Planning a $1,000 Monthly Marketing Budget for Your Business

Depending on your business’s circumstances, a $1,000 monthly marketing budget could be a welcome bump up — or a painful step down. Either way, the good news is that you have options.

First, consider that 47% of small businesses spend less than $10,000 on digital marketing per year, or about $833 a month. So, if can spend $12,000 a year, you may be ahead of the curve.

“I’ve worked with many small businesses that have a monthly budget of $1K,” says Michele Potts, sales director for Zoe Marketing & Communications. “Start with the most effective option to solve your biggest problems. Often, for many, that’s looking for leads.”

More good news: Compared to a $500 spend, a $1K budget starts unlocking some very basic “for-hire” services. In our 15+ years of helping businesses with digital marketing, we’ve found six tactics that can work for $1,000 a month or less. Most likely, you’ll have to choose 1-3:

1. Google Ads/search engine marketing ($500+/month)
2. Social media ads ($400+/month)
3. Retargeting ads ($200+/month)
4. First-party email marketing ($100+/month)
5. Basic SEO services ($500+/month)
6. Basic social media management ($400+/month)

We’ll also spotlight four tactics that are tough to touch at this price point, for perspective. You can use this information to decide how to proceed with your marketing decisions.

6 marketing tactics to consider for a $1,000 monthly budget

Focus on high-impact strategies to get the most out of your $1K. Here, we’ll examine SEM, social media ads, retargeting ads, email marketing and basic SEO/social media management.

“Focus on not diversifying too much,” Potts says. “It’s OK to invest in only one or two things at this price. If your plan is too spread thin with too many tactics, it won’t be as impactful.”

1. Google Ads/search engine marketing ($500+/month)

Starting with SEM, or search engine marketing, makes sense, especially for businesses that provide services. That’s because people often search Google for these services.

Allocating at least $500 monthly helps you reach more keywords with more campaigns.

• Cost: $1-$2 per click; plan on $500 per month.
• Strategy: Use geo-targeting for local or broad focus, run multiple ad groups, use advanced keyword tools and do extensive A/B testing. (Note: Plan to add a 35% management fee for agency support.)
• Expected results: 250-500 clicks with a 3.75% conversion rate can mean 9-19 monthly conversions.

Certain industries, like law or insurance, have more competitive keywords, so these costs might be higher. Ultimately, though, SEM is a powerful tool for growing your visibility.

2. Social media ads ($400+/month)

For sheer volume, social media ads — especially on Facebook and Instagram, with a combined 5 billion users — are another solid choice for building leads and traffic.

• Cost: Around $1 per click; plan on $400+/month.
• Strategy: Run at least two month-long campaigns that target the demographics and geographic areas you want to reach. Experiment with carousel and video ads, plus A/B test different copy, visuals and audience segments. (Note: Plan to add a 35% management fee for agency support.)
• Expected results: 400+ clicks. With a 9% conversion rate, you could see 36+ conversions.

“Targeting the right audience and having a compelling message matters here,” Potts says. She recalls a Facebook campaign she ran for a restaurant at the Jersey Shore looking to promote its mid-week specials.

“We targeted residents in a 10-mile radius, plus food enthusiasts and families,” she says. “They spent $1,000 and split it over four weeks for two types of ads.” 

Their main goal was to increase likes and follows. Due to the compelling offer, they got 500 new followers — plus 20% more foot traffic and a 15% increase in sales.

3. Retargeting ads ($200+/month)

Retargeting ads re-engage visitors who interact with your website but don’t take the action you want them to (often a sale) — or you’d like them to repeat that action. “It’s available for both SEM and social media, so it’s a smart ‘add-on’ to either of those,” Potts says.

• Cost: $200+ per month.
• Strategy: Use Google Ads for SEM retargeting. This shows your display ads to users who visited your website but didn’t convert, as they browse other sites within the Google Display Network or search on Google. On social media, show ads to people who interact with your social page or visit your website, prompting them to return and complete that desired action. (Note: Plan to add a 35% management fee for agency support.)
• Expected results: A higher-than-usual 10% conversion rate.

“Retargeting keeps you top-of-mind and urges people to return and make a purchase,” adds Potts.

4. First-party email marketing ($100+/month)

Your odds of reselling to an existing customer are 60-70% — compared to 5-20% for new “cold” leads. That’s why nurturing your existing customers via email is also essential.

Monthly costs average $2,500 with an agency’s support, but with some in-house effort, you can make inroads here with less.

• Cost: $100+ for an email platform; varies by number of contacts and emails you send.
• Strategy: Use a user-friendly platform like Mailchimp or Constant Contact. Send a blend of valuable content/updates and offers. A monthly newsletter/email is a solid start. Segment your lists to tailor to different audiences if that’s a factor for you. (Note: Plan to add a 35% management fee for agency support.)
• Expected results: With average open rates of 15%-25% and a 2.5% CTR, a list of 2,000 could yield 10-15 conversions.

“Consistent email campaigns help many businesses double their repeat customers over time,” says Potts. “Even a few hundred dollars a month here can build engagement.”

5. Basic SEO services ($500+/month)

Search engine optimization, or SEO, helps people find your website faster and stay on it longer. For as little as $80, you can manage a few aspects on your own, like limited local SEO. But $500 starts to unlock some support from an agency or freelance expert.

• Cost: $500+ per month for expert support.
• Strategy: You’ll likely find help in improving onsite SEO, including keyword research and meta tags to improve search rankings — plus some off-site SEO, like backlinks to your website to build domain authority.
• Expected results: SEO often takes 6-12 months to start seeing results. These can include higher search rankings, visibility and traffic to your website/location.

Should you put half your $1K-a-month budget into SEO? “It’s a great foundational move, but for this budget, allocating more funds to ads yields quicker results, at least at first,” Potts says.

6. Basic social media management ($400+/month)

“If your goal is building brand awareness and engagement, you might consider hiring someone to manage your social media posting,” Potts says. 52% of businesses spend $100-$5,000 monthly on this, so your needs may vary.

• Cost: $400+/month for expert support.
• Strategy: Get assistance with a basic strategy, limited content creation, regular scheduling and posting, engagement with comments and messages and monthly performance reports.
• Expected results: Increased engagement and brand awareness. Businesses often see a 20% engagement boost over several months.

4 important marketing tactics you can’t get at $1,000/month

You’ll likely only be able to efficiently use 1-3 of these six tactics at the $1K rate. Don’t forget, these are all starting rates, so your costs may be higher. That said, it’s a safe bet these four other tactics will be out-of-budget:

• Content marketing: Effective web pages, blogs, videos and other quality digital content often cost $1,000+ at a professional level.
• Targeted email marketing: This tactic, which reaches quality leads outside your in-house email list, often costs $1,000+ per email.
• Full SEO management: Deeper on-page, off-site and technical SEO services exceed $1,000.
• Extensive social media management: More comprehensive strategy, content creation, posting, engagement and analytics fall in the $1,000-$5,000+ range.

Next steps for starting your marketing on a $1,000 budget

Marketing on a $1,000 monthly budget requires strategic planning and smart allocation. Here, you’ve seen a few tactics within your reach, including impactful SEM and social media ads.

“We also offer advice for $500 a month; at double that, you can unlock a decent amount,” Potts says. “Our Zoe clients start at $3,000, but even a third of that can make an impact.”

Want insight on how to optimize your marketing? Talk to us. We can help get you started. And read these additional blogs to make the most of your SEM — and better understand marketing costs:

• 3 best practices for avoiding SEM ad fatigue — with examples
• Q&A: Common questions about digital marketing costs