How Much Should a Small Business Spend on Digital Marketing?
New clients often ask me to name a figure before we've discussed a single goal. I understand the instinct, but budget is an output of strategy, not an input. Here's the framework I actually use.
Start from a target, not a percentage
Forget "spend 7% of revenue" rules of thumb. Start with: how many new customers do you want this month, what is a customer worth to you, and what can you afford to pay to acquire one? Those three numbers set your budget.
The acquisition maths
- Average customer value (including repeat business) — say ฿5,000.
- Acceptable cost to acquire one — perhaps 20%, so ฿1,000.
- Target new customers per month — say 20.
- Indicative budget: 20 × ฿1,000 = ฿20,000/month to test.
Test small, then scale what works
Never bet your whole budget before you have data. Run a focused test for 4–6 weeks, find which channel and offer convert, then pour budget into the winner. Scaling a proven campaign is low-risk; guessing at a big launch is not.
The right budget is the one where every extra baht still comes back as more than a baht. Find that point, then keep feeding it.
Spend should follow evidence. Start at a level you can sustain for two to three months, measure ruthlessly, and let the results — not a generic percentage — tell you when to scale up.
I help Thai businesses turn marketing theory into measurable results.