Business7 min
Digital Marketing Budget: How Much to Spend in 2026?
Should you spend on Ads or SEO? A breakdown of how small businesses should allocate their marketing budget for maximum ROI.
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Ashraf Kamal
20 January 2026
The 10% Rule
A general rule of thumb: Spend 5-10% of your revenue on marketing. If you make ₹10 Lakh/year, spend ₹50k-₹1L on marketing.
Where to Spend It? (The 70-20-10 Model)
70% - Proven Channels (Safe)
Put money where you KNOW customers are.
- Google Ads (High Intent)
- SEO (Long term asset)
- Retargeting (Showing ads to site visitors)
20% - Emerging Channels (Growth)
- Influencer Marketing
- LinkedIn/Instagram Content
- Email Automation
10% - Experimental (Risk)
- AI Chatbots
- New Social Apps
- Events/PR
Budget allocation by Business Type
1. B2B Service (Agency, Consultant)
- LinkdeIn Ads/Content: 40%
- SEO: 30%
- Email: 20%
- Events: 10%
2. B2C Product (E-commerce)
- Meta (Insta/FB) Ads: 50%
- Influencers: 20%
- Google Shopping: 20%
- SEO: 10%
3. Local Business (Restaurant, Clinic)
- Local SEO/Maps: 40%
- Instagram (Food/Results photos): 30%
- Google Ads (Near me): 30%
Topics
#marketing budget#digital marketing strategy#roi
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Written by Ashraf Kamal
Expert in web design and development, helping businesses grow online since 2020.
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