If you're trying to grow your business, one of the hardest decisions is knowing how much to invest in marketing. Spend too little and growth stalls. Spend too much with the wrong agency and ROI disappears.
You will also face two options. You can either hire internal marketing resources or engage with one or more digital marketing agencies.
To help you assess each option and overall marketing investment, we'll explore the typical budgets companies dedicate to digital marketing and the average price of a digital marketing agency in New Zealand.
How much should you budget for marketing?
According to HubSpot, the average company spends 11.4% of its overall budget on marketing. National averages vary with Australia sitting at around 10-13% from multiple sources, and New Zealand averages sitting slightly lower at 5-12%.
As a general rule, experts suggest that companies should spend 9.4% of their revenue on marketing. The recommended amount is industry-specific but generally, B2B companies should spend between 2% and 5% of their revenue on marketing, while B2C companies should invest between 5% and 10%.
Businesses are also shifting their priorities in where that marketing budget is spent, recognising the biggest return on investment is now coming from digital channels like social media, email marketing, online advertising, and content marketing. As a result, many are also looking for digital marketing agencies to support them.
How much does a digital marketing agency cost in New Zealand?
Marketing agencies typically charge in two ways — on a retainer basis or as a lump sum for each project. A per-project payment structure means the agency will provide a fixed-price quote based on the required time, tools, and skills. With a retainer payment structure, your agency will provide an agreed service or a set number of monthly hours, aligned with an agreed monthly fee.
In New Zealand, we’ve seen a vast range of prices for digital marketing, from $250 per month to well over $10,000 a month. At each price point, the quantity and quality of inclusions vary - you’ll likely be aware in your industry that low cost doesn’t always equal low quality, but there are often compromises somewhere.
What factors influence marketing costs?
The cost of digital marketing services can vary widely. Here are the key factors that may influence the cost of digital marketing services.
How can scope of services affect marketing agency costs?
Digital marketing services may include search engine optimisation (SEO), AI engine optimisation (AEO), Google Ads, social media management, content creation, email marketing, influencer marketing, and more. Some agencies offer additional services which will typically be costed separately from your monthly rate.
For example, at Vanguard 86, we offer fixed-price managed marketing including scalable and repeatable monthly marketing. This includes creating and launching emails, blogs, social media posts, and lead-generation activities. As needed, we also offer website development, one-on-one coaching, strategy days, and additional services.
Does agency experience affect marketing costs?
Agency experience affects pricing because senior strategists, SEO specialists, PPC managers, designers, and developers usually command higher salaries than junior generalists.
The reputation of the digital marketing agency will also play a role in their pricing. A more experienced agency with a slew of awards may charge a higher rate due to their industry recognition and established expertise.
Can location affect marketing agency costs?
Marketing agency prices can vary based on the agency’s location, particularly in large cities where overheads are higher and there is more demand. For example, a digital marketing agency in Auckland will typically charge much higher rates than a regional digital marketing agency.
Can business goals impact marketing agency prices?
Your business goals and the complexity of your campaigns may impact the cost of your marketing, depending on how much time is required. For example, a comprehensive marketing campaign for a new product launch may require more resources and planning than a simple one-off social media campaign.
How much should you spend on digital advertising?
Some marketing campaigns involve paid advertising platforms like Google Ads or Facebook Ads. The costs for these platforms can vary, based on the platforms and your allocated budget.
If you’re just starting, Google recommends starting with a daily ad spend between $10 and $50. On average, businesses allocate approximately $9,000 to $10,000 to advertising campaigns.
It is also worth noting that the average return on investment for Google Ads is 800%. However, you will need ongoing Google ads management from an experienced specialist to achieve these results and maximise profitability.
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Marketing agency vs in-house marketing
Deciding whether to work with an agency or keep your marketing in-house is a significant decision — often called insourcing vs outsourcing. Insourcing is when you hire the required marketing skills within your business, including upskilling existing team members, hiring for a new position, or employing contractors.
According to Payscale, the median cost of a digital marketing manager in New Zealand is NZD 81k. On top of salary, you’ll also need to budget for the cost-to-hire, onboarding, training, and workstation costs. If we add in the costs of hiring two more people to fill your needs, you can expect to invest over NZD 200k in annual salaries just to get off the ground.
It’s incredibly rare for a digital marketing manager to be an expert in all things digital. Many are more strategic, while some are more tactical. You likely need someone who can come up with the strategy, and implement it. Often specialisations don’t cross well, in that a numbers-driven analyst or PPC specialist might not be good at designing a high-converting web page or email. Hence why you’ll need a team to implement mid-level digital marketing well.
On the other hand, outsourcing involves an external partner who completes your marketing on your behalf, including freelancers or agencies. When outsourcing your marketing to an agency, you gain a wealth of shared knowledge and skill sets. You can even use an agency to augment your internal marketing resources, filling their skill gaps so you can cover more areas of digital marketing.
In terms of cost, agencies often provide a more cost-effective solution, allowing you to access a team of marketing specialists without the overhead costs of maintaining a full-time staff member. For more information, read our full article about the outsourcing vs insourcing comparison.
Discover your growth opportunities with Vanguard 86's Compounding Marketing Funnel Sprint
If you're wondering how much your building company should invest in marketing, the first step is understanding where your biggest opportunities for growth are.
The Compounding Marketing Funnel Sprint is a strategic workshop designed to help residential and construction businesses identify the marketing activities that will generate the greatest long-term return. Rather than recommending tactics in isolation, we map your entire customer acquisition journey — from awareness through to enquiries and signed projects — to uncover where leads are leaking and where your marketing can compound over time.
During the sprint, we'll help you:
- Audit your current marketing funnel and identify growth bottlenecks.
- Benchmark your marketing investment against your business goals.
- Prioritise the highest-impact opportunities across SEO, Google Ads, content, website conversion, CRM, and automation.
- Build a practical roadmap that compounds results rather than relying on short-term campaigns.
- Understand which initiatives should come first to maximise ROI and marketing efficiency.
Whether you're spending $3,000 or $15,000 per month, the goal is the same: invest your marketing budget where it will deliver the greatest commercial impact.
If you'd like a tailored recommendation for your business, our Compounding Marketing Funnel Sprint will show you exactly where to focus first — and why.
Vanguard 86 has worked with residential construction businesses throughout New Zealand, managing Google Advertising, SEO, AEO, websites, CRM automation and content marketing campaigns.
For more information and pricing, or to discuss the best option for your business, book a meeting with one of our digital marketing specialists. Alternatively, you can browse the full range of services on our website.
