Search engine optimisation (SEO) is an essential investment for any business looking to grow its online presence, attract quality leads, and stay competitive. However, many companies struggle with where to allocate their SEO spending. Should it come from the marketing budget, the IT budget, or even a separate digital strategy fund?
The short answer: SEO is a marketing function and should typically be funded as part of your marketing budget. However, depending on your business structure, it may also draw from other areas. Let’s break it down.
Why SEO Belongs in the Marketing Budget
1. SEO Is a Core Marketing Function
SEO is all about increasing visibility, driving organic traffic, and improving conversions—key marketing goals. Just as you would allocate funds for social media ads, email marketing, or content marketing, SEO should be treated as a fundamental aspect of your marketing strategy.
The modern digital landscape is heavily driven by search engines. Studies show that a significant portion of web traffic is generated through organic search, making SEO indispensable. Whether you are running an e-commerce business, a service-based company, or a B2B enterprise, being visible on search engines means attracting potential customers without having to pay for every click like in paid advertising.
2. It Works Closely With Content and Paid Strategies
SEO efforts often overlap with content marketing and paid advertising. High-quality content is essential for ranking well, and a strong SEO strategy can reduce your reliance on paid ads over time. If your marketing team is responsible for content and PPC, they should also be in charge of SEO.
For example, blogging, guest posting, and video marketing all contribute to SEO performance. Businesses that integrate their SEO and content strategies experience better engagement and higher conversions because they are consistently delivering relevant and valuable content.
3. It Provides Long-Term ROI
Unlike paid ads, which stop delivering results once you stop spending, SEO builds a long-term digital presence. Over time, a well-executed SEO strategy lowers customer acquisition costs and improves overall digital marketing efficiency.
SEO can be compared to investing in a physical storefront—if properly optimised and maintained, it will continue to attract visitors and customers for years to come. This is why businesses with a long-term vision allocate funds for ongoing SEO efforts instead of treating it as a one-time project. As an example, an Australian-based company may engage an SEO agency in Brisbane to provide monthly SEO services with the long term goal of ranking improvement.
When SEO May Involve Other Budgets
While SEO primarily falls under marketing, some businesses distribute SEO costs across different budgets:
1. IT Budget (For Technical SEO)
If your SEO efforts require significant website upgrades—such as improving site speed, fixing broken links, implementing structured data, or ensuring mobile responsiveness—some of these costs might fall under the IT budget.
A technically sound website enhances SEO performance, but many of these improvements involve backend development work, which is often managed by IT departments. Companies that operate large-scale websites, such as e-commerce platforms or SaaS providers, may require dedicated IT resources for SEO-focused technical enhancements.
2. Product or UX Budget
User experience (UX) and product teams sometimes contribute to SEO costs, particularly for e-commerce businesses. Enhancing navigation, optimising product pages, or implementing a better internal linking structure may require investment from product or UX teams.
SEO and UX go hand in hand. Search engines prioritise user-friendly websites, so improving page load times, mobile usability, and overall site structure directly benefits SEO efforts. If your business is revamping its website or launching a new product, SEO considerations should be included in the development process.
3. Separate Digital Growth Fund
Some businesses create a standalone digital marketing or growth fund that covers SEO, PPC, and other performance-based marketing efforts. This is particularly common in companies that view digital marketing as a revenue-driving function rather than just a branding exercise.
A separate digital budget ensures that SEO gets the attention and resources it deserves, rather than being overshadowed by traditional marketing expenses. This approach works well for businesses undergoing digital transformation or aggressively expanding their online footprint.
How Much Should You Budget for SEO?
The amount you allocate to SEO depends on factors like your industry, competition, and business goals. A general rule of thumb:
- Small businesses: $500–$5,000 (USD) or £400-£4,000 per month (depending on whether it’s in-house or outsourced)
- Mid-sized businesses: $5,000–$20,000 (USD) or £4,000-£16,000 per month
- Enterprise businesses: $20,000+ (USD) or £16,000+ per month
However, these numbers are just benchmarks. Your actual budget should reflect:
- Competitor activity: If your competitors are heavily investing in SEO, you’ll need to match or exceed their efforts to stay competitive.
- Industry demand: Some industries, like legal services or finance, require more aggressive SEO due to high search competition.
- Business goals: Are you aiming for slow organic growth or an aggressive SEO push? Your budget should align with your objectives.
- Current SEO health: If your website is struggling with visibility due to past SEO issues, you may need to allocate more funds initially to correct foundational problems before seeing results.
The Cost of Not Investing in SEO
Businesses that neglect SEO risk losing valuable traffic and revenue to competitors. If your website isn’t optimised for search engines, potential customers will have a harder time finding you.
Consider this:
- A page ranking on the first page of Google can get 10x more traffic than one on page two.
- 75% of users never scroll past the first page of search results.
- SEO-driven leads have a higher conversion rate than paid ads because users trust organic search results more.
In short, skipping SEO can be more costly in the long run, as you may end up overspending on paid ads just to stay visible.
How to Allocate Your SEO Budget Wisely
Once you’ve determined your SEO budget, how should you distribute it? Here are key areas to focus on:
- On-Page SEO – Optimising title tags, meta descriptions, headers, and images to improve search rankings.
- Content Marketing – Investing in high-quality blogs, landing pages, and videos to enhance authority and engagement.
- Technical SEO – Improving site speed, security, mobile optimisation, and structured data.
- Link Building – Acquiring quality backlinks to strengthen domain authority and trust.
- Local SEO – Optimising for location-based searches if your business relies on local customers.
- SEO Tools & Analytics – Investing in platforms like SEMrush, Ahrefs, or Google Search Console for data-driven insights.
Final Thoughts
For most businesses, SEO should be included in the marketing budget. It aligns with marketing objectives, complements other digital strategies, and delivers lasting results. However, if your SEO efforts require significant technical support, you may need additional funding from IT or product teams.
Regardless of where the money comes from, investing in SEO is non-negotiable in today’s digital landscape. The better your business understands its role, the more effectively you can allocate resources and maximise ROI. Companies that treat SEO as a long-term strategy, rather than an afterthought, are the ones that see sustained growth and success.