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Why Marketing Costs Vary So Much: 5 Straight Answers

November 9th, 2023 | 2 min. read

By Kim Kovelle

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Why is it so hard to get a direct answer about digital marketing costs? It’s frustrating. And many agencies don’t even post pricing on their websites.

The answer? It depends on many factors — including business size, target audience, budget, competition and goals. Marketing isn’t one-size-fits-all, after all, and customization is key.

At Zoe Marketing & Communications, we help businesses make sense of marketing costs. Here, we’ll take a look at the most common causes of fluctuating costs.

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5 top reasons why marketing costs are so inconsistent

1. Size and type of your business

How big is your business, and what industry are you in? Size, employee count, locations and industry influence marketing costs.

A small business may focus on local SEO (search engine optimization), while a larger company invests in multichannel campaigns.

Some industries also require higher investments. For example, legal and mortgage businesses pay up to 17 times more per Google keyword than health or hospitality companies.

2. Your target audience

Who you’re reaching — and how often — affects costs.

  • Geography: More ZIP codes mean more money. A school may only target local families, but a tourism board needs a broader campaign. Also, location matters. Marketing in New York City costs far more than in Toledo, Ohio, for instance.
  • Demographics: Age, income and interests impact marketing expenses. The more niche your audience, the more specialized (and expensive) tactics become.

3. Your budget

Your budget fuels your strategy. A smaller budget prioritizes cost-effective tactics like SEO, while a larger budget enables extensive, multichannel efforts.

According to the Small Business Association:

  • Small businesses (under 50 employees) spend 7%-8% of revenue on marketing.
  • Mid-sized businesses (50-250 employees) spend 10%-12%.
  • Larger companies (250+ employees) can spend 20% or more.

If you market to consumers vs. businesses, expect to invest even more.

4. Your market competition

A crowded market drives up costs.

An autism therapy practice in an area with 20 competitors may need an aggressive SEM (search engine marketing) campaign to stand out.

But a unique home improvement business with little competition can stretch its marketing dollars further.

5. Specific goals of your plan

Your marketing goals shape your budget.

  • Brand awareness leans on social media (more affordable) and content marketing (pricier).
    Sales growth requires SEM, email campaigns and customer acquisition, which are more costly.

A school may focus on community outreach, for instance. A medical practice may invest in reputation management. Different industries and goals demand different tactics — and costs.

Next steps to figuring out marketing costs

Unfortunately, marketing costs will always “depend.” But knowing what they depend on makes that reality easier to digest.

As you’ve learned, your costs are shaped by your business size, audience, budget, competition and goals.

The good news? Getting a clearer picture costs nothing. Talk to us. Zoe Marketing & Communications can help you see where your budget can go.

To help you weigh your options, consider:

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From the first steps and your role in success to specific services, pricing and success stories, learn all about partnering with Zoe.

Kim Kovelle

As Zoe Marketing & Communications’ content manager, Kim Kovelle brings over 20 years of writing and editing experience in metro Detroit. She has strong roots in community journalism and a knack for making complicated topics make more sense.