The Complete Guide to Digital Marketing · Budget

How to Create a Digital Marketing Budget

A budget keeps spending purposeful instead of scattered. Here is how much to spend, how to allocate it, and how to prioritise channels so a small business gets the most from its marketing money.

Updated: July 2026
Written by: Andrew Odgers, Managing Director
Reading time: 7 minutes
The short answer

You create a budget by setting goals, deciding what you can realistically afford, allocating it across the channels most likely to meet those goals, and leaving room to adjust. There is no universal figure for how much to spend: set an amount you can sustain month after month; any quoted figures are illustrative, not targets. Prioritise channels by how well they reach your audience, fit your goals, and their likely cost and return. Split the budget towards priority channels, keep a little to test others, and shift money towards what performs. Judge it by cost per result and return, reviewed regularly.

Spend with a purpose

Building the budget, and how much to spend

You create a digital marketing budget by setting your goals, deciding what you can realistically afford to spend, allocating it across the channels most likely to meet those goals, and leaving room to adjust as you see results. Tying spend to goals keeps the budget purposeful, which is why it follows naturally from your marketing plan; because a budget works best when it is planned and reviewed, a clear, goal-led allocation is the foundation of spending your marketing money well. How much you should spend on digital marketing has no universal figure, because the right amount depends on your goals, margins, industry and stage, so the practical rule is to set an amount you can sustain month after month rather than chasing a percentage. Any figures you see quoted are illustrative starting points, not targets; because a sustainable, measured spend beats occasional bursts, the right budget is the one you can maintain and measure over time.

BG 01

Sustainable

An amount you can keep up.

BG 02

Prioritised

Best-fit channels first.

BG 03

Flexible

Follow what performs.

Prioritising, splitting and measuring

Prioritising channels, splitting the budget, and knowing it works

You prioritise digital marketing channels by ranking them on how well they reach your audience, how they fit your goals, their likely cost and return, and how much effort they take to sustain, then putting more budget behind the strongest. Focusing spend on the best-fit channels avoids spreading too thin, a choice informed by understanding each channel; because not every channel suits every business, prioritising by fit and likely return is how you get the most from a limited budget. You split the budget between channels by weighting it towards your priority channels while keeping a smaller amount to test others, then shifting money towards whatever is performing best as results come in. Treating the split as flexible rather than fixed lets you follow the evidence; because performance guides the allocation, a budget that moves towards what works is more effective than one set once and left alone. You know if your budget is working by tracking results against your goals, looking at cost per result and return for each channel, and reviewing regularly so you can move money towards what performs and away from what does not. Measuring by channel shows where the budget earns its keep, which is exactly what measuring return is about; because the aim is efficient spend, ongoing measurement is what tells you whether the budget is working and where to adjust it.

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Frequently asked

Creating a digital marketing budget

How do you create a digital marketing budget?
You create a budget by setting your goals, deciding what you can realistically afford to spend, allocating it across the channels most likely to meet those goals, and leaving room to adjust as you see results. Tying spend to goals keeps the budget purposeful. Because a budget works best when it is planned and reviewed, a clear, goal-led allocation is the foundation of spending your marketing money well.
How much should you spend on digital marketing?
There is no universal figure, because the right amount depends on your goals, margins, industry and stage, so the practical rule is to set an amount you can sustain month after month rather than chasing a percentage. Any figures you see quoted are illustrative starting points, not targets. Because a sustainable, measured spend beats occasional bursts, the right budget is the one you can maintain and measure over time.
How do you prioritise digital marketing channels?
You prioritise channels by ranking them on how well they reach your audience, how they fit your goals, their likely cost and return, and how much effort they take to sustain, then putting more budget behind the strongest. Focusing spend on the best-fit channels avoids spreading too thin. Because not every channel suits every business, prioritising by fit and likely return is how you get the most from a limited budget.
How do you split budget between channels?
You split the budget by weighting it towards your priority channels while keeping a smaller amount to test others, then shifting money towards whatever is performing best as results come in. Treating the split as flexible rather than fixed lets you follow the evidence. Because performance guides the allocation, a budget that moves towards what works is more effective than one set once and left alone.
How do you know if your budget is working?
You judge it by tracking results against your goals, looking at cost per result and return for each channel, and reviewing regularly so you can move money towards what performs and away from what does not. Measuring by channel shows where the budget earns its keep. Because the aim is efficient spend, ongoing measurement is what tells you whether the budget is working and where to adjust it.