Many business owners think: “We’ll hire an agency, they’ll do the rest.” The truth is – the magic happens when you partner with your agency and allocate budget strategically. And when digital marketing is used effectively, it really does get results. That’s why businesses around the world continue to invest in it more heavily and why PricewaterhouseCoopers predicts that digital advertising will grow at a compound annual growth rate of 6.6% through 2026, faster than the economy as a whole.
As ad spend grows globally, investing smartly matters more than ever. Digital advertising is expected to remain the fastest-growing channel in 2026, with global spend projected to reach billions.
Here’s how to set up your budget to get the best returns.
Start with clear, measurable goals
Before you spend a cent, clarify what success looks like. Are you after:
- More website traffic?
- Brand awareness?
- Generating leads?
- Boosting sales?
Your goals shape what services make sense – from SEO and content marketing, to PPC, social ads, or email campaigns.
Know your audience
You know your business – we know how to reach people. By analysing past sales data, customer behaviour and market research, we help you pinpoint who to talk to, when and how.
That means your ad spend won’t be wasted on the wrong people – and you’ll get better returns for every rand or dollar you invest.
Prioritise channels that deliver the best ROI
Not all marketing channels are equal. For example:
- PPC or paid search is often best for driving traffic fast.
- Email marketing tends to be more cost-effective for nurturing and retention.
- Content marketing boosts long-term organic visibility.
- Social media can build brand presence and engage customers – but results vary widely depending on your audience and content.
- Because digital ad spend remains strong (with social and retail media growing rapidly in 2025), mixing channels wisely – instead of spreading thin – is a smarter move.
Invest in high-quality content – not just quantity
As automation and AI tools proliferate, high-quality, human-led content stands out more than ever. Good content isn’t just about filling space – it’s about building trust, telling your story, and engaging real people.
Many businesses still allocate part of their marketing budget to content creation – blog posts, video, infographics – because it boosts SEO, engages audiences, and sets the stage for long-term growth.
Be transparent with your agency – treat them like partners, not vendors
Communicate your budget, constraints, and expectations clearly. Commit to regular check-ins, reviews and open feedback. A marketing agency that understands your goals becomes part of your team – and helps you stretch every rand or dollar for maximum effect.
What’s typical – and what to budget for
There’s no universal rule, but many businesses allocate between 5% and 10% of annual revenue to marketing. For newer businesses, budgets may be higher – 15-20% – since building a customer base and presence is critical early on.
If that fits your business, combining in-house effort with agency expertise can stretch marketing budgets further and deliver strong results
At Koola Digital, we offer bespoke digital marketing solutions that make effective use of a marketing budget to deliver great results. Learn more about our digital marketing services.
