8 Common Questions About Digital Marketing Costs, Answered

Digital marketing spans many services, and costs vary widely. So, how do you budget?

While the exact amount depends on your goals, there are clear guidelines. Zoe Marketing & Communications has helped small- to mid-sized businesses navigate these costs since 2020.

Below, we answer eight common questions to help you plan your next steps.

1. How much should I spend on digital marketing?

Small businesses (under 50 employees) typically spend 7%-8% of revenue, while mid-sized companies (50-250 employees) spend 10%-12%, according to the Small Business Association.

Consumer brands spend more than B2B companies, and the split between digital and traditional marketing depends on your strategy. That’s why your exact amount will vary.

One smart approach? 70/20/10 Rule:

• 70% on proven tactics
• 20% on newer strategies
• 10% on experimental efforts

2. What does SEM cost?

SEM or search engine marketing — aka PPC (pay-per-click) or Google Ads — lets you bid on keywords to appear higher in search results.

You pay per click, and rates vary by industry. Legal and finance keywords can exceed $50 per click, while healthcare and hospitality keywords average $3 per click.

Most agencies charge 15%-50% in management fees (Zoe’s is 35%).

3. What does SEO cost?

SEO (search engine optimization) helps people find your website through keyword use, site speed and backlinks.

Monthly costs range from a few hundred dollars for local SEO efforts to several thousand for competitive industries. The average is $500-$1,500 per month.

4. What does content marketing cost?

Content marketing builds trust through blogs and sponsored content. Costs depend on quality and frequency:

• $1,000-$10,000+ per month for consistent content
• Higher costs for in-depth research and media partner placements

5. How much does email marketing cost?

Email marketing strengthens brand awareness and drives conversions.

For your in-house subscriber list, services like Mailchimp and Constant Contact charge based on email volume.

Targeted email campaigns (beyond your subscribers) start at $1,500 per month, while full-service strategies average $2,500 per month.

6. How much do social media ads cost?

With at least seven major platforms, social media ad rates vary.

For Facebook and Instagram ads, businesses typically spend $200-$2,500 per month, with higher budgets needed for broader reach or competitive industries.

Keep in mind, agency fees are separate from ad spend.

7. What factors influence overall digital marketing costs?

Your budget depends on:

• Campaign scope (single tactic vs. full strategy)
• Platforms used (Google Ads, Facebook, Mailchimp, etc.)
• Industry competitiveness (high-demand niches require more investment)
• Target audience size and location
• Marketing goals (brand awareness vs. direct sales)

8. What’s the ROI for digital marketing?

A 5:1 return on investment (ROI) is a common benchmark — meaning you earn $5 for every $1 spent.

ROI depends on strategy and execution. Content and email marketing often deliver high long-term returns, while SEM provides faster results.

A layered approach drives the most sustainable success.

Next steps for budgeting digital marketing costs

Digital marketing costs vary, but guidelines can help. Here we covered budgeting, ROI and pricing for SEM, SEO, content, email and social ads.

Need a custom quote? Talk to us at Zoe Marketing & Communications for a strategy that fits your budget.

Want more insight? Explore:

• Typical digital marketing costs with Zoe
• Why the cost of marketing varies so much