Determining the right level of investment in marketing strategy is a common challenge for Australian small and medium enterprises. There’s no one-size-fits-all answer, but we can guide you towards a sensible approach. Too little, and you risk invisibility. Too much, and you’re burning cash without guaranteed returns. The key is to think of strategy as the foundation for *all* your marketing efforts, not just an upfront cost.
Many businesses mistakenly equate marketing strategy with simply having a social media plan or running Google Ads. True strategy defines your target audience, clarifies your unique value proposition, maps out your customer journey, and sets measurable objectives. Without this, even brilliant tactics will likely underperform. So, how do you allocate funds?
- Percentage of Revenue: A common starting point is 5-10% of gross revenue. Businesses experiencing rapid growth, or entering competitive markets, should lean towards the higher end. More established businesses with strong market share might operate effectively at the lower end.
- Competitive Benchmarking: Analyse what your key competitors are investing in marketing. Tools like SEMrush or Ahrefs can provide estimates of their digital spend. This isn’t about matching them dollar-for-dollar, but understanding the level of investment required to compete effectively.
- Customer Acquisition Cost (CAC): Understand how much it currently costs you to win a new customer. A well-defined strategy aims to *reduce* CAC over time by improving targeting and conversion rates. Investing in strategy upfront can significantly lower long-term acquisition costs.
- Long-Term Value (LTV): Consider the lifetime value of a customer. If a customer is worth significantly more over time, a higher initial investment in strategy to acquire them is often justified.
For many SMEs, an initial investment of $5,000 – $15,000 for a comprehensive marketing strategy is realistic. This could cover market research, competitor analysis, persona development, and a detailed marketing plan with key performance indicators. Remember, this isn’t a ‘set and forget’ exercise. Regular review and adaptation – typically quarterly – are crucial, and should be factored into your ongoing budget. Looking ahead, businesses that proactively refine their strategies will be best positioned to capitalise on emerging opportunities in 2026 and beyond.
Ultimately, the right investment is the one that delivers measurable growth. We recommend starting with a solid strategic foundation, tracking your results closely, and adjusting your investment accordingly. If you’re unsure where to begin, a consultation with a marketing specialist can provide tailored guidance for your specific business.
