How Much Should a Trade Business Spend on Marketing in Australia?
In This Guide
The right marketing budget for an Australian trade business is 5-10% of gross revenue for maintaining your current workload, or 10-15% for aggressive growth. For a solo operator earning $150,000 per year, that works out to $625-1,250 per month. For a business turning over $500,000, it is $2,080-4,170 per month.
But knowing the percentage is just the starting point. The real question is where that money should go and in what order. Spend in the wrong places and you will waste thousands. Spend in the right places and every dollar comes back multiplied. This guide breaks down exactly how to allocate your marketing budget at every stage of business growth. If you want a team that handles the execution, explore our marketing services for trade businesses.
Australian trade businesses that invest 7-10% of revenue in marketing grow 2-3 times faster than those spending under 3%. The gap compounds over time.
The Industry Benchmark: What Successful Trade Businesses Actually Spend
Australian small businesses spend an average of 7-10% of revenue on marketing, according to industry surveys. However, trade businesses tend to significantly under-invest — most spend just 2-3% of revenue, relying heavily on word of mouth and repeat customers. While referrals are valuable, they are unpredictable and impossible to scale on demand.
The trade businesses that grow fastest — the ones that go from one truck to three trucks within two years — are almost always spending at the higher end of the range. They treat marketing as an investment with a measurable return, not a cost to minimise.
Consider the maths: if you spend $3,000 per month on marketing and it generates $15,000 in new revenue, that is a 5x return. Would you invest $3,000 to get $15,000 back? Of course you would. The businesses that understand this equation grow. The ones that see marketing as a "nice to have" stay stuck.
Revenue-Based Budget Calculator:
$150K revenue: $625 – $1,250/month (maintenance) or $1,250 – $1,875/month (growth)
$300K revenue: $1,250 – $2,500/month (maintenance) or $2,500 – $3,750/month (growth)
$500K revenue: $2,080 – $4,170/month (maintenance) or $4,170 – $6,250/month (growth)
$1M revenue: $4,170 – $8,330/month (maintenance) or $8,330 – $12,500/month (growth)
Budget by Business Stage
Your marketing budget and priorities should change as your business grows. What works at $150K revenue is different from what works at $1M. Here is the breakdown by business stage.
Just Starting Out (Under $200K Revenue): $500 – $1,000/Month
At this stage, every dollar counts. Focus on the highest-ROI activities that cost little or nothing upfront: a complete Google Business Profile with photos and regular posts, actively collecting Google reviews after every job, and one paid advertising channel — typically Google Ads on a tight budget targeting your core service and suburb.
Priority spend: Google Business Profile optimisation (free), Google Ads ($500-1,000/month), basic website that converts.
Established (200K – 500K Revenue): $1,000 – $3,000/Month
You have consistent work and a small team. Now it is time to invest in systems that generate leads predictably. A properly optimised website becomes critical — not just "having a website" but one designed to convert visitors into enquiries. Google Ads can be scaled up to cover more services and a wider area.
Priority spend: Google Ads ($1,500-2,500/month), website conversion optimisation, review generation system.
Growing (500K – 1M Revenue): $3,000 – $7,000/Month
You are ready for multi-channel marketing. Google Ads remains your core, but adding Meta (Facebook/Instagram) Ads for brand awareness and retargeting starts to make sense. An AI voice agent ensures you never miss a lead from your increased ad spend. A CRM system helps you track and follow up every enquiry systematically.
Priority spend: Google Ads ($2,500-4,000/month), Meta Ads ($500-1,500/month), AI voice agent, CRM and automation.
Scaling (1M+ Revenue): $7,000 – $15,000+/Month
At this level, you are running a full marketing system. Multiple campaign types across Google and Meta, SEO for long-term organic traffic, content marketing to build authority, remarketing to past customers, and potentially marketing for multiple trade services or locations. The focus shifts to system efficiency — reducing cost per lead while increasing volume.
Priority spend: Google Ads ($4,000-8,000/month), Meta Ads ($1,500-3,000/month), SEO and content ($1,000-2,000/month), AI voice agent and automation, video production.
Where to Spend First (Priority Order)
If you are starting from scratch or rethinking your marketing, here is the exact order you should invest in — ranked by return on investment and impact on lead flow.
Google Business Profile (Free)
The highest-ROI marketing activity for any local service business. Costs nothing. Appears in Google Maps and local search results. Complete every section, add photos weekly, respond to every review, and post updates regularly. This alone can generate 5-15 leads per month for an active profile.
Website That Converts (One-Time Investment)
A fast, mobile-optimised website with clear calls to action, visible phone number, service area pages, and trust signals (reviews, licences, insurance). This is the foundation everything else builds on. Expect to invest $2,000-5,000 for a professional website built to convert. It pays for itself within the first month of running ads.
Google Ads (Ongoing)
Your primary paid lead generation channel. Targets people actively searching for your services. Expect $1,500-5,000 per month in ad spend plus management fees. Well-managed campaigns typically deliver a 3-5x return on ad spend for trade businesses.
AI Voice Agent (Ongoing)
Answers every call you miss, 24 hours a day. Critical because 85% of callers who hit voicemail never call back. If you are spending money on ads to make the phone ring, you need something to answer that phone every single time. Prevents up to 40% of leads from going to competitors.
Meta Ads (Later)
Facebook and Instagram ads work best as a secondary channel — for retargeting website visitors, promoting seasonal offers, and building brand awareness in your area. Lower intent than Google, but cheaper clicks and great for staying top of mind. Add this once your Google Ads are profitable and stable.
