What is an Average Marketing Budget for a Small Business with Breakdown
A few decades ago, small business marketing included a sign on a store and advertising in a local newspaper. Now it is a website, content marketing, SEO, SMM, PPC, email, AR / VR and much more, as well as a sign on the store and advertising in the local newspaper. Of course, with the expansion of channels, marketing costs have grown. From the article you will learn how much they have grown: how much now a small business spends on average on marketing, disaggregated by the main channels of communication with customers.
According to the Clutch and The Manifest polls, the majority of small businesses in the USA spend on average from 10 to 50 thousand dollars a year on advertising and marketing, and they all say that next year they plan to spend even more on promotion.
And this is a general trend for all generations, that is, absolutely everyone sees in digital marketing the best tool to increase sales and increase brand awareness, and therefore are willing to spend more on it.
These numbers can be either higher or lower depending on the developers from which country you hire. So, the average rate of web developers in the USA, Canada and Western Europe is at the level of 80-100 dollars per hour, Eastern Europe and Asia - 40-80 dollars per hour, Africa - 20-40 dollars per hour.
Since most mobile users prefer to use web services through applications, you will most likely need to create one. If the application is relatively simple, then it is 3-10 thousand dollars and 2-3 months of development, if complex - 20-100 thousand dollars and 6-24 months. If your service already has a website with a backend, then the cost will be slightly lower.
A mobile application is not necessary if you can connect to a mobile service that your target audience is already using. For example, restaurants can use food delivery apps like GrubHub, Eat24, UberEATS, Foodpanda, and others. You can rent your property on Booking, Airbnb or OLX. You can sell products on OLX, Amazon, eBets or Etsy.
When connecting to someone else’s application, you need to take into account the cost of hiring a person to work with these services, as well as the cost of the subscription or commission that the service takes as payment for its services.
Approximately from 600 to 5000 dollars a month. This price includes keyword research to create an SEO core, content optimization, link building, etc. - Everything that increases the ranking of your site in the search results of Google and other search engines. This is useful because the higher your search engine ranking, the more potential customers will see your business.
Estimated cost, since the network has many marketing agencies, each of which has its own way of determining the price of SEO services. Typically, the price of such services depends on several variables, including:
The cost of developing content depends on the complexity of the topic (industry), the amount of content needed, the format and level of expertise, as well as who creates it:
And according to a Criteo survey, users also point to Facebook as the main channel for searching for products and companies (49%), followed by Instagram (27%), Pinterest (22%), Twitter (14%) and Snapchat (12%). But, users prefer to make purchases outside of social networks: the: SUMO Heavy survey showed that only every fifth (18%) makes purchases directly through social networks.
As with content marketing, marketing agencies, employees of your company, or freelancers can engage in SMM. At the same time, small businesses prefer agencies, since there is no guarantee of quality, and this is economically feasible. Less often they hire freelancers who run several SMM projects, and almost no one hires an SMM box on staff.
Approximately from 500 to 10 thousand dollars. This is a relatively new channel of digital marketing, which already brings big profits (often more than traditional methods of monetization). At the same time, such advertising is not very annoying for people: according to the IAB report, mobile ad spending grew 40% year over year, while desktop spending is flat or down.
Approximately from 1 to 50 thousand dollars a month. It's about pay-per-click advertising on Google, Facebook, Amazon, and any other web platform. This is still the fastest and easiest way to increase traffic, the number of subscribers, views and sales. And such advertising can usually be targeted by a variety of socio-demographic parameters - from gender to location on a particular street.
The cost of a PPC campaign depends on the following factors:
Here are some examples of how to do this:
A small business email marketing strategy can be simple, for example, a monthly list of ads with information about discounts and new arrivals, or complex, like automated campaigns that respond to user actions on your site in real time.
The cost of email marketing depends on the following things: