Digital Marketing Budget: How to Spend Your Marketing Budget in Perth

Working out a digital marketing budget can feel like roulette, especially when every dollar has to be accounted for.

I get it. You want more enquiries, but you don’t want to throw money at things that don’t work. A clear digital marketing budget is what separates scattered activity from marketing that actually works for your business.

For most Perth business owners, the hard part isn’t picking a number. It’s knowing where that money will do the most good. Which channels should come first? When should you shift your spend? A clear plan lets you make those calls with confidence, rather than crossing your fingers.

Once you know how to spend your marketing budget, every dollar can work towards a real business goal. If you’d like a hand, my marketing and branding consultancy at Inkspot Marketing can help you set priorities.

Together, we’ll build a marketing strategy around what your business actually needs.

What Is a Digital Marketing Budget?

Put simply, a digital marketing budget is what you plan to spend on online marketing over a set period. That could be a month, a quarter or a year.

Depending on your goals, it might cover:

• Paid advertising: Google Ads, Facebook Ads and Instagram Ads.
• Search engine optimisation (SEO): Getting your website seen in search results.
• Content marketing: Useful website pages, articles and other content your customers want to read.
• Social media marketing: Planning and posting content on the platforms your customers use.
• Email marketing: Staying in touch with customers and nurturing people who aren’t ready to buy yet.
• Website improvements: Better landing pages, an easier experience for visitors and proper conversion tracking.
• Professional support: Marketing consultants, copywriters, designers and other specialists.

Keep in mind that your total marketing budget isn’t the same as your advertising spend. Paid ads are just one piece of what it takes to attract and win customers.

What Is a Typical Marketing Budget for a Small Business in Australia?

I get asked this a lot. There’s no single typical marketing budget, but a common rule of thumb is to spend around 10% of your revenue on marketing.

Treat that as a starting point. A brand-new business building awareness will spend differently from an established Perth business that already gets regular enquiries.

What Is a Good Budget for Digital Marketing?

A good budget is one you can keep up while working towards clear goals. So start with what you want marketing to do for you. Do you need more enquiries, more online sales or better local visibility? Maybe you want to attract a particular type of customer.

Then think about what a new customer is worth to you. Look at your sales conversion rate too. Together, those tell you how much you can sensibly spend to win each customer.

Don’t pick a figure just because another business spends it. Build your budget around your own goals, and check in on performance regularly.

Average Marketing Budget for Small Businesses and Startups

The average marketing budget for small businesses is usually 8-10% of their revenue, but you should still look for benchmarks that match your industry, size and location. There are small businesses that go up to 20% of their revenue, especially in a competitive market.

The same goes for the average marketing cost for startup businesses, or average marketing costs for startups. Startup costs vary a lot. It depends on whether you need a new website, branding, content, paid ads or ongoing marketing support.

For Australian businesses, lean on local evidence and treat industry averages as a starting point. Your budget should reflect where your finances really sit and what matters most to your business right now.

How to Spend Your Marketing Budget Effectively

Working out how to spend your marketing budget starts with what needs to improve in your business.

This is how I’d approach it:

• Set a clear goal. Decide whether you need more qualified enquiries, stronger local visibility, online sales, or better customer retention.
• Understand your audience. Get clear on who you want to reach, what they need and where they go looking for help.
• Choose relevant channels. Put your money into the activities most likely to reach those people and support your goal.
• Set a realistic allocation. Decide how much each activity gets, based on its purpose, its cost, and what you expect from it.
• Track performance. Measure enquiries, conversions and what it costs to win each customer, wherever you can.
• Review and adjust. Let the results show you what deserves more money and what needs work.

If you’re not sure which activities deserve your budget, that’s completely normal. A tailored marketing strategy and consultancy service can help you set priorities and connect your spending to your business goals.

How Much Should You Allocate to Advertising?

If you’re just starting out, most small businesses begin Google Ads at around $500 to $1,000 a month in ad spend, and Facebook or Instagram ads from about $300 to $500 a month. Spending more gives you more reach, but only if your ads and landing pages are set up properly first. Keep in mind that’s ad spend only. Any management fees are on top.

Say you run a Perth service business. Google Ads can put you in front of people who are already searching for what you do. Facebook and Instagram Ads can reach the right people before they’ve started looking for a provider. If you’d rather hand paid campaigns over, take a look at my PPC management services in Perth.

The right split depends on your audience, competition, campaign goals and conversion data. One tip before you spend more on ads. Make sure your landing pages and enquiry process are ready for the extra traffic. Otherwise, you’re paying for clicks that go nowhere.

Digital Marketing Budget Example for a Perth Small Business

Let’s make this practical. Picture a Perth service business with a $2,000 monthly marketing budget. This marketing budget example shows one way that money could be split.

