Why Dental Marketing is Essential for Growth

We’ve all heard the saying, “You have to spend money to make money.” While it may be overused, it holds true—especially when determining your dental marketing budget. Investing in marketing is vital for the success of any dental practice. However, understanding the right dental marketing cost for your practice can feel overwhelming.

According to the Bureau of Labor Statistics, 1 in 4 small businesses fail within their first year, and 50% fail by their fifth year. This means many dental practices won’t be around in five years, leading to:

• Limited retirement options for dentists and staff
• Dentists working longer hours just to survive
• Decreased profitability and financial stability

To avoid these pitfalls, dentists must have a strategic marketing plan. The right dental marketing strategy ensures that your practice remains competitive, attracts new patients, and maximizes profitability.

Based on our 15+ years working with dentists in different markets across the US and Canada, we know that executing an effective dental marketing budget is key to every dental practice’s success.

Establishing Your Dental Marketing Budget

Where to Start

Online marketing is here to stay but one of the biggest questions for dental practices is: How much should you spend on it? More importantly, how do you ensure your marketing spend is effective?

Your dental marketing budget should align with your growth goals. If you want rapid growth, you need to allocate a higher percentage of your revenue to marketing. If you’re in a highly competitive market, your marketing spend will be higher than an established practice in a less saturated area.

If you want to test the waters or aren’t sure what the competition in your market looks like, a slow-growth path with a more conservative dental marketing budget might be the best choice.

Customized Approach to Dental Marketing Costs

There is no one-size-fits-all solution for determining a dental practice’s marketing budget. A new practice may need to spend $5,000 or more per month to see the same results an established practice can achieve with less.

Many dentists wonder, “What is the exact percentage of revenue I should allocate to marketing?” The Small Business Association recommends 7-8% of revenue for businesses earning under $5 million annually. 

At Firegang, we typically recommend dentists spend at least 5-7% of annual revenue on marketing. However, if you’re in a highly competitive area and want to dominate your market you may need to budget up to 10%.

Below is a chart to help you get started. Take a look at your desired revenue and match it with a basic budget recommendation.

The Cost of Cutting Corners

Think of your marketing budget like a patient’s decision about dental care. A patient may choose a lower-cost option initially but end up paying more for corrective procedures later. Similarly, dentists who cut corners on marketing end up losing potential new patients to competitors.

What Should Be Included in Your Dental Marketing Budget?

Your dental practice’s marketing budget should encompass multiple marketing channels to ensure maximum online visibility. These channels include:

1. Search Engine Optimization (SEO)

• Local SEO ensures your practice ranks on Google and other search engines for relevant keywords like "best dentist near me."
• A dental SEO agency can help optimize your dental website to generate leads and improve search rankings.

2. Google Ads & Search Engine Marketing

• Google Ads are crucial for dentists in highly competitive markets who want to attract prospective patients.
• Other search engines like Bing also offer paid advertising options to increase exposure.

3. Social Media Marketing & Advertising

• Leveraging social media platforms like Facebook, Instagram, and LinkedIn can improve engagement with existing patients and attract new patients.
• Social media advertising offers targeted reach based on demographics, interests, and behaviors.

4. Content Marketing & Web Pages Optimization

• Blog posts, landing pages, and optimized dental website content contribute to better search results and patient acquisition.
• A dental marketing agency can create key metrics-driven content to increase your online presence.

How to Calculate Your Dental Marketing ROI

Marketing Tools: Understanding Your ROI

Return on investment (ROI) measures the profit earned from each marketing investment. It’s calculated using the formula:

ROI = (Return - Investment) / Investment

For example, if you invest $5,000 in a marketing campaign and generate $50,000 in revenue, your ROI is 900% (which is very good)

Marketing Tools: Determining Patient Lifetime Value (PLV)

Another key metric to consider is Patient Lifetime Value (PLV):

PLV = Average Patient Value x Lifelong Relationship

If the average patient value is $1,000 annually and they stay for eight years, their lifetime value is $8,000. Understanding this helps determine how much you should allocate to marketing to attract new patients.

Smart Marketing Strategies for Different Dental Practices

New Practices vs. Established Practices

• New practice: Higher ad spend is necessary to gain traction and compete with established dental practices.
• Established dental practices: A more balanced approach, focusing on maintaining visibility and nurturing existing patients while attracting new ones.

How Many New Patients Do You Need?

If your goal is to add $250,000 in revenue annually, and the average new patient brings in $1,000 per year, you need 250 new patients annually or 21 per month.

Avoid the Pitfall of Under-Spending

Many dentists think they’re saving money by not allocating enough to their marketing budgets. However, not spending enough on marketing results in losing patients to competitors.

For example, if you need to generate $21,000 in additional monthly revenue, expecting this result from a $500/month marketing budget is unrealistic. A realistic marketing investment is essential for sustainable growth.

Final Thoughts: How to Maximize Profitability with a Strong Marketing Strategy

Determining the right dental marketing cost for your practice requires a balance of financial planning, market research, and selecting the best marketing channels. Your practice spend on marketing should be strategic, data-driven, and goal-oriented.

Get Expert Help from a Leading Dental Marketing Agency

At Firegang, we help dental practices navigate the complexities of digital marketing, SEO, social media advertising, and more. Whether you’re a new practice looking to establish a presence or an existing practice aiming for aggressive growth, we tailor marketing strategies to meet your needs.

Schedule a complimentary practice growth call with our team today to determine the best marketing strategy for your practice and start attracting more new patients!