How To Plan a Marketing Budget for Energy and Utilities Companies
Building a marketing budget can help your utility company market itself to potential customers. Below, we will cover everything you need to know about marketing budgets for energy and utilities companies.
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insights from 185,000+ hours of power and utility companies marketing experience
How much do energy and utilities companies spend on marketing?
48% of energy and utilities companies spend between $1,000 and $10,000+ per month on marketing.
Here is what we will cover:
- How much do energy and utilities companies spend on marketing?
- Energy and utilities marketing budget breakdown
- Factors that impact energy/utilities marketing budgets
- How to create a marketing budget for energy and utilities companies
- FAQs on marketing budgets for energy and utilities companies
If you want to start planning your budget now, check out our free template below!
Download Now: Our Energy & Utilities Marketing Budget Planner
How much do energy and utilities companies spend on marketing?
Around 48% of energy and utilities companies spend between $1,000 and $10,000+ per month on marketing, or around 3-8% of their revenue.
Here’s a look at how companies in your industry responded when asked how much they spend:
Energy and utilities marketing budget breakdown
Understanding where your digital marketing budget may go is key to creating an effective one. The main area of focus is the strategies you invest in.
The chart below shows the percentage of people in your industry that invest in each strategy:
You can then look at the average price of digital marketing to see how much you can expect to pay for these top services:
|
2025 Energy & Utility Marketing Spend |
|
| Channel | Monthly Spend |
| Paid Advertising | $100-$10,000 |
| Search Engine Optimization (SEO) | $2,500-$7,500 |
| Social Media | $100-$5,000 |
| Email Marketing & SMS | $50-$100 |
| Content Marketing *Includes long-form content, sales copy, SEO blog posts, etc. |
$5,000-$10,000 |
| Reputation Management | $500 to $10,000 |
Energy and utilities companies prioritize content marketing, reputation management, paid ads, and SEO when it comes to their marketing budget allocation
Factors that impact energy/utilities marketing budgets
So, what else do you need to consider when planning your digital marketing budget for energy and utilities companies? Here are the top factors based on our research:
Here are a few other industry challenges to note:
- Regulatory compliance: Your marketing campaigns must adhere to regulations regarding pricing, billing, and service information. These regulations limit creativity and options for marketing.
- Increased competition: More competition means your marketing will be the key difference in helping your target audience find you.
- Seasonal demands: Energy demands change throughout the year, especially if you live in a seasonal climate. You should plan around any dips in revenue with your marketing budget.
How to create a marketing budget for energy and utilities companies
How to Create Your 2025 Energy & Utilities Marketing Budget
- Allocate 3-8% of your total revenue for marketing
- Reserve between 5-15% of your marketing budget to invest in new marketing strategies
Now that you know what goes into your marketing budget, you can start planning for 2025!
Here is how to create a marketing budget for energy and utilities companies in four steps:
- Outline goals for your marketing budget
- List all possible industry and business costs
- Determine how much you want to spend on marketing
- Adjust to meet your ROI expectations
1. Outline goals for your marketing budget
Before you start building a budget, you need to decide what you want to accomplish with it. Having clear marketing goals will help you plan your budget toward measurable progress.
For utility companies specifically, your main goal is likely to attract new residential and commercial customers through digital marketing. Some example marketing goals for utility companies would be:
- To boost sales by X% in the next three months
- To grow traffic to your website by X% in the next month
- To improve email click-through rates (CTR) by X% in the next six months
These goals will ultimately help you maintain current customers, increase brand awareness, and educate consumers about their energy and utility provider.
2. List all possible industry and business costs
Once you have budget goals, you should refer to your current digital marketing strategies and budget to see what strategies are working for you currently. Whether you’re new to digital marketing or want to transition from traditional tactics, you need to plan ahead for what you want to invest in.
Make a list of the channels that bring in the highest ROI and any technology or subscriptions associated with those costs. For example, if you invest in email marketing, you would account for any automation or email-building tools you use.
You should also factor in some of your budget for trying new strategies such as venturing into social media. The digital marketing industry changes constantly, so investing in experimentation is essential for staying ahead. Plus, 70% of companies in your industry already do:
3. Determine how much you want to spend on marketing
From here, the next step is giving your budget a dollar amount that you can allocate for your marketing plan. Review the following to get an idea of how much to spend:
- Last year’s marketing budget
- Your annual revenue
- Your ROI on marketing channels
You can expect to fall within the $1,000 to $10,000+ range for monthly spend. You might spend more or less depending on your company size, what you choose to invest in, and other industry factors like market health and competition.
4. Adjust to meet your ROI expectations
Finally, be sure to take time and review your budget periodically. For utility companies that deal with seasonal changes, planning a quarterly evaluation might be the best choice.
You want to make sure the strategies you invest in are still driving revenue for your business. If not, you can adjust your budget to prioritize the highest ROI.
FAQs on marketing budgets for energy and utilities companies
Want to learn more about energy and utilities marketing budgets? Check out our FAQ!
How much should energy and utilities companies spend on marketing?
Most energy and utilities companies spend over $10,000 per month on marketing, or around 3-8% of their revenue. If you want to be competitive in the market, you should plan to spend around that much yourself. Otherwise, you could be falling flat.
How much does the electric industry spend on marketing and advertising?
In 2023, the electric services industry in the United States spent over $262 million on advertising. That number increased from $164 million in 2022. This means that companies are spending more on advertising in the energy sector per year.
What is the average marketing budget for utilities companies?
The average marketing budget for utilities is around 3-4%, but it can reach up to 8% or more depending on your company size, growth goals, and specific company goals.
Charge marketing campaigns with help from WebFX!
Even with the right resources, building a marketing budget for utilities providers is challenging. Working with one of the best energy and utilities marketing agency like WebFX, however, can transform your budget into a revenue-driving plan.
We have over 33,500+ hours of expertise in the power and utilities industry, and we make a point of staying updated on all the latest trends. With our insight and custom digital marketing plans, you get a unique approach to marketing tailored to your needs, budget, and challenges. You can invest only in the strategies that have the data to support their effectiveness.
Want to learn more? Contact us online today to start getting a higher ROI from your marketing budget!
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Table of Contents
- How Much Do Energy and Utilities Companies Spend on Marketing?
- Energy and Utilities Marketing Budget Breakdown
- Factors That Impact Energy/utilities Marketing Budgets
- How to Create a Marketing Budget for Energy and Utilities Companies
- FAQs on Marketing Budgets for Energy and Utilities Companies
- Charge Marketing Campaigns with Help from WebFX!
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