One of the most common questions small and medium-sized business owners ask themselves is, “How much should I really be spending on ads and marketing?” Whether you’re running a boutique, restaurant, law firm, or service business, finding the right budget can mean the difference between steady growth and staying stagnant.
At Buried Treasure Marketing, we’ve worked with businesses of all shapes and sizes, and the truth is — there’s no one-size-fits-all answer. But there are smart guidelines that can help you make the most of every dollar you spend on marketing your company
Most marketing experts — and even the U.S. Small Business Administration — recommend spending 7% to 10% of your gross annual revenue on advertising and marketing if you want to maintain growth.
If you’re in growth mode (launching new products, entering new markets, or competing in a competitive space), that number doubles to 12% to 15%.
Example:
If your business earns $500,000 per year:
- A 7% budget = $35,000 per year ($2,900/month)
- A 10% budget = $50,000 per year ($4,100/month)
That may sound like a lot, but when allocated correctly, those dollars build awareness, drive leads, and ultimately generate new leads and sales that more than pay for themselves.
📊 Where That Marketing Budget Should Go
Not all marketing dollars are created equal. Here is an example of how a 1,000,000 succesful business spread their budget across several key areas:
- Website & SEO (15–25%)
Your website is your digital storefront. Investing in web design, optimization, and local SEO ensures customers can actually find you when they search online. With the growth of AI this is more important then ever.
- Social Media & Content Marketing (20–30%)
Regular posting, paid social ads, and engaging content build trust and community around your product and brand.
- Search Engine Marketing (20–30%)
Google Ads and social media ads can deliver fast, trackable lead results — especially when paired with retargeting.
- Email (10–15%)
Email campaigns and remarketing nurture leads and keep your business top of mind for existing potential customers.
- Streaming Audio & Video Ads (10–20%)
Digital radio and streaming TV advertising can help you reach targeted audiences affordably — a great fit for local businesses.
🚀 How to Make Your Marketing Dollars Go Further
If your marketing budget feels tight, here are a few ways to stretch your investment:
- Work with a boutique marketing agency (like Buried Treasure Marketing) that offers personalized strategies without the big-agency markup.
- Track and measure everything — from website visits to ad conversions — so you can double down on what’s working. Do your math.
- Focus locally before expanding regionally. Local SEO, Google Business optimization, and community sponsorships often yield the fastest returns.
- Test and tweak regularly — digital marketing allows you to adjust campaigns on the fly instead of wasting money on outdated or ineffective tactics.
🏴☠️ The Bottom Line
Your marketing budget isn’t just an expense — it’s an investment in growth. Whether you’re just getting started or ready to scale, spending strategically helps your business attract new customers and keep your pipeline full.
At Buried Treasure Marketing, we help small and medium-sized businesses uncover the smartest ways to spend their marketing dollars — from websites and email marketing to streaming ads and search campaigns.
Ready to find your marketing sweet spot?
Let’s dig up the treasure together. Contact Buried Treasure Marketing for a free strategy chat.
Bill Moore
Billmoore@buriedtreasuremarketing.com
727-744-8089
