When it comes down to digital marketing, content marketing is now the most popular form. This is because if you get it right, you can drastically increase the traffic to your site, which, in turn, will boost sales for whatever type of product you’re selling.
Companies who know the importance of content marketing are spending more of their budget on it than ever before. Therefore, an important question that needs to be answered is just how much of your marketing budget should be spent on content?
What is Content Marketing?
Before we answer the above question, it’s essential to have a clear understanding of what content marketing actually is.
Content marketing is a strategy that focuses on producing and distributing relevant and valuable content with the primary aim of attracting and retaining a specific audience that will lead to monetary profit.
Some popular examples of content marketing include webinars, guest posts, white papers, infographics, how-to guides, Ebooks, podcasts, case studies, and templates. These are all great methods you can use to create a relationship with your audience.
Different Content Marketing Methods
Once you know who your main audience is and the type of content they’re after, your next step is working out how to get quality content and, of course, how much you should spend for it.
There are a number of methods you can use to get top quality content, two of which are described below:
Working with content writing freelancers is an excellent option for businesses that already possess a productive marketing team, but need help producing more quality content. It can take a while to find quality writers, but in the long run, it will save you money and time.
These are companies that get content requests from other companies, who then assign the requested work to writers who have signed up to their system. Working with content agencies like Topcontent makes it easier for you as you only have to review and approve the texts produced. You don’t have to search for freelance writers yourself because content agencies got your back.
How Much of Your Budget Should You Spend on Content Marketing?
It’s believed that a company should spend around 25-30% of their allotted marketing budget on top quality content.
According to The CMO Survey from February 2018, around 7.9% of a company’s revenue is allotted to the marketing budget – so, for argument sake, let’s say that 5% and 10% of a company’s revenue is the minimum and maximum.
A good formula to follow is:
|Annual revenue x % of total revenue allotted to marketing budget x total marketing budget % = annual content marketing budget|
Therefore, if you make €1,000,000 revenue each year, the minimum you should spend on content marketing is €12,500 (100,000 x 0.05 x 0.25), while the maximum is €30,000 (100,000 x 0.1 x 0.30).
Hopefully, we have provided a good insight into how much of your marketing budget you should spend on content. Content marketing is becoming more and more popular, so make sure that you invest in it.