According to an Ad Age survey presented by Marketing Charts, content marketing comprises an average of 12% of overall marketing budgets. A full 10% of marketers spend more than 30% on content marketing, and 9% spend 19-30%. This means that approximately one in five marketers with a budget of $100,000 would spend up to or more than $30,000 per year on content marketing. Also worth noting is that 55% of those surveyed indicated that they would be increasing their content marketing budget for 2013.
The results of the survey are below:
This many marketers can't be wrong about content marketing. If you're not using this important tactic as part of your marketing strategy, you're potentially missing a major opportunity to reach more new customers.
Why is content marketing so popular?
Consumers find products and services in a variety of ways, but one of the most popular is through Internet searching. The more content you have on your website, blog, and social media pages, the more likely it is that a lead will find you. However, when it comes to content marketing, quality is just as important as quantity. Consumers respond best to content that provides value. Whether it is advice or entertainment, quality content that is regularly updated will attract and retain more leads than simple sales pitches. The best content marketing campaigns build trust, educate the consumer, help you develop a loyal community, and increase sales conversions.
Important factors for creating a content marketing budget
There are many different types of content marketing, including:
- Blog posts
- White papers
- Social media campaigns
- Buyers' guides
The types of content that you should use will depend largely on your target audience, but it's important to use multiple approaches. For example, if you offer professional accounting services, you might create an informative white paper that describes recent tax updates, and a series of blog posts that answer the most common questions about changes to the tax code. On the other hand, if you sell flower arranging kits, a more effective approach might be to write a graphic-rich e-book and create a series of how-to videos.
Either way, the importance of ongoing content updates cannot be understated. After a lead reads your white paper or e-book, you need to create fresh new content that will keep them coming back for more. Factor this into your content marketing budget so you have enough funds to keep it going all year long. Remember, online content provides ongoing benefits beyond the initial attention it receives. A white paper will draw in new leads long after you have seen a return on the investment, and regular blog posts have a cumulative effect of improving search engine rankings.
How do you create a content marketing budget?
If you are introducing content marketing or placing more emphasis on this important component of an effective marketing strategy, you'll need to create a budget. Follow these steps to get started:
- Decide what percentage of your overall marketing budget will go to content marketing. If you follow the current trend, this will probably be 20-30%.
- Decide which types of content marketing you want to do. Remember, it's important to have ongoing content development in addition to the occasional e-book or white paper.
- Allocate your resources. Factor in the personnel time and costs (either in-house or outsourced) required for writing, editing, video production, graphics, distribution, and content promotion.
- Estimate monthly expenses. Create an annual editorial calendar so you can predict how much you will need each month. For example, if you plan to launch a new product or service in May, you might bolster your content marketing efforts around that time.
- Stick to it. A budget is useless if you don't actually use it. Track actual expenses so you can modify the budget as necessary. Don't forget to track successes and failures so you know where to focus your content marketing efforts in the next year.
It's clear that an effective content marketing strategy requires ongoing effort. Unfortunately, not all businesses have the talent or resources to do it on their own. This is why so many small businesses choose to outsource content development to a company that has the expertise and staff to generate quality content.
How do you use content marketing for your business? What percent of your overall marketing budget is used for content creation and promotion?
About the Author: Ryan Malone is the founder and CEO of SmartBug Media, a strategic inbound marketing agency and Hubspot Gold Partner based on Southern California. Go Lakers.