Skip to main content

The SEO Sweet Spot: What Percentage of Your Marketing Budget Should Go to SEO?

Image
By

Discover how to optimize your SEO spend for maximum results, whether you manage it in-house or outsource it to an expert agency.

The SEO Sweet Spot: What Percentage of Your Marketing Budget Should Go to SEO?

Let’s face it—SEO can feel like a never-ending puzzle. You know it’s crucial, but how much should you actually spend to get meaningful results? As someone who built a digital marketing agency from the ground up and now advises companies as a digital marketing consultant, I’ve seen businesses hit the sweet spot—and others overspend or underspend on SEO to their detriment. So, how do you determine the perfect investment?

How Much Should You Spend on SEO?

While there’s no universal answer, industry guidelines suggest allocating 10-20% of your overall marketing budget to SEO. This figure might fluctuate based on your competition, industry, and current web presence. For example, during my time running a digital marketing agency, we typically devoted 15% of client budgets to SEO, recognizing that organic search traffic delivers the best long-term ROI.

For smaller companies just starting, you may spend around 5-10%, focusing on key foundational elements like keyword research and technical SEO. For larger enterprises, with more content to manage, that number could lean toward 20% to cover advanced tactics like link building and ongoing content optimization.

Pro Tip:

  • Treat SEO as a long-term investment—the results compound over time, but ongoing work is required to stay ahead of competitors. If you treat SEO like a one-time project, you'll lose momentum fast.

Where Should Your SEO Dollars Go?

SEO isn’t a one-size-fits-all game. Breaking your budget down into specific categories ensures you’re not just throwing money at the wall and hoping it sticks. Here's how to distribute your SEO budget smartly.

  • Keyword Research (10-15%): This is the foundation. Without solid keyword research, all other efforts are misguided. Use tools like Ahrefs and Moz to identify high-volume, low-competition keywords relevant to your niche. When I worked with SaaS companies, focusing on targeted keyword clusters consistently delivered a spike in organic traffic.
  • On-Page Optimization (20-30%): This includes everything from meta tags to URL structuring and internal linking. The content on each page needs to be optimized for search engines and users alike. A simple refresh of outdated content or fine-tuning on-page SEO can generate remarkable results. In fact, one of my clients saw a 50% increase in organic traffic just by enhancing their on-page structure and content quality.
  • Content Creation and Updates (20-40%): Creating valuable content that matches search intent is non-negotiable. Use Google Analytics and SEMrush to track which content works best and focus on creating more of it. Repurpose existing content, like turning blog posts into infographics or videos, to squeeze more value from your investment.
  • Link Building (30-40%): High-authority backlinks remain one of the most powerful ways to boost SEO rankings. However, it’s time-consuming. Many businesses find it’s worth outsourcing this piece to an agency that specializes in link-building relationships. One high-quality backlink from a relevant site often outweighs dozens of low-quality ones.

Pro Tip:

  • Focus on acquiring high-authority backlinks from trusted sites in your niche. Don’t get trapped into purchasing low-quality links, which can harm your SEO instead of helping.

In-House SEO vs. Outsourcing: What’s More Cost-Effective?

Having managed SEO both in-house and as an outsourced solution and as an SEO consultant, I’ve seen firsthand that the decision comes down to the size of your company and the scale of your SEO goals.

In-House SEO

  • For larger companies with multiple product lines or services that require constant SEO attention, building an in-house team can make sense. You have complete control over the strategy, the flexibility to respond quickly to changes, and the ability to align SEO with broader business objectives. However, the costs quickly add up. Between hiring skilled SEO specialists, continuous training, and paying for tools and resources, managing an in-house team can become a significant financial commitment. Plus, you’ll need to ensure your team stays up-to-date with the latest SEO best practices and algorithm changes, which can be a challenge.

Outsourcing SEO

  • For small to mid-sized businesses, or for those that don’t have deep SEO expertise in-house, outsourcing is often the more cost-effective solution. An experienced SEO agency brings a wealth of knowledge, established processes, and cutting-edge tools, all without the overhead of building an internal team. They can ramp up quickly, avoid the trial-and-error phase, and start delivering results faster. When I ran my digital marketing agency, many of our clients found that outsourcing to us was more efficient and cost-effective than maintaining an in-house SEO team. We were able to offer better results through focused expertise, all while saving them time and resources.

