On this page
Key takeaways
A social media budget for a business turning over £1m to £5m usually runs from £1,500 to £6,000 a month, sometimes more. At this size spend covers a team or agency, several platforms, regular video and a multi-campaign ad budget, and it should be reported to the board against sales.
- £1,500–£6,000 a month is the usual total at £1m–£5m turnover.
- £1,000–£3,000 a month in ads across one or two platforms is common.
- A specialist team or agency usually beats one generalist hire.
- Report spend against enquiries and revenue to the board quarterly.
Want a costed plan for your business? Message us on WhatsApp.
Chat on WhatsApp →How is the monthly figure worked out?
Illustrative sum: a £2 million business putting 5% into marketing has £100,000 a year. Giving social media 25% leaves £25,000, about £2,080 a month. A consumer brand that wins most customers through social could give 40%, about £3,330 a month. Larger firms often spend a lower share of revenue but more in pounds.
Should you build a team or use an agency?
One in-house generalist cannot usually cover strategy, design, video, ads and reporting well. Many firms in this band keep a marketing lead in-house and buy specialist production and paid social from an agency. Compare the full cost of a hire, including employer costs, with a scoped service.
Want a team or agency comparison for your firm? Message us on WhatsApp and we will discuss your requirements.
Chat on WhatsApp →How should the ad budget be spread?
Most firms in this band run ads on one or two platforms, with campaigns for each main service, retargeting and recruitment. Keep each campaign above the level it needs to learn, which means fewer, better-funded campaigns rather than many small ones. Recruitment ads deserve their own budget line.
What should the board see?
A one-page quarterly report: total social spend by line, enquiries and sales attributed, cost per enquiry, and the next quarter's plan. Boards lose confidence in social media when reports show reach and likes but no link to revenue. Agree the measures before the year starts.
What does this look like in practice?
A pattern we see: a growing firm adds platforms and campaigns faster than it adds people, so budgets spread thin and nobody can say what works. Consolidating to fewer, better-funded campaigns with one report usually gives the board a clear answer within a quarter.
Larger SME checklist
- Set an annual social budget from revenue and growth goals.
- Decide what stays in-house and what is bought in.
- Fund fewer campaigns properly rather than many thinly.
- Give recruitment ads a separate budget line.
- Report spend against enquiries and revenue each quarter.
Next step
Draft the one-page board report with last quarter's numbers. The gaps you find are the measures to put in place before setting next year's budget.
Message us on WhatsApp with your draft, or book a 30-minute consultation.
Chat on WhatsApp →Sources and further reading
- Employee earnings in the UK (Annual Survey of Hours and Earnings) · Office for National Statistics
- Get started with attribution · Google Analytics Help
Frequently asked questions
How much should a £2m business spend on social media?
Around £1,500–£3,500 a month in total is a common planning range for a £2 million business, including people, production and ads. Consumer brands that rely on social for most new customers sit higher; B2B firms that win work through relationships and search usually sit lower.
Do larger businesses spend a smaller percentage on marketing?
Often, yes. Established firms with repeat customers and strong referrals tend to spend a lower share of revenue, though more in pounds. Fast-growing firms and those entering new markets spend a higher share. The right figure follows your growth goal, not your size alone.
How do I report social media spend to my board?
Use one page each quarter: spend by line, enquiries and sales linked to social media, cost per enquiry, and the plan for next quarter. Agree the measures and attribution rules in advance, so the discussion is about results rather than definitions.
Written by
Global Bridge Labs (GBL) is a UK–Sri Lanka partner for social media, websites and BPO. Everything here comes from client delivery, not theory.
