It's one of the first questions small business owners ask when they start thinking seriously about digital marketing. And it's a fair one — because the answers you'll find online range from "a few hundred pounds" to "tens of thousands a month" with very little explanation in between.
The truth is, there's no universal figure. But there are some sensible guidelines that can help you make an informed decision — without overspending or underselling yourself.
It Depends on Where You Are
Before looking at numbers, it's worth understanding that small and medium businesses have genuinely different needs, different goals, and different starting points. Lumping them together with one budget recommendation helps nobody.
Here's a more honest breakdown.
Small Businesses — £500 to £1,000 per Month
For a small business turning over up to £200,000 a year, a monthly digital marketing budget of £500 to £1,000 represents roughly 3% to 6% of annual revenue — a range that most financial advisors and marketing professionals consider the minimum viable investment for consistent online growth.
To put that in perspective, £500 a month is less than the cost of a part-time employee — but when spent correctly, it can deliver the kind of visibility and lead generation that a part-time hire simply cannot. At this level, focusing on one or two high-impact channels — social media management or Meta Ads, for example — will almost always outperform spreading the same budget thinly across five different platforms.
“The businesses that see the strongest return are the ones that commit to a single direction and stay consistent for at least three to six months.”
Digital marketing compounds over time — the longer you stay in, the better it performs.
Medium Businesses — £1,000 to £1,500 per Month
For a medium-sized business turning over up to £500,000 a year, a monthly budget of £1,000 to £1,500 sits between 2.4% and 3.6% of annual revenue — and the return potential scales accordingly.
At this level, the strategy shifts from presence-building to active lead generation. Running paid advertising alongside organic social media and SEO creates a compounding effect — paid ads bring immediate visibility while organic efforts build long-term authority. Businesses operating in this bracket that invest consistently typically see measurable improvements in enquiry volume within the first 90 days.
The risk at this level isn't overspending — it's underspending relative to competitors who are already running coordinated multi-channel strategies.
Not sure where you sit?
Tell us your turnover and goals, and we'll be honest about what makes sense for you.
What Affects the Number
Regardless of size, a few factors will shape what makes sense for your business specifically:
- Your goals — Lead generation, brand awareness, and online sales all require different approaches and different levels of investment.
- Your industry — Some sectors are far more competitive digitally than others. Your budget needs to reflect the landscape you're competing in.
- Your starting point — A business with no digital presence needs more upfront investment than one that already has an established audience.
The Mistake Most Businesses Make
Waiting until they can "afford" to invest in marketing. Digital marketing is what brings the revenue that makes everything else affordable. Treating it as a cost rather than an investment is the single biggest thing holding most small businesses back online.
The Bottom Line
There's no perfect number — but there is a right approach. Start with what you can commit to consistently, focus on the channels most relevant to your audience, and work with people who are transparent about where your money is going. At Crimson Digital, we work with UK small and medium businesses across both these brackets — and we'll always be upfront about what's achievable with your budget.