How Much Should I Spend on Digital Marketing?

How Much Should I Spend on Digital Marketing?

Digital marketing is online marketing that advertises business and products through digital channels. About 3.9 billion people use the internet daily, making digital marketing essential to reaching the world. Research shows that 81% of companies use social media marketing, 69% use email marketing (69%), 44 % use Search Engine Optimization (SEO), and 17% use Pay Per Click (PPC)for product promotion. 

Are you confused about how much to spend on digital marketing? 

Here is the effective budget allocation for digital marketing; SEO, PPC, and social media marketing.

  1. Search Engine Optimization (SEO)

Search Engine Optimization (SEO) example

 SEO is a process of optimizing the site to increase its visibility and ranking. It is the most cost-effective way to market your businesses and products. Unresponsive sites, broken links, and lost images are a few SEO problems. To solve this, you need to spend more money to improve SEO. 

Here are two option to solve SEO issues:

  1. Hiring an SEO specialist 

Hire SEO specialist to fix SEO issues

Hire a freelance SEO specialist to fix SEO issues. Freelance SEO specialists charge between Nu. 800 – Nu. 1900 per hour based on their experience. 

  1. Hire a digital marketing company

Approach digital Marketing company 

SEO is a complicated and specialized process, so hire a digital marketing company.Digital Marketing firms work on SEO strategies and practices to accomplish your SEO goals. SEO agencies charge between Nu.1000 – Nu.1500, depending on their rates.

  2. Pay Per Click (PPC)

PPC example

PPC is the paid advertising model where businesses pay a fee every time the audience clicks on their ads. It ensures the company a significant Return on Investment (ROI).

Google, Bing, or social channels are some of the search engines that provide the Pay Per Click advertisement. You can find PPC advertisements above organic search results marked with the word ‘Ad.’

Below is a guide on how much to spend on PPC.

  1. Know your leads

Define your goal

In digital marketing, you generate traffic to your websites and convert website visitors into leads. It is essential to know how many leads you want to generate. 

For example, Blue Dragon Digital Marketing aims to attract 20 new customers per month. 

  1. Know the traffic cost 

Calculate  traffic cost 

In CPC, you pay Google  for every click on ads and costs are based on keyword demand.

For example, Blue dragon bids for the keyword “Best Digital Marketing”, the company may have to pay more, if there are many competitors bidding on the same keyword.

The average cost per click (CPC) = $5

Marketing budget = Nu. 750

Number of website visitors = 150

  1. Website conversion rate

Conversion rate- Number of clicks to your CTA

The conversion rate is the number of leads converted over the total number of the visitors to your site. Example, If Blue Dragon converts 10 leads out of 1000 visitors in a month, 10/1000*100= 1% is the conversion rate.

Pro tips: For B, the conversion rate is 10% and 1-2% for the eCommerce business.

Calculating website  leads

Conversion rate = 10%

Total website leads = (10% (CR) * 150 (no. of website visitors) = 15

  1. Converting leads to customer conversion rate

Making your lead to customer

The customer conversion rate in eCommerce is a number of leads over total customers, and the Consumer conversion rates range from 50% – 90%.

Total new customer

Customer conversion rate = 60%

Total new customer= 60% * 15=9 

Avg cost per clickNu 5
Market budgetNu 750
Expected number of the website visitor150
Website conversion rate10%
Total website leads15
Lead to customer conversion rate60%
Total new customer9

The market budget of Nu 750 with a cost per click of Nu 5 is insufficient to reach the targeted customer of 20 per month. You should spend Nu 950 more to reach your target of 20 new customers. 

C. Social Media Marketing

Social media marketing is a platform to increase brand awareness and conversion. It connects companies to broader audiences through videos, messages, pictures, and podcasts. Social media mainstream includes Instagram, Linked In, Twitter, Pinterest, Youtube, and Tiktok.

How much does advertising on social media cost?

  1. Facebook 

Facebook – The leading social media platform.

Facebook is the leading social media platform for business advertisement. Facebook marketing increases brand awareness and engagement. 

Facebook allows you to precisely target audiences within a short duration. Facebook ads approximately cost Nu 63 per click and Nu 679  for every 1000 impressions (views).

  1. Instagram

Instagram- The effective social media platform.