These figures are an example only. They aren’t an Australian industry average, and they won’t suit every business. Real costs depend on the services you buy, your campaign needs, and whether you outsource the work.

The example also assumes these costs fit inside the business’s total marketing budget. Some businesses will need extra for website development, software or specialist support.

What matters most is that every expense has a purpose. If the business needs enquiries quickly, paid advertising might come first. If its website barely shows up in search, SEO and content may deserve more attention.

Review the results over time. The right split today may not be the right split in six months.

How Much Should You Budget for Content Marketing?

Your budget for content marketing might cover topic research, writing pages and articles, and designing visuals. It should also cover publishing and measuring how that content performs. If you count everything content-led, including SEO, articles and social media content, it often makes up half your budget or more. In the example above, that’s $1,050 of the $2,000.

Good content answers your customers’ questions, shows them you know your stuff, and helps you get found in search. But it takes consistency. Results also depend on quality, competition and whether you’re writing about what your customers actually need.

For a Perth business, useful content might answer local customer questions, explain your services clearly, or help buyers compare their options.

Please don’t publish just to fill a content calendar. Choose topics that support your business goals and connect naturally to your services.

Can You Market a Business With No Budget?

You can, but it won’t be completely free. Zero-budget marketing usually means promoting your business without paying directly for advertising. It still takes your time and effort.

Depending on your business, low-cost options might include:

• Keeping your Google Business Profile accurate and up to date.
• Publishing helpful content on your website.
• Sharing useful updates on the social media accounts you already have.
• Asking happy customers for honest reviews.
• Building referral relationships with businesses that complement yours.
• Improving the website pages and calls to action you already have.

For businesses that rely on locals, my local SEO services in Perth can lift your visibility in search and Google Maps. You can also read more ideas on how to market your business with zero or no cost.

I’ll be straight with you. These activities build visibility and trust, but they can take a while to pay off. Free methods also have limits, especially if you need to reach more people or you’re in a crowded market.

Pick the activities that suit your time, your audience, and your goals. Then keep an eye on what’s working.

Common Marketing Budget Mistakes to Avoid

Even a well-planned budget can fall flat if the spending isn’t tied to what your business is trying to achieve.

These are the mistakes I see most often:

• Spending without a clear goal: Every major activity needs a reason to be there.
• Choosing channels because competitors use them: Your customers and your goals should guide your choices.
• Ignoring conversion tracking: Clicks and website visits don’t always turn into enquiries or sales.
• Spreading your budget too thinly: Try to do everything, and you won’t put enough into anything.
• Expecting immediate results from every channel: Some activities work fast. Others take months.
• Failing to review performance: Regular check-ins show you where money’s being wasted and where there’s room to improve.

A good budget does more than cap your spending. It’s a plan for where your money goes and how you’ll know it’s paying off.

Need Help Planning Your Marketing Budget in Perth?

Your marketing budget should work for your business goals. You shouldn’t be left guessing where the money goes.

At Inkspot Marketing, I work as an outsourced marketing lead for small businesses. That means I own the marketing decisions with you, including where your budget goes and why.

Unsure where to invest next? Take a look at my Marketing & Branding Consultant service. We can talk through a more focused approach together.

Ready to make your marketing budget work harder? Get in touch with Inkspot Marketing.

Frequently Asked Questions

What Is the 70–20–10 Rule in Digital Marketing?

The 70–20–10 rule is a way to split your marketing budget. Roughly 70% goes to proven strategies, 20% to growth opportunities and 10% to experiments. The right split depends on your goals, budget and results, so treat it as a guide. At Inkspot Marketing, I help Perth small businesses work out their priorities, plan their budget and build a strategy around their goals.

Is $10 a Day Enough for Google Ads?

It depends on your industry, cost per click, competition and conversion goals. In some markets, $10 a day is enough to test a campaign. In competitive industries, it may not bring in enough clicks or conversion data to learn much. I can help you assess your advertising goals and choose the right targeting. We’ll also manage your Google Ads budget so less of it is wasted. Explore my PPC management services in Perth to learn more.

How Can a Small Business Reduce Marketing Costs?

Start by focusing on activities that support clear goals. Improve the website content you already have, prioritise the channels that matter, and track your enquiries and conversions. Rather than cutting everything, find where money’s being wasted and move it to what’s working. Inkspot Marketing helps Perth small businesses make informed marketing decisions and build a practical strategy that fits their budget.

Denise Choong

Author

Denise is a small business marketer and copywriter in Perth, and the founder of Inkspot Marketing. With over 10 years of marketing experience, she’s worked with businesses in SaaS, finance, NDIS, medical, hospitality, and other industries. 

Denise is passionate about using sound marketing practices to help business owners see tangible results in their investment. More than quick short-term wins, she works closely with businesses and marketing teams to see long-term, lasting growth.