What falls within your content marketing budget versus your marketing budget may vary by organization and structure, but ensuring that you have the right resources to implement an appropriate, ongoing content marketing strategy is imperative to your success. Depending on your organization, you may include sales costs, technology and tools (martech), research, web development and other items within either budget. Some of these costs may be one-time expenses and some are ongoing.
There are a number of other considerations to take into account when determining your marketing budget, such as the size of your company and revenue. If you are a start-up business, you will most likely need to put a larger percentage of your revenue towards your marketing budget than if you are an established company. Your industry, competition and the marketplace will also be considerations. If you are in a highly competitive industry, you may need to spend more. The type of product or service you sell, the average revenue per sale, and length of the buying cycle will also determine how much budget is required. If you have a higher average revenue per sale and a longer buying cycle, it may take more time and more content to move your buyer along the purchase journey. The size of your potential audience/buying audience and region will also determine this.
As a general rule of thumb, marketing budgets tend to fall in the 5 to 20% of revenue of a brand or organization, with the average falling around 11.2% of revenue in 2018, based on Gartner CMO Spend Study 2018-2019. The Content Marketing Institute’s annual B2C and B2B study, Benchmarks, Budgets and Trends 2019, has brands and organizations allocating 25 to40% of their marketing budget towards content marketing.
With this in mind, we can assume a company with $10 million in revenues might allocate 11.2% towards marketing, giving them an overall marketing budget of $1,220,000.If they allocated 35% of that budget towards content marketing, it would be $392,000. The caveat here is ensuring that you are clear about what falls into each budget and that you are covering off all aspects of the marketing plan.
When it comes to allocating your content marketing budget remember to plan for:
- Creative Development
- Content Creation
- Content Publishing & Amplification
- Tools & Tech
- Other (i.e. research, etc.)
One of the most common mistakes we run into is that clients spend the majority of their budget on content creation, without thinking through how it will be delivered to the right audiences. But great content is of little value if it is not published and distributed through the appropriate channels (paid, earned and shared), with resources allocated for management, maintenance, amplification and measurement.
As part of your budgeting process, make sure you have your end-goals in mind and prioritized them. You may not be able to accomplish everything you’d like, but it is better to focus on fewer goals, channels, content types, etc. and ensure quality over quantity, and success with top- priority outcomes. If you have questions about how to establish content marketing targets for your goals, we’d love to help. Reach out to us at firstname.lastname@example.org.