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Cost guide

What digital marketing costs an Indian SMB

Three agencies quote three numbers because each one bundles the retainer, media spend and production differently.

The GullySales team · Updated 15 Sept 2026 · 6 min read

A business owner and adviser review a project scope and budget
On this page
  1. What you are actually paying for
  2. Six things that change the number
  3. What a proposal must say before you sign
  4. Why we do not put a number on this page
  5. What to do next

Digital marketing has no fixed price, because every agency bundles different things into one figure. Ask three agencies and you get three numbers that cannot be compared, and none of them has to be dishonest. We do not publish a price before we understand how a business makes money, and neither should anyone else. What we can do is show you what sits inside the number, what moves it, and what a proposal must say before you sign it. Then three quotations become comparable, which is most of the problem solved.

What you are actually paying for

Almost every quotation you receive contains three very different things, usually added together into one figure.

The retainer is the agency's time: strategy, running the work, and reporting. This is their income.

Media spend is money that goes to Google, Meta or a publisher. It is not the agency's income and it should never be inside their fee. It is your budget passing through their hands.

Production is the pages, the video, the creatives and the copy. Cheap proposals often leave this out, and it arrives later as a second invoice when the campaign cannot run without it.

Ask for the three split out. We quote ours that way as a matter of course. An agency that cannot separate them has not planned the work. The three behave differently: the retainer stays steady, the media spend should rise and fall with results, and production is heaviest at the start.

Six things that change the number

These are in rough order of how much they matter.

  1. How long your sales cycle is. A ₹3,000 same-day purchase needs advertising and a page. A four-month industrial sale needs content, a follow-up routine and a CRM, because the order arrives long after the click. The second costs more over time and produces a better business.
  2. How many kinds of buyer you have. One offer to one audience is one set of messages. Three segments, say architects, contractors and homeowners, is three sets of pages, three sets of creatives and three sets of ads. The cost rises close to linearly.
  3. Whether your website can convert. Sending traffic to a site that does not convert is the most common way an Indian SMB wastes a marketing budget. If the site is the bottleneck, the first invoice is a website invoice, and that is the cheapest thing in this list to fix.
  4. How competitive your category is. Cost per click is set by how many businesses are bidding for the same terms. Legal services, property and education cost a multiple of what a niche manufacturing term costs, for the same click.
  5. What you already have. A business with a working CRM, a library of real photographs and somebody who answers enquiries needs far less setup than a business running entirely on one person's WhatsApp.
  6. Strategy, or strategy plus execution. A plan on its own is cheaper than a plan being carried out. Many low quotations are for the plan only, and the execution arrives as a second number after you have committed.

What a proposal must say before you sign

Judge a proposal on five things rather than on its total.

What to look forWhy it matters
The artefacts that will exist at the endTwelve service pages and a follow-up register can be checked. "Social media management" cannot
What will be measured, from what baseline, reviewed on what dateWithout a baseline written down, every future report is an opinion
Who owns the accounts, the content and the data afterwardsAd accounts, analytics and your lead database should be in your name from day one
The named person doing the workAn agency signature is not accountability. A name is
What is explicitly excludedThe exclusions list tells you more about the planning than the inclusions do

Why we do not put a number on this page

Because the honest range is useless. For example, a single-location physiotherapy clinic in Bengaluru wants more appointments from its own locality. A pump manufacturer wants dealers across eleven states. Both are small businesses asking for digital marketing, and any range that covers both is too wide to help either of them plan.

We scope your number after reading your brief and speaking to you, instead of guessing at a range that fits nobody.

What to do next

Take the quotations you already have and try to split each one into the three parts. Where you cannot, email and ask. The replies will tell you which agency has planned your work and which has planned its pitch.

If you want a scoped number for your own business rather than a range for somebody else's, tell us what you need.

Questions

Questions owners ask.

Why will you not publish a price range?
A range wide enough to be honest is too wide to be useful, and a range narrow enough to be useful would be wrong for most of the people reading it. We scope the work after reading your brief and speaking to you, and put the fee in writing before anything starts.
Is charging a percentage of ad spend fair?
It is common, and it has a problem built into it. It pays the agency more when you spend more, at exactly the moment when spending less might be the right call. We do not charge that way. If someone does, ask what happens to their fee when the correct budget is smaller.
What is the cheapest useful thing to start with?
An audit, usually, because it stops you spending twelve months on the wrong channel. After that, whatever unblocks the enquiries you already get, such as follow-up, the website or lead routing, before you pay to find new ones.
Should we just hire someone instead?
Often an agency first to build the system, then a hire to run it. One hire gives you one skill set and deep knowledge of your business. An agency gives you five skill sets and less context. The two are stages, not alternatives.

From the blog

More notes for owners.

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