Content marketing is an important aspect of many marketing teams’ strategies for helping businesses grow. It can be hard to know where to get started, let alone how to budget for it, which after all, has to happen before you can get started! In this post, I’ll cover some of the most common questions marketers ask about how to budget for content marketing.
How Much Does It Cost to Do Content Marketing?
The cost of content marketing varies widely depending on factors such as the size and complexity of the content marketing campaign, the industry and niche, the scope of the target audience, and the level of expertise and resources required to produce and promote the content.
Some companies may choose to produce content in-house with existing staff and resources, while others may choose to hire freelancers or content marketing agencies to create and manage their content. In general, producing high-quality content requires an investment in time, effort, and resources.
On average, a small business may spend around $1000-$5000 per month on content marketing, while larger companies may spend $10,000-$50,000 or more per month. However, it’s important to keep in mind that the ROI of content marketing can be significant, as it can help to attract and retain customers, build brand awareness, and drive sales over the long term.
What do companies spend on content marketing as a percentage of their total marketing budget?
According to a study by the Content Marketing Institute, the companies they surveyed spend an average of 26% of their total marketing budget on content marketing. However, this figure can vary widely depending on the industry, size of the company, and the goals of the content marketing campaign.
For example, B2B companies tend to allocate a larger percentage of their marketing budget to content marketing than B2C companies, with an average of 29% of their marketing budget going towards content marketing. Additionally, small businesses with less than $5 million in revenue tend to allocate a higher percentage of their marketing budget to content marketing than larger enterprises, with an average of 42% of their marketing budget going towards content marketing.
It’s important to note that the percentage of a company’s marketing budget allocated to content marketing can vary depending on the goals of the campaign, the size and scope of the content marketing program, and the resources available to the company. Additionally, companies may choose to adjust their content marketing spend based on their ROI and the performance of their campaigns over time.
How Do You Calculate the ROI on Content Marketing?
Calculating the ROI of content marketing can be complex, as it involves measuring both the costs of producing and promoting the content and the returns it generates for the business. Here are some steps to calculate the ROI of content marketing:
- Define your goals. Before starting a content marketing campaign, you should define your goals and KPIs (key performance indicators). For example, your goals could be to generate leads, increase website traffic, improve search engine rankings, or boost social media engagement.
- Track your costs. To calculate the ROI, you need to track the costs of producing and promoting your content. This includes the cost of creating the content (e.g. salaries of content creators, agency fees, etc.), the cost of promoting the content (e.g. paid social media ads, email marketing software, etc.), and any other associated costs.
- Measure your returns. To measure the returns of your content marketing campaign, you need to track the relevant KPIs that you defined in step 1. For example, you could measure the number of leads generated, the increase in website traffic, the improvement in search engine rankings, or the increase in social media engagement.
- Calculate the ROI. To calculate the ROI, you can use the following formula: ROI = (Returns – Costs) / Costs. This will give you a percentage that represents the return on investment of your content marketing campaign.
It’s important to note that content marketing ROI may not always be immediate, as it can take time for content to gain traction and generate returns. Therefore, it’s important to measure the ROI over a period of time and adjust your strategy as needed to improve your results.
How Much Does It Cost to Create Content Marketing Assets?
Content marketing assets can take many forms, from blog posts to videos, e-books, webinars, and social media posts. Here are some examples of content marketing assets and their approximate cost to create:
- Blog Posts. Blog posts are a common and cost-effective way to produce content. Depending on the length and complexity of the post, costs can range from $50 to $500 per post.
- E-books. E-books are more in-depth and typically require more time and resources to produce. The cost of creating an e-book can range from $500 to $5000, depending on the length, research required, and design.
- Videos. Videos are a highly engaging content format that can be expensive to produce. The cost of creating a video can range from $1000 to $10,000 or more, depending on the length, production quality, and complexity.
- Infographics. Infographics are visually appealing and can be a great way to present complex information. The cost of creating an infographic can range from $500 to $5000, depending on the complexity and design.
- Webinars. Webinars can be a highly effective way to generate leads and engage with your audience. The cost of creating a webinar can range from $1000 to $5000 or more, depending on the length, promotion, and production quality.
- Social Media Posts. Social media posts are a cost-effective way to promote your content and engage with your audience. The cost of creating social media posts can range from $50 to $500 per post, depending on the complexity and design.
It’s important to note that these are just rough estimates and that the actual cost of content marketing assets can vary widely depending on the scope, quality, and level of expertise required. Additionally, costs may be higher or lower depending on whether the content is produced in-house or by a third-party agency.
What Are Some Typical ROI Benchmarks for Content Marketing Efforts?
Measuring the ROI (return on investment) of content marketing can be challenging, as it depends on a variety of factors such as industry, target audience, goals, and KPIs (key performance indicators). However, here are some benchmarks for ROI on content marketing investments based on industry averages:
- B2B (business-to-business). According to a study by the Content Marketing Institute, the average ROI for B2B content marketing is around 3:1. This means that for every dollar spent on content marketing, businesses are seeing a return of three dollars.
- B2C (business-to-consumer). The average ROI for B2C content marketing is slightly higher than B2B, at around 4:1. This is likely due to the fact that B2C businesses can have a larger audience and may have more opportunities to engage with customers through social media and other channels.
- E-commerce. For e-commerce businesses, the ROI of content marketing can vary widely depending on the products and target audience. According to a study by Shopify, the average ROI for content marketing in e-commerce is around 1.5-2x.
- Software as a Service (SaaS). The average ROI for content marketing in the SaaS industry is around 5:1, according to a study by the Aberdeen Group. This is likely due to the fact that SaaS businesses often have a long sales cycle and need to educate their audience on the benefits of their software.
It’s important to note that these benchmarks are just averages and that the actual ROI of content marketing will depend on a variety of factors, including the quality of the content, the effectiveness of the distribution channels, and the ability to measure and optimize the campaign over time.