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How startups should approach their digital marketing budget

  • Fred Maude
  • Reading time: 4 minutes
  • Published: May 13, 2025

For early-stage startups, digital marketing is one of the most critical (and often most uncertain) investments to get right. With little brand awareness and high growth ambitions, your budget needs to work hard, fast. The key is to be strategic, bold, and realistic about your current stage and long-term goals.

Here’s a practical checklist to help guide your thinking:

1.

Start with Your Growth Ambition

  • Are you aiming for steady traction or rapid market capture?
  • High-growth goals typically demand higher marketing spend – 10–20% of net revenue, or more if VC-backed.
2.

Assess Your Financial Foundation

  • Do your unit economics support aggressive spend? Consider customer acquisition cost (CAC) vs. lifetime value (LTV).
  • Is external investment in place to sustain early losses? If yes, you may have scope to invest ahead of revenue.
3.

Prioritise Brand Awareness and Reach

Focus marketing on education, visibility, and credibility. Choose channels that deliver broad exposure and allow for testing, such as:

  • Influencer marketing
  • Shareable content campaigns
  • Paid social with high reach targeting
4.

Embrace Testing and Iteration

  • Allocate budget for rapid experimentation.
  • Measure, learn, and refine continuously to avoid wasted spend.
5.

Refer Back to Core Budget Principles

For a deeper breakdown of marketing costs (tools, team, media, creative), see our main guide here.

With a thoughtful, structured approach, your early marketing investment can unlock sustainable growth and position your startup for long-term success.

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