A commonly used benchmark is 7 to 12% of revenue for growing businesses, though for a small Pune business just starting out, it often makes more sense to set a fixed test budget (₹20,000 to ₹40,000 a month for 3 to 4 months) and measure actual cost per lead before committing to a percentage-based rule that may not fit your margins yet.
We help new clients set that initial test budget realistically as part of our digital marketing onboarding, rather than starting with a number pulled from a generic formula. Our thinking on this is laid out further in why every company needs a digital marketing strategy.
For a genuinely small business, we’d rather set a fixed test budget for 90 days and measure results than commit to an annual percentage-of-revenue plan before we even know what’s working.
Our experts are here to help you get the results you need.
