07/29/2025
For Baton Rouge businesses, budgeting 7–10% of gross revenue for marketing with 40–60% allocated to digital is a solid starting point in 2025 as digital continues to dominate consumer research and buying decisions. This post outlines what that looks like in real dollars and how to prioritize your spend to drive local growth.
How Much Should Baton Rouge Businesses Budget for Digital Marketing in 2025?
Marketing budgets used to feel like a guessing game. Today, they’re more measurable, but for many Baton Rouge business owners, one key question remains:
How much is enough when it comes to digital marketing in 2025?
We’ve analyzed data, built strategies, and monitored trends for many businesses in the region. Here’s how to create a digital budget that is aligned with your goals, keeping your business competitive without overspending.
Why Digital Marketing Deserves a Bigger Slice of Your Budget
As Baton Rouge continues to grow, so does the competition. Whether you own a law firm, HVAC company, restaurant, retail shop, or medical practice, it’s likely that your next customer is online right now.
Today, customers aren’t just looking for your address; they are reading reviews, watching videos, clicking on ads, and checking your social media before making a decision. Your online presence has become the first impression you make.
When your business consistently appears across various online platforms, you’re already a step ahead of the competition.
How Much Should You Spend?
A common question business owners ask is, “How much should I budget for digital marketing?” or “What percentage of revenue should I allocate to marketing?” The answer isn’t one-size-fits-all – it depends on multiple factors. Here’s a reliable benchmark to consider:
- 3-5% of gross revenue should go to your marketing budget if you’re looking to maintain your market share.
- Allocate 7–10% of gross revenue to the total marketing budget if you’re looking to grow. This ensures that the marketing budget reflects your financial performance.
- Dedicate 40–60% of the marketing budget specifically to digital channels.
Source: https://www.gartner.com/en/marketing/topics/marketing-budget
Three Factors That Influence Your Spend
- Your Business Goals
Are you launching a new service? Trying to dominate in a new parish? Or simply maintaining your market share? Your specific goals will shape your budget.
- Sales Cycle Length
A restaurant can drive foot traffic faster than a home remodeler can close a sale. The longer your sales process (typical in B2B and high-consideration services), the more nurturing you’ll need through SEO, content, retargeting, and consistent engagement.
- Local Competition
Some verticals, such as legal, healthcare, and home services, are highly competitive. It is crucial to understand the average budgets by industry and stay informed about market shifts to make strategic decisions. Expect to spend more to stand out, especially in search!
What Makes Baton Rouge Unique in the Digital Space?
Local connections are essential. Baton Rouge residents value familiar people and brands, ties to the community, and shared values, but often that trust begins online. That’s why the most successful brands in our market pair digital tactics with local credibility and consistent messaging. Here’s how:
- Blend traditional and digital media: A potential customer might hear your ad on Eagle 98.1, see your video ad online later that day, and click your Google ad that night. This approach creates an integrated strategy.
- Run hyper-targeted display ads and retargeting: Reinforce your message where it matters by targeting the right audience, not just anyone.
- Create repeated touchpoints: It often takes more than 7 interactions before someone takes action. Spread those touches across multiple channels to improve conversion.
How to Win:
Success lies in a balanced omni-channel approach. Combine traditional radio and streaming TV with high-intent search and retargeting.
- Capture high-intent searches and build visibility. Reach people when they are actively searching for your service.
- Optimize your website for mobile, speed, and conversions.
- Maintain visibility through strategic display ads and retargeting.
- Nurture existing leads and customers through targeted email marketing.
Tip: Using at least 3 coordinated channels can boost campaign ROI by 24% and triple your customer conversion rates.
Track Your Results
Digital marketing is powerful because it’s measurable. You can track:
- How many people saw your ads
- Which platforms drove the most engagement
- Which campaigns delivered clicks, calls, or conversions
That makes every dollar smarter. You’re not spending on “maybe.” You’re investing with precision. Having a clear marketing plan will allow you to expand your reach and add more customers that will become repeat buyers and referrals.
Not sure if your budget aligns with your goals? Let’s take a look together.