Instagram is a visual form of marketing, and it is suitable for businesses (B2C). Instagram engages ten times more customers than Facebook. If you choose cost per click (CPC) on Instagram, you have to pay Nu 14 per click and Nu 469 for every 1000 impressions (views).

  1. LinkedIn

LinkedIn- a professional social media networking platform

LinkedIn is a professional networking platform where marketers write articles, post images and videos. There are more than 100,000 articles published on LinkedIn every week, with half a billion users.

LinkedIn is the most expensive marketing platform in social media. The cost per click (CPC) for LinkedIn is approximately Nu 390.6 and the Cost per 1000 impressions Nu 2366.

  1. Twitter

Twitter for business branding

Twitter is a platform that helps your business tweets to go viral quickly, with ads, CTA, and trending hashtags.

Twitter charges based on types of ad you use; 

  1. Promoted Tweets

Example of Promoted tweets – Paid advertising

Promoted tweets are a form of paid advertising on Twitter. It ensures you a greater volume of engagements and customers. Promoted tweets are found on the following placement;

  • Targeted user’s profile
  • Twitter feeds
  • Promoted trends
  • Twitter search

Promoted tweets cost approximately Nu 35 to Nu 140 for every post.

  1. Promoted Accounts

Paid Twitter account

Every time a user follows a promoted account, the promoted account (business) holder pays twitter.

Promoted Accounts approximately cost Nu 140 to Nu 280 for every follower. 

  1. Promoted Trends

Paid Twitter trends.

Promoted trends are an exclusive promotional activity to rank the ads on the top trend list for 24 hours on TwitterIt assures unprecedented scale, reach, frequency, and engagement rate for the business. 

Promoted trends cost $200,000 per day.

   5. Youtube

Youtube- the second largest search engine

Youtube marketing is a platform that promotes businesses and products through videos. YouTube is the world’s second-largest search engine after Google. Youtube is the best marketing platform because you can increase traffic, SEO rankings, and brand awareness.

About 2 billion people log in to youtube every month, but only 9% of businesses make use of YouTube for marketing. 

68% of youtube users confirmed that product reviews on youtube help in purchasing decisions.

Youtube ads cost between Nu 7 to Nu 21 per like. 

6. Pinterest

Pinterest- A photography app

Pinterest is a photography app and is best for advertising your products and brands. Pinterest helps businesses to upload their images and infographics.

Pinterest is the cheapest form of social media marketing. The cost depends on the types of Pinterest ads you use; 

  1. Building brand awareness

Brand awareness via Pinterest

If you use Pinterest to focus on brand awareness, Pinterest charges around Nu 140 to Nu 350 for every 1000 impressions.

  1. Boosting engagement

Engaging customers

Pinterest boosting ads enables businesses to set a goal that encourages audiences to interact with your promoted pin.

Ads run on a Cost per Impression (CPM) model that costs Nu 7 to Nu 105 for every 1000 impressions.

  1. Driving web traffic

                     More web traffic results in more conversions

If you use Pinterest to drive traffic to your website, it costs based on the number of times audiences have accessed your website. 

The ads run on a Cost Per Click (CPC) model costing Nu 7 to Nu 105 per visit to your website. 


 Tiktok- media platform for short videos

Tiktok is a social media platform for short videos that increases brand exposure,  web traffic, and leads. Tiktok is the sixth most popular social media platform globally, with 800 million users in 154 countries.

It costs Nu 700 for every 1000 impressions.


About 3.9 billion people use the internet every day, and it is essential for businesses to consider digital marketing for brand awareness, increase web traffic, generate leads, and conversions. Contact Blue Dragon Digital Marketing for successful business promotion. 

About Blue Dragon Digital Marketing

Blue Dragon Digital marketing is Bhutan’s leader in comprehensive digital marketing. It has an experienced digital marketing team that deals with all channels of online marketing. It is located in Thimphu, Bhutan. The company helps to increase your website visibility and online presence with a simple result-driven approach.

To know more about digital marketing, Follow below links;

Blue Dragon Digital Marketing, Thimphu Bhutan.

Facebook page (

Instagram page (

Website (

Dorji Rinchen

A Specialist

Read about the top influencers in Bhutan

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Leave a comment