Pro Tip: Outsourcing Can Provide Fast, Cost-Effective Results

  • If you don’t have in-house SEO experts, outsourcing is a smart move. Not only does it free up your internal team, but it also gives you access to a deep pool of specialized knowledge and resources. SEO agencies bring connections for link building, the latest tools, and the ability to stay on top of algorithm changes—saving you time, money, and headaches. And for those times when your SEO efforts hit a plateau, hiring a consultant can offer the quick, tactical push you need to drive meaningful results without the long-term cost of full-time hires.
  • Think of an SEO consultant as your “secret weapon.” They quickly diagnose issues, spot opportunities you might have missed, and implement high-impact fixes that re-energize your SEO performance. Whether for short-term projects or when you need to overcome stagnation, a consultant can make a big difference.

Measuring ROI: How to Know if Your SEO Investment is Paying Off

SEO requires consistent measurement and refinement. Tools like Google Analytics 4, Ahrefs, and SEMrush are critical for tracking key metrics such as organic traffic growth, conversion rates, and keyword rankings.

One of the most important metrics I track for my clients is customer acquisition cost (CAC) via organic channels. A well-optimized SEO strategy will lower CAC over time as organic traffic increases. It’s important to review and adjust your SEO efforts quarterly to ensure you’re spending in areas that drive results.

Pro Tip:

  • Use SEO dashboards like those in Looker Studio (formally, Google Data Studio) to track performance metrics in real-time, ensuring you can make adjustments as needed.

Final Thoughts: SEO is a Long Game—Invest Wisely

When done right, SEO is the gift that keeps on giving. Allocating 10-20% of your marketing budget to SEO efforts will improve your rankings and bring long-term results that other marketing channels can’t match. Whether you manage SEO in-house or outsource it to an experienced agency, investing wisely in the right areas will make all the difference.

FREE CONSULTATION

Not sure how much you should spend on SEO or where to allocate your budget? Contact me today to create a custom SEO strategy that drives lasting results and maximizes your ROI.

Location: United States

Comments

Post a Comment

Popular posts from this blog

Unlocking Profit-Driven Growth: A New Digital Marketing Strategy

By
Unlock high-growth marketing strategies to attract, convert, and retain customers—profitably. Opening the Floodgates: How to Drive New Business Growth (Without Draining the Budget) Every digital marketer has been pressured to hit ambitious growth targets on a leaner budget. The challenge? Achieving more with less while keeping profitability intact . Imagine if you had the ultimate toolkit: innovative strategies , a fresh approach to audience targeting, and a roadmap for maximizing ROI . Here’s how to leverage your budget like a pro and supercharge your business growth without breaking the bank. Buckle up for a step-by-step guide packed with insights I’ve gathered, from scaling my digital marketing agency to seven figures and my experience as a digital marketing consultant . Let’s dive into actionable strategies for sustainable, profitable growth. Dig Deeper: Audience Segmentation That Drives Conversions Forget about the “target everyone” approach. Effective segmentation is more than...
Post a Comment
Read more

Conquering the Shift: How to Thrive Amid Social Media’s Quality Decline

By
Future-proof your digital strategy by embracing new channels and creating authentic connections as social media quality dips. Social Media’s Midlife Crisis and How to Avoid Going Down with It Imagine your favorite coffee shop only uses decaf beans and serves every cup lukewarm. You’d probably find a new spot faster than you can say, “Double-shot espresso!” That’s how many consumers now feel about social media—what once felt vibrant and valuable has turned stale, overly commercial, and repetitive. In fact, by 2025 , nearly half of users are expected to spend less time on major platforms due to these issues. For digital marketers, this is both a warning and a golden opportunity. In this post, I’ll explore how savvy digital marketers can pivot to thrive in a world where traditional social media is losing its appeal. Drawing from years of experience growing a digital agency into a multi-million-dollar business, I’ll share effective strategies to keep your audience engaged, loyal, and r...
Post a Comment
Read more

Unravel Discord: Strategies to Build a Thriving Brand Community

By
Master Discord to build loyal, engaged communities around your brand using these fresh strategies. Leveraging Discord for Digital Marketing: Unique Strategies for Building Brand Loyalty Discord may be the "new kid" in the digital marketing toolbox, but it’s far from a typical social platform . Imagine a virtual clubhouse where your brand’s most dedicated fans can gather, swap tips, share stories, and build loyalty with every interaction. However, many digital marketers struggle to tap into Discord’s potential. Today, I’m here to bridge that gap, sharing strategies that go beyond the standard “create a server” advice. As someone who’s built a digital marketing agency from the ground up, I’ll provide tactics to help you maximize Discord’s potential and foster a vibrant community around your brand. Why Discord? Understanding the Platform’s Unique Appeal So, why should digital marketers embrace Discord ? Originally a gamer hub, Discord has transformed into a versatile communit...
Post a Comment
Read more