How Much Should You Spend to Get More Customers?

Stop Guessing and Start Growing

I’ve sat down with hundreds of business owners across Brisbane—from electricians in Coorparoo to boutique law firms in the CBD. Almost every single one asks me the same two questions: "How much should I be spending on marketing?" and "Am I getting ripped off?"

Most of the advice you find online is written by people who have never had to worry about making payroll on a Friday afternoon. They talk about "brand awareness" and "engagement metrics." But if you’re running a business, you don’t take "likes" to the bank. You need phone calls, booked jobs, and cash in the door.

In this guide, I’m going to break down exactly what Australian small businesses are spending in 2024 and 2025. No fluff, no jargon—just the numbers you need to decide how much to invest to get the results you want.

The Real Cost of Doing Business in Australia

Let’s be blunt: marketing has become more expensive. If a "guru" tells you that you can grow a seven-figure business on $500 a month in Facebook ads, they are lying to you. Between the rising cost of living in South East Queensland and the sheer number of businesses competing for attention, the price of getting a new customer has gone up.

However, it’s not all bad news. While costs are up, the tools we use to track what makes money have become much sharper. You no longer have to throw money at the wall and hope it sticks. You can see exactly which dollar brought in which customer.

The "Rule of Thumb" for Small Business Budgets

If you want a quick benchmark, most successful Australian small businesses spend between 5% and 10% of their gross revenue on marketing.

If you’re in maintenance mode: (You have enough work but want to keep the pipeline steady), aim for 5%. If you’re in growth mode: (You’ve just hired a new crew or opened a second location), you need to look at 10% to 15%.

If you’re turning over $1 million a year, spending $50,000 to $100,000 annually ($4k to $8k a month) is the standard. If that number makes you wince, remember: this isn't a "cost" like your electricity bill. It’s an investment. If you spend $5,000 and it brings in $25,000 of work, you’d do that every single day, wouldn't you?

Breaking Down the Costs: Where is the Money Going?

Not all marketing is created equal. Here is how the most successful Brisbane businesses split their spend.

1. Google Ads (The Quickest Way to Get the Phone Ringing)

For most tradies and service businesses (plumbers, lawyers, dentists), Google Ads is the heavyweight champion. Why? Because when someone’s hot water system bursts in Chermside at 10:00 PM, they don't go to Instagram to look at pretty pictures. They go to Google and search "emergency plumber near me."

You are paying to be the first person they call.

The Trap: Many owners try to do this themselves. Google makes it look easy to click a few buttons, but they are designed to take your money. I’ve seen businesses waste thousands on "broad" keywords that bring in people looking for jobs rather than people looking to hire. The Reality: You should expect to pay a professional a flat fee to manage this for you. If a company takes a percentage of your ad spend, be careful—they have an incentive for you to spend more, not necessarily to get better results.

2. Local SEO (The Long-Term Asset)

This is about making sure your business shows up in the "Map Pack" and the organic results when people search for your services. It’s a slower burn, but it’s the most valuable thing you can own.

I’ve seen a landscaper in the Redlands stop paying for ads entirely after 18 months because their organic ranking was bringing in more work than they could handle.

The Waste of Money: Avoid anyone promising "#1 rankings on Google in 30 days." It’s a scam. What Works: Real SEO is about making sure your website works on phones, loads fast, and has actual helpful information about your services and the Brisbane suburbs you serve.

3. Social Media (Facebook & Instagram)

Social media is great for "visual" businesses—builders, renovators, hair salons, or cafes. It’s less about immediate "I need this now" and more about "I want that eventually."

If you’re a commercial glazier, Facebook might be a waste of your time. If you’re a kitchen renovator in Ascot, it’s your best friend.

How to Know if Your Spend is Working

This is where most business owners get frustrated. They see money going out of the bank account but aren't sure if the new customers are coming from the ads, the signage on the truck, or word of mouth.

You need to trace the path of your customers. Every time the phone rings, your team should be asking, "How did you hear about us?" But beyond that, you need digital tracking.

If your marketing person can’t tell you exactly how many phone calls came from your ads last month, fire them. Seriously. In 2024, there is no excuse for not knowing your numbers. You need to see which ads make profit so you can do more of what works and cut the rubbish.

Three Common Ways Brisbane Businesses Waste Money

I see these mistakes every week. If you’re doing any of these, stop.

1. The "Set and Forget" Website

2. High-End Branding Too Early

3. Directory Listings

Expert Predictions for 2025

What’s coming next for Queensland business owners?

1. Video is Non-Negotiable: You don't need a film crew. A 30-second clip of you on a job site explaining a problem you just fixed is worth more than 1,000 words of marketing speak. It builds trust. People buy from people they know, like, and trust. 2. Google Local Services Ads (LSAs): Keep an eye out for these. They are the ads that say "Google Guaranteed" at the very top. They charge you per lead (phone call) rather than per click. For tradies, this will be the biggest game-changer in the next 12 months. 3. Speed Wins: We are becoming more impatient. If you don't answer the phone or reply to a web enquiry within 10 minutes, that customer has already called your competitor. Marketing gets them to the door; your speed of response closes the deal.

What Should You Do First?

If you’re feeling overwhelmed, here is the 3-step plan I’d give to a mate:

1. Fix your Google Business Profile: It’s free. Get photos of your work up there, list your actual hours, and for heaven's sake, ask your happy customers for reviews. This is the highest ROI activity you can do. 2. Audit your current spend: Look at your bank statement. If you’re paying for "SEO" or "Ads" but your phone isn't ringing more than it was last year, something is wrong. 3. Set a realistic budget: Don't try to "test" Google Ads with $200. You’ll just lose $200. Commit to a proper budget for three months to get real data.

The Bottom Line

Marketing isn't a dark art, and it shouldn't be a mystery. It’s a math problem. You spend X to get Y. If Y is bigger than X plus your overheads, you win.

At Local Marketing Group, we don't care about "impressions" or "reach." We care about your bank balance. We help Brisbane businesses stop guessing and start growing by focusing on the only thing that matters: getting more customers.

Ready to stop wasting money and start getting more calls? Contact Local Marketing Group today and let’s look at your numbers. No jargon, just results.