Ask any seasoned digital marketeer, and you’ll know how often he confronts multiple scenarios when deciding on marketing budgets. Either there’s a pre-allocated budget clouding the scope of expansion, or the client asks for a positive ROI for every single spending. By all means, it’s a tricky scenario.
Reportedly, almost 50% of B2B marketers in the US are juggling budget, resource, and headcount issues, primarily due to a lack of confidence from the leadership. They are skeptical of their marketing teams’ efforts to deliver a positive ROI. And that’s where this article comes in handy.
Any leading digital marketing agency in Austin, New York, San Francisco, or any other major city in the United States would agree. Curate a perfect roadmap to outline the right digital marketing budget and maximize ROI.
Keep scrolling!
How Much Does Digital Marketing Cost in 2025?
Before drilling it down to creating a profitable digital marketing budget, let’s find out where businesses are most likely to spend.
An industry report by Gartner shows businesses spend a little above 9% on marketing efforts when compared to company revenue. This is a sharp decrease from where it used to be at 9.5% in 2022 and a lot less before the last pandemic.
So, what changed?
Well, the pandemic has pushed businesses to turn conservative. But wait! That’s not everything. Gartner’s industry report also shows how more than 70% of CMOS are reeling under pressure due to scanty resource allocation, lack of trust from the leadership, and being close-fisted for online marketing.
According to HubSpot’s annual State of Marketing report 2025, businesses allocate their digital marketing budget across channels like Social Media (43%), Email Marketing (33%), and Website and SEO (32%). The positive ROI coming from these channels include:
- 16% coming from websites, blogs, and SEO
- 16% from social media and online shopping tools
- 14% from paid social media content
- 14% from email marketing
- 14% from content marketing
But there’s no one universal formula as trends keep changing, and so do customer needs and wants. One of the best examples in this case is content repurposing. A particular on-site blog can be delightfully repurposed into video, podcast, and webinar and is primarily driven by the change across buyer behavior and existing opportunities.
Digital marketing agencies now face a significant challenge as opportunities for tried-and-tested channels are dwindling. Businesses are looking for diverse solutions, either by upskilling in-house employees or outsourcing to a digital marketing agency.
This approach gives them more time to plan their investments across emerging channels. The table below provides an estimate of digital marketing costs across different service offerings.
Services | Estimated Costs (per month) |
SEO | $2000 – $7500 |
PPC | $100 – $10,000 |
Email Marketing | $51 – $1000 |
Social Media | $100 – $5000 |
Content Marketing | $5001 – $10,000 |
How To Calculate The Return On Digital Marketing Investment To Maximize ROI?
What you’re spending in terms of engagement and revenue earnings sets the stage right for effective budgeting. Here are a few of the key metrics you need to consider.
- Historical Data Benchmarking: This allows you to pinpoint channels delivering the highest returns and thereby helps you set realistic and sustainable goals. Prioritize performing channels by taking into account important factors like pipeline velocity, lead acquisition, lead quality, costing rate, MQL to SQL rate, cost per lead, and cost per lead per channel.
- Revenue Assessment: Analyze last year’s revenue for your business to gauge a realistic budget request approved by the leadership. It is recommended to allocate between 8% and 9% of your revenue to online marketing.
- Aligning digital marketing activities with core business goals: Have repeated discussions with the leadership to get clear on specific business goals that they have, especially the expected revenue targets from online marketing. Above all, ensure these are realistic targets to avoid any confusion later on.
Time To Chalk Out The Perfect Budget For Digital Marketing To Boost ROI
Setting your digital marketing budget doesn’t have to be difficult. All you need is a custom strategy that promises the best bang for your buck. From SEO to PPC, email marketing to social media management, our specialists are ready to deliver the impact you desire.
FAQs:
How much does digital marketing cost in 2025?
Digital marketing costs vary from one project to another depending on business needs. However, on average, digital marketing costs in 2025 range between $500 – $10,000 per month. Remember, your digital marketing budget depends on several factors, like investing across different social media channels, the size of a business, the expertise of a digital marketing agency, and a lot more.
What do typical digital marketing packages include?
Generally, a digital marketing package offers dedicated services like SEO, content writing and marketing, email marketing, SEO, PPC, social media marketing, and paid socials.
Is digital marketing worth the cost?
Certainly!. Whether it’s boosting brand awareness or maximizing visibility, investing in digital marketing can help you bend the curve and stay ahead of your competitors with more conversions, quality leads, and maximum conversions.