How Much Does Digital Marketing Cost?

Is your business struggling to bring in sales?

Maybe digital marketing can do some wonders. However, as a newbie in this field, I know digital marketing costs can be very intimidating.

Digital marketing prices start at $500 per month and can go as high as $10,000+ per month. Add to it different services under digital marketing, their costs, and the pricing models that confuse business owners like you.

Most entrepreneurs struggle to decide the services they want to take and which pricing model they should choose. Will a monthly service package be good? Or should you go for hourly rates? Or would a flat project price model be better?

The options are endless, and the price bracket is huge. That is why we are here with this digital marketing cost guide that will help you understand this pricing structure.

How Much Does Digital Marketing Cost In 2024?

Digital marketing costs are not fixed. You can get the same service for $200, $500, and $1000. What matters is the quality of service and the results you are getting.

The cost of digital marketing depends largely on the:

• services you take
• agency you hire
• your business niche
• project duration and complexity
• geographical location of the digital marketing agency

We will discuss these factors in detail in the next section. For now, let’s understand the average cost of digital marketing and how much businesses usually spend.

As Google became mainstream and social media platforms gained popularity, we saw businesses taking on these online platforms to promote their brand and engage with customers.

While it’s difficult to pinpoint the average cost of digital marketing, a business generally spends $1000 to $10,000 per month. Most of the spending goes towards search engine optimization, content marketing, and email marketing. Social media marketing, PPC advertising, and Google Ads come next as priorities for businesses.

This price bracket doesn’t mean that you can spend whatever you like on digital marketing. The US Small Business Administration suggests ideally spending approximately 7% – 8% of their gross revenue on marketing. Also, 50% of this should be spent on digital marketing specifically.

However, the majority of businesses spend around 10% to 14% of their budget on digital marketing. This is because digital marketing has become the sole medium of generating leads and boosting sales. It is the bridge that connects businesses to their target audience, helping them establish their brand authority, attract potential customers, and build stronger customer-brand relations.

To give you a fair idea, here is the average cost of digital marketing services:

• Search engine optimization (SEO): $2,500 – $7,500 per month
• Pay-per-click (PPC) advertising: $100 – $10,000 per month
• Content marketing: $5,001 – $10,000 per month
• Social media marketing: $100 – $5,000 per month
• Email marketing: $51 – $1,000 per month

Please note that these are standard prices. The final cost of digital marketing will depend on your business goals and marketing needs.

Types of Digital Marketing Pricing Packages

Here are some of the common digital marketing price models.

Package Pricing

Digital marketing companies offer service packages that include a variety of services. They charge for this service package on a monthly basis.

The cost of the package depends on the services in the bundle. Usually, agencies have 4-5 packages with different offerings and costs. Depending on your business needs, you can select the package that suits you the most.

If you are looking for long-term profits from digital marketing, going for a package is the ideal way. The best thing about a service package is that you can start your branding efforts on all fronts, from website to social media and ads quickly.

Hourly Rates

If you are hiring digital marketing consultants or marketers, they will charge on an hourly basis. The hourly rate depends on the experience of the consultant and your business niche.

You can track the number of hours the consultant has worked in a month and generate invoices accordingly.

However, most businesses avoid paying hourly because of the complications in monitoring the work.

Custom Quotations

Custom quotations are where you share your requirements with the digital marketing agency and ask for quotations. Depending on your project needs, scope, and duration, the agency will propose a quotation.

Custom quotations are more flexible, scalable and suitable for startups and small businesses.

Flat Project Pricing

Digital marketing work like keyword research, video editing, content writing, and website audits is best for flat project-based pricing models.

These works are a necessary part of the marketing yet not required daily. So, you can hire freelancers or part-time people at a flat rate for these jobs.

For example, you can hire a freelance writer on a per-word or article basis. Similarly, you can hire a video editor for a video fee.

Or you can make a package of 10 content pieces to be written or 5 videos to edit monthly and request prices for the same.

What Do Digital Marketing Services Include?

Digital marketing encompasses a wide array of services that can help your company build its brand online.

Here is a glimpse of some popular digital marketing services and their costs.

SEO

Search engine optimization is the first priority for businesses looking to spend on digital marketing. It is estimated that 48% of companies spend $2500 to $7500 per month on SEO. While 64% of them prefer hourly rates for SEO services.

We have found that a monthly retainer pricing model is best for SEO. It’s because SEO needs lots of research and strategy, which you cannot restrict in hours. Plus, it is an ongoing process and it usually takes 2-3 months to be able to see the initial results.

So, it’s always better if you discuss the deliverables and deal with monthly rates.

Content Marketing

Content marketing is another important aspect of digital marketing. It is the content, whether on the website, social media, or any other online platform, that gives voice to your brand. It is a medium to narrate your brand story and connect with your customers.

A market survey indicates that 19% of businesses spend an average of $5000 to $10,000 on content marketing. While 17% spend in the range of $1000 to $5000.

The cost of content marketing depends on your business size and marketing goals. Also, the cost is affected by the volume of content you need and the content calendar you have planned.

