According to a recent analysis that we did among Singaporean small- and medium-enterprises engaged in digital marketing, the typical spend on digital marketing is between $14,000 and $25,000 per month. In this article we share our findings and insights about the cost of digital marketing for Singaporean SMEs.
A typical Singaporean SME spends between S$14,000-25,000/month on digital marketing
We looked into the main buckets of the spending of Digital Marketing for SMEs and learned that online advertisement, social media, and content creation are the top three buckets—consistent with our general findings on the State of Digital Among Singaporean SMEs report.
Here are more details in each items small- and medium-enterprises engaged in digital marketing spend on.
These figures are averages across SMEs with B2B and B2C models. If you think that your B2B SME does not need digital marketing, think again (and check out our article about the top reasons why a B2B SME needs digital marketing).
There is a high variability between companies when it comes to one specific items: marketing platforms. SMEs are all over the spectrum, with some not having a marketing platform at all; others using one via a third-party agency which fully manages online marketing for them; others using free platforms; and the more sophisticated ones spending well north of $4,000/month for automation and personalisation. In general, there are plenty of options to choose from (and to help you, here we made a list of all marketing automation solutions we could find)
Content production is also another are significant and with some variability. However the constant factor is that all SMEs engaged online have significant spending, typically with an agency of a freelancer at the end of the spectrum, or with their own dedicated content manager at the opposite end.
The are two more items worth mentioning:
- Marketing Plan: for a company with a well-defined marketing strategy already in place, spending $2,000/month for planning a short-term project is appropriate (unless it's an experiment in something completely new).
- Website and SEO: while there are vendors asking for much more (or less), $1,000/month for SEOs projects in Singapore is appropriate for any company that does this consistently. However, you should expect to pay more, if you have neglected this area and now you need to catch up.
The overall monthly spending of $14,000-25,000 in digital marketing results in a cost per lead of about $150. It's hard to look at this metric as an average however, given the huge difference in cost per leads that make sense for each business, given the ability to convert that lead into a customer and the lifetime value of their customers.
Inbound Marketing has proven more effective for SMEs than outbound
Inbound Marketing has proven more effective for small- and medium-enterprises than outbound. According to HubSpot:
“Inbound marketing enables you to build a true funnel that allows you to build a predictable pipeline for growth. Consider the following:
The Content Marketing Institute reports that 80% of decision-makers prefer to get company information in a series of articles versus in an advertisement (and by extension a sales call).
Inbound leads cost 60% less than outbound leads. (source: State of Marketing Report)
Companies that excel at lead nurturing (a core part of the methodology) generate 50% more sales ready leads at 33% lower costs (source: Forrester Research).
Nurtured leads make 47% larger purchases than non-nurtured leads (source: The Annuitas Group)
SEO driven leads have a have a 14.6% close rate, while outbound leads have a 1.7% closing rate. (source: Search Engine World)”