How much of your marketing budget goes to online advertising?


There’s a new study out that is pretty shocking, considering the number of self-proclaimed Internet marketing gurus, agencies, and consultants out there. The new study, conducted by The Boston Consulting Group, shows that only 3% of the average small business marketing budget is allocated to online advertising and marketing initiatives.

Wow. That’s incredible. An overwhelming majority of small businesses either don’t see the value of online advertising, lead generation, and sales, or don’t believe there is enough value there. Or they just don’t understand it well enough to invest in it. I’m guessing the latter probably hits the nail on the head.

Large businesses with savvy marketing departments understand the gold mine that exists in online advertising and lead generation, but small mom and pop shops don’t always get it. The problem, then, seems to be one of education. According to the study:

“[T]he survey found that many small-business executives are not fully aware of all the digital-advertising options available to them. And to the extent that they are aware of those options, they are often not sure what to do with them. This is why digital-advertising activity in the U.S. is driven by large companies.”

I highly recommend signing up for our Internet Marketing Tips Newsletter, written specifically for small business owners and decision makers. We’ll bring you up to speed with your Internet advertising and marketing options, discuss how to obtain the best ROI, and cover everything from organic SEO to PPC advertising and social media.

So what do the big corporations spend on Internet marketing initiatives? About 15% of their marketing budget, on average. Small business: If you want to get more customers, you need to go where they are. Increasingly, that’s online, even for more traditional businesses requiring face to face interaction.

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  • Jenny Carlson Reply

    Well I wouldn’t be surprised by those figures. There are limitless opportunities out there that promises better rankings. Some could be costly but there are also cheap advertising that promises ROI.

    • Administrator Reply

      Thanks Jenny. I’ve been doing SEO for many years and the cheap “quick fix” SEO solutions rarely pay off. That’s not to say that quality-minded SEOs can’t use technology to automate repetitive tasks and keep costs down, of course. Maintaining quality is the key. Thanks for commenting.

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