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How much should a small business spend on advertising?

Digital marketing, social media and network, online business and purchasing, financial analysis and statistics, communications. 3d illustration.

Advertising can be a great way to get your small business the attention it deserves. But, like any other expense, you need to consider your budget and goals before investing in any one advertising endeavor. You probably have questions about how much money you should spend on advertising, but there are also some things that matter more than the amount of money spent: what type of company are you? how big is your budget? how do you want people to perceive your brand?

Consider the company’s goals and budget.

Before you start investing in marketing, it’s important to consider the company’s goals and budget. It’s also worth considering where your customers are. What will you do with the information once you’ve collected it?

When thinking about how much money to spend on advertising, watch the bottom line. Will this investment pay off if current sales trends continue unchanged or improve? If not, don’t waste your time and money trying something that won’t work out!

Invest in marketing that’s right for your business.

Before you start spending money on advertising, do your research and learn what works for other businesses. What is right for one business may not be right for another. Make sure you have a good idea of what you want to achieve before getting started with marketing.

Use the data available in order to make smart decisions about how much money and where it should go.

Go where your customers are.

  • Where are your customers?
  • How can you reach them?
  • What are the best ways to reach them?
  • What is the ROI of each channel?

What will you do with the information once you’ve collected it?

Once you’ve collected the data, what will you do with it?

  • Use it to improve your marketing. For example, if you know that a certain demographic is more likely to buy from small businesses with social media accounts than others, then you can use this information when creating ads and campaigns for future customers.
  • Use it to improve your product or service. If there are certain features in one of our products that are more popular than others (e.g., “free shipping”), then we might include those features in all future versions of our product—and at no extra cost! This way customers won’t have any reason not spend their money on us because they’re already getting something free from us as part of our standard offering.* Use it for customer service purposes: This could mean sending out personalized emails or responding directly on social media platforms like Facebook Messenger instead of using generic responses like “we appreciate receiving feedback!”

Watch the bottom line.

The first thing you should do is watch the bottom line. If your business is not performing well, it may be time to reevaluate your advertising strategy. You don’t want to spend money on advertising if it isn’t working and don’t have a plan for what to do with the information you collect.

What you can afford to invest in advertising depends on a lot of factors, but if you’re clear about your goals, it shouldn’t be hard to determine what you can spend.

It’s important to keep a few things in mind when it comes to advertising. First, consider your goals and budget. If you’re just starting out, you may want to focus on building awareness rather than driving sales right away. Then again, if you have a lot of products or services that are selling well but aren’t bringing in enough revenue for the business as is (or if there’s something about your brand that could use some improvement), then perhaps investing some money into advertising could help turn things around!

Second: The type of marketing will depend on what type of business model you have—and how much money those models cost! For example: If someone buys something from my website because they saw an ad on Facebook or Google+ (which has ads built-in), then I don’t need any other form of marketing since it already worked; however if someone goes directly through Amazon instead because I didn’t have time/money available for traditional channels like TV commercials etc., then additional efforts might be required depending upon how much effort needs put forth by both parties involved.”


If you’re looking for the most cost-effective marketing strategy, it’s possible to get a lot of results with a small budget. However, if you want to take your business to the next level, it may be necessary to invest more money in advertising. It all depends on what kind of return you’re expecting on your investment.


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