Most contractors should spend between 5% and 10% of revenue on marketing. Newer companies trying to grow fast lean toward 10% or higher; established companies with steady referral work can sit closer to 5%. On a $500,000 business, that’s roughly $25,000 to $50,000 a year, or about $2,000 to $4,000 a month. But the percentage matters far less than where it goes: for a local contractor, the highest-return spending is on getting found on Google (your Google Business Profile, local search, and reviews), because that’s where ready-to-hire customers are looking right now.
Here’s how to think about it, and how to avoid wasting it.
The percentage is a starting point, not the real question
The “5 to 10% of revenue” rule is a fine place to start, and it’s what most marketing guides will tell you. But it can be misleading for a contractor, because it treats all marketing spend as equal. It isn’t.
A contractor spending 10% of revenue on the wrong things (a fancy brochure website nobody finds, sponsoring a local team for goodwill, ads that don’t track) can get almost nothing back. A contractor spending 5% on the right things (showing up on Google Maps when someone searches “[trade] near me,” and turning that into calls) can book more work than they can handle.
So the better question isn’t “what percentage?” It’s “where does a dollar of marketing produce the most jobs?” For a local contractor in 2026, the answer is clear.
Where a contractor’s marketing money should actually go (in order of return)
1. Getting found on Google (the highest return). When someone needs a contractor, they search. And the first thing Google shows them is a map with three local businesses on it, before any regular website. Being in that map, with strong reviews, is where most local contractor calls come from. Money spent making sure you show up there (your Google Business Profile, local search visibility, and a steady flow of reviews) tends to return more than anything else, because you’re reaching people at the exact moment they’re ready to hire.
2. A website built to convert, not just to look good. Your website has one job: turn a visitor into a call. Click-to-call on every page, clear services, real photos, obvious next step. A pretty website nobody can find or figure out is wasted money. A fast, findable, conversion-focused one pays for itself.
3. Paid ads, when you need leads faster than SEO can deliver. Google Local Services Ads (the “Google Guaranteed” ones) let you pay per lead rather than per click, and they show up at the very top. They’re a good fit when you need work coming in quickly while your organic presence builds. The tradeoff is you stop showing up the moment you stop paying, so treat ads as an accelerator, not a foundation.
4. Everything else (brand, print, sponsorships) comes last. These have their place for a well-established company protecting its name, but for a contractor trying to book more jobs, they’re the lowest-return use of a marketing dollar. Do them once the first three are handled.
How much of the budget goes where?
A reasonable split for a local contractor focused on getting more work:
- The majority on getting found and converting (local search, Google Business Profile, reviews, a website that turns visitors into calls). This is the durable asset you own.
- A portion on paid ads if you need leads now or you’re in a competitive market.
- A small amount on everything else.
The exact split depends on where you’re starting. If you’re invisible on Google, almost everything should go to fixing that first, because it’s the cheapest, fastest source of ready-to-hire customers.
How to tell if your marketing is actually working
This is where most contractors get burned: they spend money and can’t tell if it did anything. The fix is simple. Track the thing that matters:
- Not website visits or “impressions” or social media likes.
- Yes: calls, quote requests, and booked jobs, and where they came from.
A good rule: one extra job a month should cover a meaningful chunk of your marketing budget. For most contractors, whose jobs are worth thousands, a small number of extra calls changes the whole year. If your marketing isn’t producing trackable calls and jobs, it’s not working, no matter how nice it looks.
What about SEO specifically?
For local contractors, search (SEO) is usually the highest-return line in the marketing budget, because it builds an asset you own and it reaches people at the moment they’re ready to hire. It’s slower than paid ads, but it compounds, and it doesn’t stop the day you stop paying, the way ads and lead-buying platforms do.
If you want the specifics, we’ve published exactly what SEO costs for a trades or contracting company in Ontario, with real numbers and no “contact us for a quote”: How Much Does SEO Cost for Trades Companies in Ontario?
The bottom line
Spend somewhere between 5% and 10% of revenue on marketing, but don’t get hung up on the percentage. Put the majority of it into getting found on Google and turning that into calls, because for a local contractor, that’s where the ready-to-hire customers are. Track calls and jobs, not vanity metrics. And remember that one extra job a month usually covers a big part of the cost.
Marketing isn’t an expense for a contractor who does it right. It’s the thing that keeps the phone ringing.
First Page Digital helps contractors and trades companies across Simcoe County & Muskoka get found on Google and get the phone ringing. See how we help: SEO for Trades. Or get a free look at where your business stands.