“How much should we be spending on marketing?” is the question every service business owner asks us — and most agencies dodge. This guide gives you straight answers: real Australian benchmarks by business stage, what each channel actually costs, and how to tell whether your spend is working.
The Short Answer: 5–12% of Revenue
Established service businesses protecting their position typically invest 5–8% of gross revenue in marketing. Businesses in growth mode — chasing new territory, a second crew, or a second location — typically invest 10–15%. A trade business turning over $800k that wants to grow should therefore expect to commit roughly $6,500–$10,000 a month across all channels, not $500 for an occasional boost post. If that number feels impossible, spend less but spend it in fewer places — a budget spread thin across every channel produces nothing measurable in any of them.
What Each Channel Actually Costs in Australia
- Google Ads: clicks for trade and home-service keywords typically run $8–$40; legal, insurance and migration keywords can exceed $100. A workable local campaign usually needs $1,500–$5,000/month in media spend before management.
- SEO: credible retainers in the Australian market run $1,500–$5,000+/month. Anything dramatically cheaper is usually template link-building that does nothing — or harm.
- Website: a conversion-focused service business site typically costs $3,000–$15,000 depending on scale. It is the asset every other dollar depends on.
- Google Business Profile & reviews: the highest-ROI channel for local service businesses, and largely a discipline cost rather than a media cost.
- Social media: valuable proof-of-life and remarketing for service businesses; rarely the primary lead source for trades. Budget it accordingly.
Budget by Stage
- Under $300k revenue: $1,000–$2,500/month. Priority order: Google Business Profile and reviews, a fast site that converts, then a tightly-targeted Google Ads campaign in your best suburb and service.
- $300k–$1M: $2,500–$8,000/month. Add SEO for your money keywords, expand paid coverage, and build the case-study proof that lifts every channel’s conversion rate.
- $1M–$5M: $8,000–$25,000/month. Multi-channel with proper attribution — you should know your cost per lead and cost per booked job by channel, every month.
The Numbers That Matter More Than Spend
Budget is only half the equation. The businesses that win track three numbers: cost per lead (what a phone call or form fill costs you by channel), cost per booked job (leads mean nothing if they don’t convert), and average job value (a $99 service call and a $40,000 renovation justify completely different acquisition costs). If your average job is worth $3,000 in gross profit, paying $150 for a booked job is a bargain. If you don’t know these numbers, that — not more budget — is the first thing to fix.
When You Should NOT Increase Spend
Don’t scale budget into a leaky funnel. If your website doesn’t convert, if calls go unanswered after 3pm, or if you have four Google reviews and your competitor has 200, more ad spend just makes those problems more expensive. Fix conversion first — it’s almost always the cheaper win.
Get a Straight Answer for Your Business
Every industry on our industries page has different job values, seasonality and competition — which is why we start every engagement with a free audit rather than a package price. Call (02) 8357 4899 or book your free audit and consultation and we’ll tell you what we’d spend, where, and what to expect back.