How to split a small marketing budget across channels

"How much should I spend on each channel?" is one of the most common questions small businesses ask. The honest answer is that it depends on your customers. But there is a sensible way to work it out.

Start with the foundations

Before you spend a penny on promotion, make sure the places people land are working. That means a website that explains what you do clearly, loads quickly on a phone and makes it obvious how to get in touch, and most sites fail on one of the same five things. Sending paid traffic to a weak website is like pouring water into a leaky bucket.

Fund demand capture before demand creation

Demand capture means being there when people are already looking: search ads, SEO and your Google Business Profile. Demand creation means making people aware of a need they weren't thinking about: social ads, display, sponsorship. For most small businesses, capture pays back faster, so fund it first.

Test small, then scale what works

• Pick two or three channels, not six
• Give each a clear goal and a test budget you can afford to lose
• Run each test long enough to learn something, usually several weeks
• Move money towards the channel with the best cost per customer

Keep a slice for the long game

SEO and content take months to pay off, but they compound. Once the short-term channels are working, set aside a steady portion for work that builds value over time.

Measure cost per customer, not cost per click

Cheap clicks mean nothing if they don't turn into customers. Track what each channel costs per enquiry and per sale, and let that decide next quarter's split.