How Much Does Content Marketing Cost?
March 18, 2021 •DJ Team
Content marketing has been a high-return focus for many businesses, and the push for it over the last couple of years reflects how consumers want to gain information.
When the coronavirus hit in 2020, content became more valuable to consumers who were stuck in isolation, with the internet as their only major means of communication.
Going into 2021, as the more immediate effects of the pandemic wane, it still leaves a lasting effect on the economy and consumer culture. If you aren't on the content marketing bandwagon already, it's time to start investing.
Understanding Your Overall Marketing Cost
Marketing is all about earning visibility for your products and services. Marketing costs scale with the size of your business. The more annual revenue you pull in, the more you can dedicate to marketing and the more customers you attract. It's a cycle.
You're probably asking the question: "How much does marketing cost?" Here's the answer.
The average percentage of a company's revenue budgeted on marketing ends up somewhere between 7% and 10%. Of course, depending on the size and needs of your business, that percentage may be higher or lower.
Marketing itself is a blanket term, and there are many types of marketing, but they usually fall into either traditional or digital marketing. To determine how much marketing should cost, you first need to decide what type of marketing you want to perform.
Several recent trends make digital marketing costs worthwhile: the boom of search algorithms, the rise of internet browsing culture, and most recently, how COVID-19 has increased the value of the internet. It's no wonder the average spending for digital marketing is growing by more than 14%.
Not to say that traditional marketing isn't effective, but traditional methods such as newspaper, TV, and billboard advertisements tend to have:
- Higher costs
- Smaller reach
- Less engagement
- Fewer means of tracking and analyzing results
For businesses with low budgets, a good portion of your budget should focus on digital marketing to get the most bang for your buck. If your business has deeper pockets, creating a complementary blend of digital and traditional marketing brings out great results.
The next question is, "How much does digital marketing cost?" Digital marketing tends to account for up to 80% of total marketing budgets.
What Does Content Writing Cost Look Like?
Generally, content marketing costs less than other marketing forms. In fact, content marketing can cost as much as 62% less than traditional marketing. It's one of the most cost-effective methods to connect to your audience.
Content writing, which includes articles, blogs, and other written material, is a solid, go-to choice when it comes to content marketing. You can manage content creation yourself, but with the variety of content creators available, many businesses prefer to outsource their content writing.
Content writing services pricing varies depending on who you go to and what they decide on things like how much to charge for writing web content and how much to charge for Instagram content creation. Many marketers spend up to 40% of their marketing budget on content marketing. Consider what amount is best for your business.
Content Pricing Strategy - Developing Your Template
As you create your content marketing budget, go over your content strategy with our free content marketing strategy report to determine what you should be spending your time and money on.
With the report, you can use consumer insights to analyze the content pricing models of marketing firms and the new product pricing strategies best for your business.
Building a Marketing Expenses Budget
The cost of marketing also changes depending on the type of marketing, which you'll need to consider before drafting what expenses are necessary for your marketing budget. You need to decide how much you want to invest into things like:
- Long-form articles
- Blog articles
- Social media content
- E-books and guides
- Advertisement copy
After you decide what you'd like to include in your budget, give each a percentage of your budget so you know how much you're investing in each content type. Use a marketing budget template to help you, and remember to analyze the revenue that your current content is generating so you can create a successful marketing budget breakdown.
Small Business Marketing Budget Example
A few years ago, there was a CMO survey on the average marketing budget by industry. In regards to the percentage of the total budget spent on marketing:
- Consumer services: 15%
- Construction: 13%
- Education: 11%
- Retail wholesale: 10%
- Healthcare: 10%
- Manufacturing: 8%
Those numbers might have changed slightly since then, but it's good to keep in mind your industry when determining how much of your budget should go to marketing.
What's the best way for how to set a marketing budget for your small business? Often, it's to hire a marketing consultant.
Since budgets vary depending on your business and what you want to accomplish, check a variety of consulting firms for their digital marketing packages for small businesses. The best businesses will give you a range of services you can choose from to tailor what you want in your budget.
Looking to get started with your content strategy? DemandJump has simplified the process - by automating it.
DemandJump Insights show you where you are losing out to competitors and identifies the exact pieces of content to create. Then, with the click of a mouse you are given SEO content outlines to ensure that your blog ranks on the first page. Get started today for free!
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