How Much Do Companies Spend On Digital Marketing – A Detailed Analysis

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In today’s time and age, investing in digital marketing is no longer optional. It has become indispensable for every business to market their business in the digital world to thrive and survive the cut-throat competition. Digital marketing paves way for them to create an impeccable online presence, which helps them to reach their customers and interact with them directly. Stats show that it is growing at 11% with each passing year.

The enhanced dependence on this marketing channel has given rise to the emergence of many digital marketing firms. Particularly in Dubai, the number of firms offering digital marketing solutions has increased rapidly in the last few years. For every company that exists in this city, it is vital to avail the services of the best digital marketing agency in Dubai.

Almost all the big companies now rely on this medium to market their products and/or services and to provide customer support services. However, the question here arises, how much do companies spend on digital marketing? If you have been wondering the same, you are not alone. A lot of marketers who are venturing into the world of digital marketing have the same question.

Here’s are some of the aspects related to the cost of digital marketing that will help you to find your answers:

Components of Digital Marketing

The budget a company sets for digital marketing depends on its components. This generally depends on the scale of the company and what it expects from this advanced type of marketing. For example, social media marketing has become a norm in this digital era. Thus, many companies set a separate budget for marketing on these platforms, which were previously used for social networking only.

Now, these platforms are not only used for marketing but interacting with existing & potential customers as well. Companies have also started to use such platforms for providing customer support services as well. Moreover, many companies have now created e-commerce stores on social media platforms. Instagram & Facebook allow users to sell and market their products and/or services in the most seamless way.

Similarly, hiring an SEO agency isn’t an alien practise for many firms. Companies have been using SEO services to boost their rankings on search engines and enhancing their online presences. Many big firms have in-house SEO experts who take care of such aspects of their digital presence and prominence on the internet.

In a nutshell, the components of a digital marketing firm greatly influence the amount they spend on it.


Another major factor that affects a company’s spending on digital marketing is its requirements. For example, a particular company may only require to spread its name while for another company, the requirement could be to generate leads. Depending on these requirements, companies allocate their budget for digital marketing. It is safe to say that the fewer the requirement, the lesser the budget.

This can be explained from an example that if a company wants to notify its customers/clients of new development, it can do so by running an email marketing campaign only. It doesn’t need extensive SEO services or social media marketing for this purpose. On the other hand, if another company requires to spread a word about a new service/product it has launched, it would need to run social media and Google Ads campaigns for an extended period.


It goes without saying how much a company earns impacts its capacity to spend on digital marketing. An ideal approach is to allocate a percentage of its ROI for this purpose. A better allocation will help to increase its returns. However, a company that is in its initial stages of formation, it doesn’t have an ROI yet. Here, it is important to decide the cost of digital marketing. It must be treated as a part of the investment in this phase.

Marketers need to conduct a complete cost and prediction analysis to decide the budget for digital marketing. It is usually higher in this phase as compared to the later stages when the company has created a name and enjoys a good reputation amongst its customers. Even in this phase, it needs to spend on digital marketing to beat the competition, create brand recognition and recall value.  


The industry or sector a company is part of also influences the cost of digital marketing. For instance, some sectors require the firm to have direct contact with its end customers, They are  usually required to allocate a higher chunk of its budget for digital marketing. On the other hand, companies in the mining, manufacturing, and industrial sector that do not have to sell their products/services to the end-users, they aren’t required to spend a lot on digital marketing.

The Takeaway

Overall statistics show that a company needs to allocate 45% of its total marketing budget for digital marketing. This percentage may vary depending on the factors discussed above. Once a company has set a budget for digital marketing, the next step is even more crucial. It has to allocate this budget for different components of digital marketing. Generally, search engine marketing captures the largest share. It is followed by online video, social media advertising, and mobile marketing respectively.

Managing all the aspects of digital marketing can prove to be quite overwhelming. This is why it is recommended to get the services of a reliable firm that specialise in this field and if you are located in the UAE, there can be no better option than We Want Zoom. Visit to know more about our digital marketing solutions and how our services can help to give your business a strong, formidable online presence.


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