How Do You Effectively Budget for Content Marketing? (Tips)

While content is everything in digital marketing, how much should you spend on content marketing services? How can you reduce the costs?

This article answers these pressing questions. It covers the following topics:

• Ideal amount to set aside for this strategy.
• Estimates for various content types.
• Tips for spending less on content marketing while maintaining quality.

Read on and learn how to set up and maintain a cost-efficient content marketing plan. Let’s go!

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How Much Should You Spend on Content Marketing? 

Generally, businesses allocate 25% to 30% of their marketing budget for content campaigns. These costs already include production and promotion.

For example, your annual revenue is $800,000. The ideal marketing spending would be approximately $40,000, of which at least $10,000 goes to writing blog posts or social media captions. 

However, these numbers are only estimates and can vary widely due to many factors:

     1. Industry

Usually, more competitive industries, such as technology and retail, allot a higher budget for marketing (and, therefore, content marketing). On the other hand, transportation, professional and financial services, and healthcare have a lower percentage because of a steady captive audience. 

Spending is also commonly higher in B2C than in B2B marketing. B2Bs target a smaller audience and gather an impressive amount of data for budget optimization. 

     2. Content Type

Content marketing cost also depends on your preferred type and marketing channel:

• Length, quality, visuals, and complexity are some of the factors that determine a blog post's cost. Content marketing services may charge you based on word count, per hour, or a fixed rate. 
• If you do not mind using free platforms, you can design an infographic at no cost. However, to access all the tools, get ready to spend at least $1,000 annually. 
• Because eBooks are more complicated and take longer to create, content providers charge at least $500. This can increase to $5,000 if you want other related services such as editing or proofreading, covers, and promotions.
• Hosting a webinar is hard work but can also cost zero if you opt for free tools such as Zoom. As you scale, though, so should your budget. This way, you accommodate more people, integrate other helpful tools such as a mailing list for lead generation, and avoid worrying about time limits. In addition, you may record your videos and use them for further marketing campaigns, including on YouTube.
• A short case study costs around $500. A longer or more complex one is almost $2,000. You or a digital marketing agency might have to interview, analyze different data, and create visual presentations. 
• Social media campaigns may have a zero budget because of free platforms such as Facebook or Instagram. Hiring a social media agency will cost you about $3,000 a month.  
• Thinking of getting an influencer? The prices vary. Those with over a million followers could charge thousands per post, although nano influencers can be just as effective at a lower cost.
• Email marketing is one of the most cost-effective campaigns for any business. Although it costs money, tools are often affordable and scalable. For example, you may opt to pay according to your number of subscribers. Additionally, when done correctly, the returns are high.  
• Running a YouTube channel also costs next to nothing if just having a phone and free editing software satisfies your budget. However, because quality visuals matter, set aside a bigger budget, especially if you want premium video production. 

This listing does not include paid ads. Although these are still under content marketing because their costs frequently fluctuate, they might as well be separate campaigns. 

How much does an ad cost? Google ads range from $2 to $50, depending on keyword price and where they are published. The most competitive ads are worth $30 and above per click. 

Social media ads published on platforms such as TikTok, Facebook, and Instagram, range from $10 to $200 per day. Account managers might charge up to $6,000 per month, but you are able to apply strategies to spend less or increase ad profit.

     3. Growth Stage

Here are a few pointers on these numbers:

• The content marketing budget for a startup focuses on creating high-quality content that helps the business reach its target audience and generate leads.
• Early-growth businesses need to increase their brand awareness and generate more leads. This means producing more content and diversifying both the type and marketing channel. A part of the budget also goes toward analytics to track performance.
• Mid-growth companies usually have a bigger budget for content marketing. They compete more aggressively by including paid advertising in the marketing mix.
• Established or mature organizations use content marketing services to sustain their leadership and authority.

5 More Tips for a More Effective Content Marketing Budget

The above three factors alone give you a clearer idea of a good content marketing budget. If you need more help to optimize it, read these tips:

• Know your objectives. These dictate many content marketing aspects, from types to channels, metrics, and duration. For instance, lead generation gets more expensive in the long run than customer-retention campaigns.
• Track your performance. This alone answers many cost-related questions. These include, “Which has the highest returns?” “When is the best time to publish my posts?” “Should I use this strategy for another campaign?” “Must I end this campaign before I lose more money?” and “How much is my burn rate?”
• Maximize the “free” stuff. Many free platforms and techniques are good, especially if you are a small business with a limited budget. Search engine optimization (SEO), for example, delivers organic traffic, making it a worthy technique when doing paid advertising.
• Prioritize quality because cheaper does not always equal savings. For instance, high-quality content ranks higher in the search results, giving you more free exposure, improving your online credibility, and establishing your authority and expertise. All of these make marketing easier.
• Grow customer relationships. Marketing to existing customers is still cheaper than acquiring new ones. Plus, they become your brand advocates through word of mouth and great sources of user-generated content (UGC).

Summing Up

Is content marketing low-cost? It is. When budgeted wisely and optimized, it generates high returns. 

You also spend less when you opt for content marketing services versus going the DIY route. Digital Authority Partners (DAP) helps you develop tailored campaigns and plans by utilizing innovation, expertise, and business goals.  

Contact us today to learn more about our strategies.