In an increasingly digital-first world, businesses are reassessing how they allocate marketing budgets. Among the many channels available, Search Engine Optimisation (SEO) has emerged as a key pillar in driving long-term, sustainable growth. But how much of your marketing spend should be invested in SEO? The answer depends on your business size, goals, industry, and overall digital strategy.
The Case for Investing in SEO
SEO isn’t just about ranking higher on Google. It’s about being found by people when they are actively searching for your product or service. Whether you’re a local florist, an e-commerce store, or a B2B software provider, SEO ensures you remain visible in the places that matter most.
Some benefits of SEO include:
- Higher visibility and traffic from search engines
- Improved user experience and website structure
- Increased trust and credibility
- Better long-term ROI compared to paid advertising
- Organic brand growth and awareness
Given these benefits, SEO deserves a meaningful share of your budget.
General Budgeting Guidelines
For most businesses, marketing budgets fall somewhere between 7% to 12% of total revenue. Within that budget, digital marketing can take up around 45% to 60%, depending on the business model. SEO typically accounts for 15% to 25% of the digital marketing budget for a well-rounded strategy.
For example:
- If your annual revenue is $1 million, you might spend $100,000 on marketing.
- Of that $100,000, about $50,000 might go to digital.
- Therefore, a realistic SEO budget could range from $7,500 to $12,500 annually.
However, this is not a one-size-fits-all formula. Startups, local service providers, and e-commerce businesses may require higher initial SEO investment to compete and gain traction.
Factors That Influence SEO Budget Allocation
- Business Goals: If organic traffic is a primary growth driver, SEO should have a higher priority.
- Industry Competitiveness: More competitive industries require a larger investment to rank.
- Current Website Health: A technically weak or under-optimised site may need foundational SEO work.
- Geographic Targeting: For instance, if you’re focused on Local SEO in Sydney, your budget may go toward Google Business Profile optimisation, local link building, and location-specific content.
- In-House vs. Agency Support: Managing SEO in-house may reduce direct costs but requires expertise and time.
Strategic Considerations
Balancing your SEO investment with other digital marketing activities is important. SEO works well alongside PPC, content marketing, social media, and email. Here are some strategic tips:
- Invest more in SEO early on to build domain authority and content.
- Review performance every quarter and adjust budget based on ROI.
- Avoid pausing SEO efforts, even if results are slower to appear; consistency is key.
- Don’t rely solely on paid ads – while they deliver quick wins, SEO sustains growth.
Short-Term vs Long-Term Returns
SEO is not an overnight tactic. It can take 3 to 6 months to begin seeing meaningful results, and longer in competitive niches. However, unlike PPC where traffic stops the moment you pause ads, SEO creates lasting visibility. Therefore, part of your marketing budget should be dedicated to long-term SEO maintenance and content creation, even after you’ve reached initial ranking goals.
Risks of Underfunding SEO
- Poor search rankings and low visibility
- Dependence on expensive paid channels
- Missed traffic from high-intent users
- Reduced credibility compared to competitors
Underinvesting in SEO can lead to short-term savings but long-term losses in visibility and revenue.
How to Get the Most from Your SEO Budget
- Set clear KPIs such as organic traffic growth, keyword rankings, and leads from organic search.
- Work with experienced professionals like an SEO expert in Sydney who understands your market.
- Create high-quality content that targets user intent.
- Ensure technical SEO elements like mobile usability, site speed, and internal linking are optimised.
What Other Businesses Spend
While figures vary, here are some ballpark estimates based on company size:
- Small businesses: $750 to $2,000/month
- Medium businesses: $2,000 to $10,000/month
- Large enterprises: $10,000+/month
If you’re running a small business, explore SMB SEO options that are tailored to limited budgets while still delivering impact. These numbers can also depend on whether SEO is performed in-house, outsourced to a freelancer, or managed by a full-service agency.
Questions Business Owners Often Ask
How do I know if SEO is working? You should see gradual improvements in rankings, organic traffic, lead conversions, and visibility for targeted keywords.
Is SEO still worth it in 2025? Absolutely. SEO is evolving with AI and user behaviour changes, but organic visibility remains a powerful asset.
Can I do SEO on a small budget? Yes, but results will be slower. Prioritise foundational SEO, content updates, and local optimisation.
How does SEO compare to Google Ads? Google Ads provide immediate visibility, but SEO offers compounding returns and lower long-term costs.
Final Thoughts
Allocating the right portion of your marketing budget to SEO is essential for building long-term visibility and trust. While it requires ongoing effort and patience, the returns are well worth it. Whether you’re focusing on Local SEO in Sydney or scaling your business nationally, SEO should be a core component of your digital strategy.
If you’re ready to invest in growth, consider exploring SEO services in Sydney designed to deliver results that align with your goals and budget.
About the Author
Amir Neta is a senior SEO strategist and co-founder of NetiaWeb, with nearly 20 years of experience helping businesses grow through search. He has worked with clients across Australia — including Sydney, Melbourne, Perth, Brisbane, and regional areas — as well as in the USA, UK, and Europe. Specialising in local SEO, AI search readiness, and digital marketing strategy, Amir is passionate about helping businesses improve visibility, generate leads, and achieve long-term ranking success.