Small businesses that require 4-8 blogs and 2-4 guest posts monthly will have to spend less. On the contrary, tech businesses that aggressively publish long-form blogs and request guest posts from high-authority websites have to spend a lot.

Moreover, the cost of content marketing also depends on your business niche. Beauty, travel and food are cheaper than IT, SaaS and web3. It is because writers and marketers charge more for complex niches which ultimately affects your pricing.

Unlike SEO, you can go for hourly rates for content marketing. Or you can also decide on a monthly rate with variables depending on the number of words and content pieces delivered.

SMM

Businesses dedicate a large percentage of their digital marketing cost to social media marketing. It is one of the popular marketing types that has been proven to enhance a brand’s online visibility and bring in sales.

27.7% of businesses spend around $1000 to $5000 on social media marketing. While 24% of companies incur monthly spending of $100 to $1000.

Large brands and enterprises that have million-dollar revenue figures spend somewhere between $20,000 and $50,000 for social media campaigns. These prices include paid ads on social media marketing platforms.

Similar to SEO, monthly retainer pricing is more suitable for SMM as compared to hourly or flat project charges.

Email Marketing

60% of businesses spend $5100 to $10000 on email marketing. However, the cost depends on your email design, the number of emails to be sent, and your business niche.

Companies focus on email marketing as it is one of the most cost-effective ways to promote your products, increase brand awareness, and boost conversions.

Studies suggest an average ROI of $36 for every $1 spent, which translates to a whopping 3,600% return.

But to get such a massive ROI, you must hire an experienced agency that has a core specialty in email marketing. With a well-crafted strategy, email marketing offers a powerful way to reach your target audience and see a significant return on your investment.

PPC Advertising

PPC advertising is another effective digital marketing service that can lead to enhanced online visibility and conversions.

The best thing about these advertisements is that they appear at the top of search results so chances of clicks are high. Even if they don’t click, your brand’s name is visible and imprinted in their memory. This ultimately boosts your brand awareness.

Some studies suggest PPC generates an average return of 200%, meaning for every $1 spent, you get $2 back. However, it’s important to remember this is just an estimate.

Web Design & Development

Web design and development is more costly than other digital marketing services.

Web design can cost you $501 to $5000 on average annually. While you can expect to pay $1000 to $145,000 yearly on web development.

Often, businesses overlook these services and focus more on other types of digital marketing strategies. However, they fail to understand that the final goal of social media marketing or email marketing is to direct people to your website.

And if your website is not user-friendly, users will either skip or refrain from buying from there. Thus, the money spent on those marketing efforts will go in vain.

That is why, though web development is costly, it is a necessity. A responsive and easy-to-navigate website enhances the user experience and encourages them to buy. In the best-case scenario, easy-to-use features on your website turn casual buyers into loyal customers and make them come back.

You can go for flat project rates or hourly rates for web design and development services. It suits the nature of the work, and you can get the best value.

Important Factors That Influence Digital Marketing Prices

As we discussed before, digital marketing costs are not fixed. Even the industry’s average cost of digital marketing might not be true for you. It’s because every business is unique and requires marketing strategies tailored to its goals and target audience.

You might be spending $5000 monthly on digital marketing and getting a high ROI. While another might be spending $10,000 and not getting substantial results.

So, how much does digital marketing cost?

It is a tricky question whose answer depends on the following factors:

Your Business Industry

Competitive industries with high-value products or services often require more targeted and nuanced strategies, leading to potentially higher costs.

For example, a legal firm might pay more for PPC advertising due to competition for specific keywords, compared to a local bakery.

Agency’s Expertise

Experience is a valuable commodity. Agencies with a proven track record of success in your industry will likely command higher fees.

Their expertise allows them to create data-driven strategies, optimize campaigns for maximum impact, and ultimately deliver a higher return on investment (ROI).

Project Scope And Complexity

The complexity of your digital marketing project significantly impacts the price tag.

A simple social media campaign with basic content creation will naturally cost less than a comprehensive strategy involving SEO optimization, content marketing across multiple platforms, and ongoing analytics.

Company Size

The size of your company also plays a role. Larger corporations with established marketing teams might choose to handle some aspects of digital marketing in-house while outsourcing specific tasks like content creation or paid advertising.

Smaller businesses, on the other hand, might require a more comprehensive solution from an agency, potentially impacting the overall cost.

Digital Marketing Cost FAQs

How much should a company spend on digital marketing?

You can choose to spend 7% – 10% of your revenue on digital marketing. However, don’t fall for the cost factor only. Sometimes agencies with average costs offer higher quality services than star-studded agencies with over-the-top prices.

What should I look for in a digital marketing company?

A digital marketing company plays a crucial role in your company’s success. So, you should always check their portfolio meticulously. See if they have relevant experience in your industry. Also, focus on the results they have delivered to their clients. Further, you should also check their online reviews and client testimonials.

Cost, contract terms, and communication approach are other important factors that you should consider before hiring a digital marketing company.

What is the average cost of digital marketing?

The average cost of digital marketing services, including SEO, email marketing, content marketing, PPC advertising, & social media management, falls somewhere between $2000 to $10,000 per month.