this in perspective, that is almost three times the average annual income in Australia.

Websites with keyword ads such as mine for running a website focused on gluten-free products, typically cost between $10,000 and $20,000 per month for a minimum advertising campaign.

Other online business opportunities like online courses typically cost over $20,000 per month to run for a minimum of two months.

So, to get people to sign up to your site, you are looking at spending over $200,000 over a two-year period.

The ultimate question is, is this really an expensive way to market your business?

In the article online advertising is not cheap, I also mentioned a common misconception that every business needs to advertise online.

While this may be true for some of your businesses, for others you may be able to achieve similar results by using conventional offline marketing and advertising such as putting a business card in every shop in your local area.

My point is, there are many different ways to advertise your business but remember that when it comes to online marketing, it has to be consistent, which means that you have to stay on top of it.

Today you get an email every time someone signs up for a free course on my website or even better, a tweet.

So, stay on top of it and understand what makes a good ad. It is something you will need to spend a lot of time doing if you are going to be a competitive business online.


Stock photo of the Business Man with a credit card by rupixen

With over 300,000 active users per month on my website, I can see what works. Some of the highest amounts of sign-ups are on days when I put up a new video course.

Another thing that I have noticed is that the best days for signing up are the very first days I put up a new course.

So, when planning your ad campaign and calculating your ROI, keep this in mind.

With an average order value of $270 for my product which is a combination of virtual goods and audio coaching, based on conversion rates, I see my entire cost for each marketing campaign at $18.18.

That means I could potentially save $116.88 if I plan my ad campaign better.

Now that is a lot of money you can save!

Real-world research

The infographic below has a lot of information in it and this is exactly what I had to do when I was looking at different websites and online marketing options.

The important thing to note is that you have to conduct research, not just research online, but you have to do some in-person research.

This is what you should do:

Get yourself a physical flyer or brochure with your name on it to hand to strangers.

This can be any number of flyers from local businesses or a brochure from a hotel or restaurant where you would like to book a night out.

You can also get a physical advertisement in the newspaper.

You will have to spend a few dollars on this but you want to make sure it is going to reach the right people.

Ask the people you meet at the bar, whether they use your products or not.

Don't be pushy, but show a genuine interest in what they are saying and make them feel that you have time for them.

So, you will want to spend a few dollars to get this printed out and distribute it to as many people as possible.

Don't ask for money for it, just simply hand it out.

Follow up

man in grey crew-neck t-shirt smiling to woman on counter

After you hand these out, you have to follow up and see what they have to say about you and your business.

Most of the time people will respond by giving you some good feedback. A lot of times they will ask you for feedback as well.

You will want to follow up this next time with a phone call or a message on their social media page or by emailing them a summary of the feedback you received.

You will want to ask them if they have the time to answer a few questions about what they liked and what they didn't like about your service.

If they are good at their job, they should have no problem answering your questions.

This will make you a better entrepreneur and will show people that you are taking a genuine interest in their business.

It's a good thing when you have a genuine interest in other people's businesses. It makes you look good.

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