How big is your social media budget? Do you think it is enough? To answer that question, you need to analyze the size of your business. A small business does not require the same investment in social media as a larger company does. The difference is not in the quantity or quality of publications, although we must emphasize that quality should always prevail regardless of the type of business; the point of comparison has to do with the kind of interaction with your audience and how they use social media.

Before assigning resources towards social media, you must consider the following: scope of your business, your target’s behavior, and the goals that you want to achieve with the investment of time and money.

Many people confuse promotional campaigns in social networks with sales campaigns, and THEY ARE NOT THE SAME. Although promotion in social networks increases the company’s reputation, while bringing the user closer to the brand, it is not a form of direct advertising that increases sales by itself. The perfect strategy must be combined with other types of marketing to achieve the goals set in the beginning.

Now, if you want to define how much budget to invest in social media, we recommend you to consider the following steps:


Set a general marketing budget: This depends on the size and scope of your business, how long has it been on the market, the type of expenses it generates and how profitable it is. Also consider the needs of your company, because you cannot leave out the development of your brand regarding web presence, logos, sales presentations, ads campaigns, etc.

When you first start your business, your marketing budget will need to be much higher in order to get your brand developed. Many small businesses set a starting marketing budget of about 20% of sales. However, once your brand has been established, this can decrease. – Jenelle McCleary


According to, “businesses that earn more than $25 million in annual revenue spend an average of 9% of that revenue on marketing. Those companies that make less than $25 million, usually spend an average of 11% of revenue on marketing”. You can also have a median and set 10% of total annual income as the budget for marketing.


Consider a percentage for digital marketing: Once you have assigned a marketing budget, you must decide how much of that percentage is for digital marketing (online advertising, email marketing, blogs, website positioning, social media networks, etc.).

The type of business you have will determine your digital approach and budget. Jenelle McCleary gives a clear example when she says:

For instance, if your business is run solely through a website, you will probably need to dedicate most, if not all of your marketing budget to online marketing. However, if you are a local walk-in store with a small website online just for company image purposes, then you might want to dedicate only a quarter of your marketing budget to internet marketing, specifically to local search optimization.

It’s a fact that digital marketing is growing and gaining popularity over traditional marketing channels. This trend is something that you can’t ignore when establishing your social media budget.


Set a percentage of the marketing budget for SEO: It is unquestionable that, much of the digital marketing budget is devoted to SEO through the development of quality content. If you do not have good content to share with your audience and generate feedback, the efforts to position your brand or business in the digital market will be in vain. However, another important part to which you must direct the budget is precisely the different ways in which you will share that content.

Companies that know how to take advantage of these digital tools commonly assign about 50% of their budget between SEO and social media marketing.

In 2015, the average business would be smart to allocate about 25% of their internet marketing budget to a great social media marketing plan. Remember though, this should be backed by a strong content strategy, so your company has something to share and discuss on social media and so there is a reason for them to go from your social media page to your site. – Jenelle McCleary


Monitor the results: All investment requires follow up. It is not just about allocating the budget for digital marketing and launching the campaign on social media. The success depends mostly on testing and monitoring performance and results. In this regard, Jenelle McCleary says that:

When it comes to social media for business, the potential rewards can be great. However, there can be changes in the market, on internet trends, and in the effectiveness of your campaigns in general. If you find your budget isn’t working, analyze why and make changes.

There you go! We hope this will help you define an adequate budget for social media. If you need more guidance, we are happy to help you. Contact us!