SEO & Content Marketing (Long-Term)
Organic search traffic is free once you rank, but it takes 6-12 months of consistent effort to see results. Service area pages, blog content, and technical SEO compound over time. This is a long-term play that reduces your dependence on paid ads. Budget $1,000-2,000 per month for content and SEO once your paid channels are profitable.
What NOT to Spend Money On
Not all marketing channels are created equal. Here are the common money traps that trade businesses fall into — services that sound good in a sales pitch but rarely deliver meaningful results.
Yellow Pages and Print Directories
Less than 5% of Australians use print directories to find local services. The ROI is effectively zero for most trade businesses. Save your money.
Generic Social Media Posting Services
Paying someone $500 per month to post generic quotes and stock photos on your Facebook page does not generate leads. Social media for trade businesses only works when it is authentic (real job photos, real customer stories) or used as a paid advertising channel with targeting.
SEO from Cold-Calling Agencies
If an SEO company cold-calls you promising "page one of Google guaranteed," run. Legitimate SEO takes months of consistent work. Companies that cold-call and promise instant results typically use outdated tactics that can actually get your website penalised by Google.
Lead Sharing Platforms That Send the Same Lead to 5 Businesses
Platforms that sell the same lead to 3-6 competing businesses turn every enquiry into a price war. You end up competing on price rather than quality, your close rate drops to 15-20%, and the cost per acquired job is often higher than running your own exclusive Google Ads campaigns. We break down the full cost comparison in our Hipages vs own marketing analysis.
Calculating Your Marketing ROI
Every dollar you spend on marketing should be trackable back to revenue. Here is how to calculate your return on investment, with real examples for different trade businesses.
The Simple ROI Formula:
Monthly Ad Spend ÷ Leads Generated = Cost Per Lead
Leads × Close Rate × Average Job Value = Revenue
Here is what the numbers look like for different trades:
Example: Plumber
Monthly ad spend: $2,000
Leads generated: 30 (at $67 per lead)
Close rate: 33% (10 jobs booked)
Average job value: $450
Revenue from ads: $4,500
Return: 2.25x ($2,500 profit on $2,000 spend)
Example: Solar Installer
Monthly ad spend: $4,000
Leads generated: 35 (at $114 per lead)
Close rate: 20% (7 jobs booked)
Average job value: $8,000
Revenue from ads: $56,000
Return: 14x ($52,000 profit on $4,000 spend)
Example: Cleaning Business
Monthly ad spend: $1,500
Leads generated: 40 (at $38 per lead)
Close rate: 40% (16 jobs booked)
Average job value: $250
Revenue from ads: $4,000
Return: 2.67x ($2,500 profit on $1,500 spend)
Note that these are conservative estimates. The real ROI is higher when you factor in repeat business from customers acquired through ads, referrals from those customers, and the lifetime value of ongoing service agreements.
Quick Summary: Marketing Budget for Trade Businesses
Spend 5-10% of revenue on marketing (10-15% for growth)
Start with Google Business Profile (free) and a converting website
Google Ads should be your primary paid channel
Avoid Yellow Pages, generic social media posting, and shared lead platforms
Track every lead back to a dollar amount — marketing is an investment, not a cost
Frequently Asked Questions
What percentage of revenue should a trade business spend on marketing?
The industry benchmark for Australian trade and service businesses is 5-10% of gross revenue for maintaining your current workload, or 10-15% for aggressive growth. Most successful trade businesses we work with spend 7-10%. If you're earning $300,000 per year, that translates to $1,750-2,500 per month on marketing. Businesses that spend less than 3% of revenue on marketing tend to rely entirely on word of mouth, which is unpredictable and difficult to scale.
What is the most cost-effective marketing channel for trade businesses?
Google Ads is consistently the most cost-effective paid marketing channel for trade businesses because it targets people who are actively searching for your service right now. For free channels, a well-optimised Google Business Profile is the single highest-ROI activity you can do — it costs nothing and appears in local map results where most people search for local services. After Google Ads, the next priority is website conversion optimisation, because improving your conversion rate makes every other marketing channel more profitable.
Should I do my own marketing or hire an agency?
If you're spending less than $1,000 per month on marketing, managing it yourself can work — focus on Google Business Profile, asking for reviews, and basic social media. Once you're spending $1,500+ per month on advertising, hiring a specialist typically pays for itself through better results. A skilled Google Ads manager can reduce your cost per lead by 30-50% compared to self-managed campaigns, and you get your time back to focus on billable work. The key is finding an agency that specialises in trade and service businesses, not a generalist.
How long does it take to see ROI from marketing?
Google Ads can generate leads within the first week, with campaigns typically reaching optimal performance after 4-8 weeks of data and optimisation. SEO takes 6-12 months to show meaningful results but compounds over time. A new website usually shows conversion improvements within the first month. The important thing is to commit to at least 3 months — trade businesses that stop and start their marketing repeatedly spend the same amount but get significantly worse results than those who run campaigns consistently.
Related Reading
Google Ads for Trade Businesses: The Complete Australian Guide
Cost per click by trade, campaign types, budget guidelines, and the 5 mistakes that waste your ad spend.
Facebook Ads for Trade Businesses in 2026
When to add Facebook Ads to your marketing mix and how to allocate budget between Google and Meta.
Hipages vs Running Your Own Marketing
A cost-per-lead comparison between lead platforms and owning your own marketing channels.
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