How Much Should a Ghanaian Business Spend on Marketing?
Too little and nothing happens. Too much in the wrong place and you burn cash. How to set a marketing budget from your revenue, margins and goals, and how to split it.
"How much should I spend on marketing?" There's no single right number, but there is a right way to work it out.
Start with a percentage, then adjust
Many established businesses spend somewhere around 5 to 10% of revenue on marketing. Businesses pushing for fast growth, launching new products or entering new markets often spend more, sometimes 15 to 20% or higher for a period.
For a business turning over GH₵ 30,000 a month, that's roughly GH₵ 1,500 to GH₵ 3,000 a month at the lower end, and more if you're pushing to grow.
But percentages are a starting point. Your margins and goals decide the real number.
Adjust for your margins
High-margin businesses, like services, digital products and premium brands, can afford to spend more to win each customer. Low-margin businesses, like food, commodities and discount retail, need to be careful, and focus on repeat purchases and efficiency.
Work out what you can afford per customer: average order × margin, plus the value of repeat purchases. See customer lifetime value.
Adjust for your goals
- Maintain: keep current customers and steady growth. Lower budget.
- Grow: more customers, new cities. Medium to higher budget.
- Launch: new product, new brand, rebrand. Higher budget for a period.
What a budget covers
| Category | Examples |
|---|---|
| Ad spend | Money paid to Meta, Google, TikTok |
| Creative | Videos, photos, designs, AI production |
| People | Agency fees, freelancers, in-house marketers |
| Tools | Website, checkout, email, SMS, CRM |
| Content | Social media, blog, SEO |
| Brand | Identity, packaging, signage |
| Offline | Events, flyers, sponsorships |
A common mistake is spending everything on ad spend and nothing on creative. Strong creative makes ad spend work harder. See ad fatigue.
Spend in the right order
If your budget is limited, spend where it pays back fastest:
- Fix leaks first: replies, follow-up, checkout. Cheapest wins. See how to get more customers.
- Sell to past customers: broadcasts, offers, referrals.
- Google Business Profile and reviews.
- Adverts with tracking, once the basics work.
- Brand and content to support everything else.
Once you have a budget, put it on a single page with your customers, message and targets; see a one-page marketing plan.
Track the return
Marketing isn't a cost if it brings back more than it takes. Track:
- Cost per customer.
- Return on ad spend. See ROAS explained.
- Revenue from each channel.
- Repeat purchase rate.
Increase spend where the return is strong; cut where it isn't.
Common questions
Is it better to spend a little every month or a lot at once?
Steady monthly spending usually works better for adverts and content. Bursts make sense for launches and seasons.
What if I can't afford an agency?
Start with the basics yourself: Google profile, content, replies and a small, well-run ad campaign. See in-house marketer or agency.
If you'd like a marketing plan built from your numbers, book a free strategy call.