1. Begin With Industry Research
Let’s cut to the chase—if you’re looking for a magic advertising number, I hate to break it to you, but there’s no wizard behind the curtain. Most small business owners (myself very much included) have sat at the kitchen table googling, “How much are my competitors spending on Google Ads—should I even bother?” Been there, obsessively refreshed that analytics dashboard. Before you whip out your credit card, let me show you the lay of the land…
Typical Spending on Websites and Online Marketing in Canada
Canada, eh? Grab yourself a Timmies, because these numbers might surprise you. For a small business raking in under two million loonies a year, the average total spend on websites and online marketing—spoiler alert—is not chump change.
Here’s a quick peek at how companies break down the digital dollars, based on numbers I swiped from one of those industry report PDFs nobody actually reads from cover to cover (but hey, I took that spreadsheet bullet for you):
| Annual Sales | Website Spend | Online Marketing | Total |
| Less than $2M | $19,652 | $14,301 | $33,953 |
| $2M – $10M | $37,721 | $38,396 | $76,117 |
| $10M+ | $142,197 | $92,488 | $234,685 |
Before you faint into your coffee—NO, you don’t have to cough up 20 grand out of the gate. These stats just show what’s typical on average. There’s a gigantic range. You might skip costly custom sites and use Shopify or Squarespace for a fraction (been there), or stretch your budget further using Canva for DIY marketing graphics.
A real story for you: when I ran digital ads for my buddy’s bakery in Waterloo, we squeezed every penny—$1500 was our “big splurge” quarter, and we still reached hundreds of local cookie monsters. Point is, averages are guidelines, not ironclad rules.
Quick tip: When AI tools started flooding the market, those report numbers started to shift faster than the Leafs’ lineup. With smart, generative content tools (think Jasper or even Canva Magic Write), you might not need to pay as much for fancy marketing material or endless social posts. BUT—and this is a big but—AI’s not your marketing fairy godmother. I’ve seen businesses automate themselves into bland, robotic oblivion. Always bring your personality. People can spot phony “formula” content a mile away.
Here’s a little snack for thought: do you want your site and ads to feel like the local shop—a place people remember by smell and name—or like an airport vending machine (functional, but totally forgettable)? I vote for the one that smells like cookies. You in?
If you’re reading this with a tight budget and full plate, don’t panic. Plenty of small businesses carve out a starting budget well below those industry averages (sometimes just a few hundred to a few thousand dollars a year), especially in places like Atlantic Canada where community marketing and word-of-mouth still rule the roost.
So, before you dive into dollar decisions, ask yourself:
- How important is competing online versus in-person?
- Are you a corner café or an online-only tech wizard?
- Would you rather go “all-in” on a polished storefront (think: wow website) or test digital ads first?
Make your first move “industry research,” but trust your gut. I started small and tweaked my budget as I went, and honestly… that took me farther than following some faceless “average.”
Your next step: snoop on local competitors with SimilarWeb, ask your entrepreneurial friends, or—my favorite—just ask your customers, “Where did you hear about us?” Sometimes, the best research is a quick chat over the cash register.
Ready for the next piece? Grab your calculator—this is where we get crafty with budget tricks.
2. Establish Clear Objectives
Alright… Let’s kick off with a dose of honesty—if you’re anything like me when I launched my own little online bakery (RIP gluten-free brownies, you had a good run), you probably just wanted your ads to work some Harry Potter-level magic and poof… instant customers. Truth is, magic wands are still not available on Amazon Prime. So instead, you need real-deal objectives before you drop a single dollar on advertising.
Picture this: You’re standing in front of your shop window, eyeing the dog-walking traffic, wondering, “Am I trying to get more folks walking in, or do I want that phone to buzz off the hook?” That’s your first big game-changer. Not all advertising is equal, and spoiler: what works for Tim’s Lawn Mowers won’t necessarily skyrocket Tina’s Cupcake Cabana to viral fame.
Here’s how I break down objectives in the real world—no textbook jargon, just stuff I’ve personally wrestled with:
What’s Your Win?:
- Are you looking for more website traffic? (I remember the time I thought doubling clicks meant doubling sales…facepalm Not quite. It helps, but it’s not everything.)
- Do you want actual walk-ins? For my bakery, I stuck a QR code on flyers at the local yoga studio… suddenly customers showed up who thought “downward dog” was just a yoga pose, not a treat.
- Or—are you chasing good old phone calls and DMs? If appointment books are your bread and butter (pun so intended), focus there.
Quick Tip Table — Major Small Biz Objectives
| Goal Type | Example Activity | How You Know It’s Working |
| Boost awareness | Run Insta or Facebook display ads | Impressions & follows go up |
| Drive sales | Flash sales on Shopify, Google Shopping ads | Orders and carts (not just views) |
| Get traffic | Promote URLs in community Facebook Groups | Website visits, unique clicks |
| Collect leads | Freebie download for plumber quotes | Email signups, phone inquiries |
Seriously, pick the one thing that actually moves the needle for your biz. I learned the hard way that vague goals like “more buzz” just lead to buzzing in my head—not in sales.
Another word to the wise… if you can measure it, you can celebrate it (even if you have to toss your own confetti). I suggest writing down the target—like “I want 15 new bookings this month” or “Triple my newsletter list by Halloween.” It sounds basic but it’s a north star when you’re three weeks into an ad campaign and wondering if anyone out there is noticing.
If you’re in a tight-knit town, objectives might look different than the city hustle—sometimes your target is just to get Bob the Barber to chat about your services at the next Chamber of Commerce pancake breakfast. Hey, word-of-mouth is marketing, people.
