Search Engine Optimization (SEO), Pay Per Click (PPC), Email Marketing, Social Media Marketing, and Social Media Ads are popular marketing tactics that can either waste money or be an excellent return on your investment (ROI). The latter happens when you efficiently utilize the right marketing tool that fits your business. How much should the marketing budget be for SEO, PPC, Email Marketing, or Social Media Marketing?

So you don’t get the wrong idea of what you are about to read, there are two things we should be clear about:

  • There is no set amount for a marketing budget.
  • The right budget for one business, may not be the right budget for your business.

The marketing options mentioned above come under digital marketing, but you have to be careful not to pour all your money into it all at once. Strategic spending will yield better returns.

According to Wordstream

In the United States, every dollar spent on email marketing has an ROI of $44.

SEO Returns

Leads from search engines have a 14.6% close rate, while outbound leads, i.e. cold-calling, direct mail, etc., have a 1.7% close rate.


Paid advertising returns $2 for every $1 spent – a 200% ROI.

Social media returns can be measured by the numbers of follows, likes, interactions, and clicks.

We share these stats to show that all of these practices generate great results if applied appropriately. For one business, email marketing can do wonders, while for another, Social Media Marketing may perform better.

How to Maximize Profits Using These Channels for Your Business

Follow the competition

You are not the only company in your industry and you will not be the only one doing good business. There is a lot you can learn from your competition. Closely analyze their strategies. Find their most active channels and modes of communications. Look at what kind of content they are putting out.

Utilizing competitor analysis tools can help simplify the process of understanding the activity of your competition. Check out this list of the top 14 competitor analysis tools compiled by Talkwalker, a social media analytics and monitoring platform that helps you optimize your brand and boost its reputation.

Why follow the competition?

Since you and your competitors share the same audience, the channels they are working on are already tried and tested. This saves you time on research, but this does not mean you blindly follow what your competition is doing.

Following the competition means putting more money on the chosen/preferred channels first, instead of spending equally across all platforms. You still need to test what will work best for your company. Of course, your message and approach will need to be different if you want to stand out.

Sharing your content/product on the same channels as your competition means you are directly jumping in. People on that platform will now have additional brands or products to compare, and they will love that as consumers.

Test and implement

Finding your own audience can be a rewarding journey. You begin to discover what will become successful in your long-running marketing campaigns. Once you have narrowed down your options and found what works, you will notice the boost in your ROI.

In the journey, you will come across some interesting revelations, such as the Unique Selling Proposition, or USP, a marketing strategy that is created to inform customers about how your own brand, or product, is superior to the competitors. There may be times during your journey that you feel you are getting, but the audience’s reaction toward your company will give you a new USP for your brand. Let your brand find its message with the audience naturally and then build on it, regardless of what the competition is doing. There is great satisfaction when the new brand develops.

You will have insights and data that your competition will not. You can then gain the upper hand.

Fun fact: Harry J. Sonneborn made Ray Kroc realize that McDonald’s was not in the food business but was actually in the real estate business.

Respect the journey, even when you don’t necessarily follow the competition.

In summary, you can begin your marketing by following your competition, and then start tweaking your own ideas as soon as you gain traction.

What’s the Right Marketing Budget?

We all have been in a situation where we are unsure of the correct amount to budget. A rule of thumb for a marketing budget might go like this…

For startups or new companies: Allocate 12-20% of your total revenue for your marketing budget. If you don’t have revenue yet, use your forecasted or projected revenue.

If you are an established business: You can plan to spend 6-12% of your revenue on marketing.

You can find many articles in agreement within these ranges, as also suggested by the United States Small Business Administration.

Remember, the numbers are just a rough idea, so you can adjust with a particular budget amount as you find necessary. If your campaign is giving you suitable results, you can then allocate more money to it. If the results are not satisfactory, you can reduce the current campaign budget and then do some brainstorming and rethink your strategy. Your marketing budget will increase or decreases depending upon the response to your campaign.

Also read:

Anatomy of Driving Sale Through Digital Marketing Efforts

Driving Sales Through Digital Marketing