“How much should I invest in digital marketing?”
It’s one of the most common, and important, questions we hear at Stellar Digital Media.
Whether you’re a startup trying to build awareness or an established business ready to scale, knowing how much to invest in digital marketing can feel like navigating a maze. Spend too little and risk being invisible. Spend too much (or in the wrong places), and you burn through budget with little or no results.
So let’s unpack how to make smart, strategic investment decisions that align with your business goals, and actually deliver ROI.
What’s a Reasonable Digital Marketing Budget?
The general rule of thumb?
Businesses typically invest between 5%–15% of their annual revenue into marketing. Of that, at least 50% should go toward digital, especially in today’s online-first economy. But this isn’t a one-size-fits-all formula.
Here’s how we help clients at Stellar break it down:
| Business Stage | Recommended % of Revenue | Focus Area |
| Startups / New Brands | 12–20% | Brand awareness, website development, lead gen |
| Established Businesses | 6–12% | SEO, retargeting, email marketing, CRO |
| Scaling Businesses | 10–15% | Multi-channel campaigns, automation, analytics |
Key Factors That Influence Your Digital Marketing Budget
To figure out your ideal budget, ask yourself:
- What are your business goals? Are you looking to build brand awareness, generate leads, increase sales, or enter a new market?
- What’s your average customer lifetime value (CLTV)? If a new customer is worth $5,000 over 12 months, spending $200 to acquire them is a smart investment.
- How competitive is your industry? In highly competitive niches like legal or finance, ads and SEO cost more, but the ROI can also be massive.
- What’s already working (or not)? If you’ve tried some tactics in the past, look at the data. Smart marketing investment builds on proven performance.
- What resources do you have in-house vs needing to outsource? You may need to budget for strategy, design, content, PPC management, or tech tools depending on what capabilities you have in your internal team.
Typical Costs of Common Digital Marketing Services
Wondering what specific services might cost in New Zealand or Australia? Here’s a rough guide:
| Service | Monthly Range (NZD) |
| SEO (Search Engine Optimisation) | $800 – $3,000+ |
| Google Ads Management | $800 – $5,000+ (excl. ad spend) |
| Social Media Marketing | $600 – $2,500+ (excl. ad spend) |
| Email Marketing | $500 – $1,500+ |
| Website Design & Development | $3,000 – $25,000+ (one-off) |
| Marketing Strategy Consulting | $250 – $500+ / hour |
Tip: Your budget should reflect your ambition. Want big growth? Expect to invest accordingly.
What Happens If You Underspend?
Cutting corners on digital marketing is like buying a sports car and never putting petrol in it.
- You’ll struggle to reach new customers
- Your competitors will outspend and therefore outrank you
- You’ll lack the data and insights needed to make the smart decisions
- Your growth plateaus while others scale
Marketing isn’t an expense. It’s an investment when done right.
So… How Much Should You Spend?
Here’s our honest answer: It depends. But you don’t have to guess.
At Stellar Digital Media, we work with you to build a custom digital marketing plan aligned to your revenue, growth goals, and market. Whether you’re a service-based business looking for more leads, an eCommerce brand scaling ads, or a local business trying to stand out, we’ll help you invest smarter, not just spend more.
Final Thoughts: Don’t Just Budget. Strategise.
The businesses seeing the best ROI from digital marketing aren’t necessarily spending the most, they’re spending wisely, backed by data, strategy, and consistency.
Ready to invest with impact? Let’s talk strategy, not guesswork.
Contact Stellar Digital Media for a tailored digital marketing roadmap that grows your business, not just your expenses.