Troubleshooting: Common “Oops” Moments
- Assuming more eyeballs = more business (yeah, don’t sweat it, happened to me too)
- Chasing every shiny social network without a plan
- Setting goals you can’t actually track (“be more famous” isn’t a metric—unless your Grandma’s keeping a scrapbook)
This might sound a bit cheesy, but here’s my tiny pep talk: The clearest objectives come from the real people who already love what you do. Ask a customer why they choose you instead of the guy down the block. Their answer? That’s your secret sauce to setting meaningful goals.
Because once you nail down those objectives, it’s a heck of a lot easier to decide where to spend your budget—whether you’re in the heart of Toronto or running curbside pick-up in small-town Alberta.
Ready to stop squinting at your stats and actually see what makes sense? Onward to turning those goals into a plan (without breaking the bank… or your spirit).
3. Evaluate All Potential Expenses
Alright—let’s talk turkey. Because if you’re anything like me when I started out, you maybe thought advertising meant just tossing a few bucks at Facebook or slapping a logo on the local hockey team’s jerseys. (In hindsight? Hockey moms notice everything but rarely visit my bakery. C’est la vie.)
Before you even THINK about your “big” advertising channels, let’s break down what can quietly eat away at your budget. Spoiler: It’s way more than your ad buy.
Those Sneaky “Hidden” Ad Costs (Yup—They Bite!)
Don’t you love when things pop up on your bill that nobody warned you about? Here’s a cheat sheet of what often gets left out of the “advertising cost” conversation:
- Creative costs: Did you design your own flyers, or did you pay Sheila’s cousin $300 for a logo that accidentally looks like a taco? Design work (even the amateur kind) can add up fast.
- Production expenses: Printing, video editing, signage. Remember that time you tried to film your own ad? My dog became the star. Production is often overlooked, but it’s no joke.
- Platform fees: Google Ads, Meta (née Facebook), even your local digital board operator—they all have their “admin” slivers.
- Promotional goodies: Think flyers, swag, contest prizes. Oh, the boxes of unsold water bottles in my basement…
- Tracking tools & analytics: Want to know if anything’s even working? Sometimes you’ll need to invest in tools or subscriptions. At one point, I had three dashboards and still no clue.
- Labor: Who’s managing all this, posting, checking stats, replying to DMs at midnight? If it isn’t you, it’s someone you’re paying (even if it’s in pizza and gratitude at first).
Let’s See the Numbers (for my fellow spreadsheet nerds)
| Expense Type | Low Range (Monthly) | High Range (Monthly) | Real Example |
| Creative (Design, Copy) | $50 | $800 | Canva Pro: $15/mo vs Freelance Designer: $400+ |
| Digital Ad Spend | $100 | $2000+ | Google Ads: Local plumber budgeted $300/mo |
| Social Media Boosting | $30 | $250 | Instagram promo for 1 event: $50 |
| Print Materials | $0 | $500 | Flyers for craft fair: $120 (500 prints, Vistaprint) |
| Promotional Items | $20 | $400 | Custom mugs, T-shirts for staff or contests |
| Time/Labor | “Free” | $1,000+ | Your hourly rate—Don’t forget to count your time! |
You know what they say…watch the pennies and the dollars watch themselves. Except, advertising is more like…watch EVERYTHING, or it’ll slip through your fingers like confetti at a parade.
Wait—Do I Really Need All This?
Short answer: Nope. Good news—nobody’s handing out “best-dressed marketing budget” medals. If you’re a one-person show with a TikTok following, maybe you only spring for some basic boosted posts and DIY your graphics.
But if you’re opening a cozy bookstore in downtown Halifax? Well, a few Instagram ads and a painted store window might go further than billboards or expensive swag.
My first Valentine’s Day as a business owner? I spent $100 on heart-shaped balloons and launched a “Find the Golden Heart” scavenger hunt across town. ROI? Loads of foot traffic from folks who had no idea we existed. Who needs national ad campaigns, right?
Region-Specific Reality Checks
Advertising in Toronto? Even a bus stop ad can require a mini-mortgage. Running a pop-up in Moose Jaw? Community sponsors will stretch that dollar a lot farther. Take a stroll (figuratively or literally) around your business neighborhood. What are other business owners doing?
One of my favorite tips: grab a coffee at the local cafe and count how many people check out those cork bulletin boards. Sometimes old school is the new secret weapon.
Quick Gut Check: Is Your Spend Worth It?
Ask yourself:
- Does this money make my business more visible where customers hang out?
- Can I track if it’s actually working, or is it a “look at me Mom” moment?
- If my budget shrank by half tomorrow, would this expense still make the cut?
Sometimes, the smallest costs—like a personalized thank you note in every shipped package—make the biggest impact. Honestly, every dollar you spend has to work double shifts in a small business. That’s not paranoia—it’s strategy.
So, what hidden ad expense surprised YOU the most? Drop your weirdest, wildest (or most hilarious) ad expense horror stories below. Or, if you cracked the code and managed to score big ROI from a shoestring budget, I’d LOVE to hear how you did it.
4. Monitor Expenses and Make Regular Adjustments
I’ve learned that keeping a close eye on advertising expenses is just as important as setting the initial budget. Tracking every cost helps me spot what’s working and where I might be overspending.
Regularly reviewing my results lets me shift my budget toward the channels that deliver the best value. If something isn’t driving the right results, I don’t hesitate to adjust or cut it.
Staying flexible with my ad spend has helped me maximize every dollar and stay competitive—even when the market changes or new opportunities pop up. If you’re willing to monitor and adapt, your advertising investment will go further and deliver better results.
