“How much should I spend on my content marketing?” It’s a question that many business owners consider, but few want to ask.

Instead, they hold the question to themselves:

“If I ask, they’ll try to upsell me.”

“I should be the one to know how much I ought to spend.”

“What if I waste my money? … What if I don’t spend enough to get any significant results?”

Making any kind of an investment in your business can feel risky. Plus, when you outsource a content strategy, you’re also putting your brand (your hard-won brand equity!) into the hands of… outsiders!

So, how do you know (1) how much to spend on content marketing and (2) who to trust with your budget and your brand?

A new infographic from Point Visible provides valuable insights into the current state of content marketing (2017).

While the entire infographic is worth scanning through, we’re going to focus on just the final section (Budget & Spending) in this blog post. As for knowing who to partner with, use this list of 27 questions to ask a digital marketing agency as a guide in your search.

Content Marketing Budget & Spending

B2B content marketers expect their spending to be affected in the following ways in 2017:

  • 45% – remain the same
  • 39% – increase
  • 14% – unsure
  • 2% – decrease

On average, content marketing accounts for 29% of B2B marketing budgets.

B2C content marketers expect their spending to be affected in the following ways in 2017:

  • 42% – remain the same
  • 39% – increase
  • 17% – unsure
  • 2% – decrease

On average, content marketing accounts for 26% of B2C marketing budgets.

Fast Facts:

  • 28% of marketers have reduced their advertising budget to fund more digital marketing.
  • 69% of companies report their video marketing budget is increasing.
  • 75% of marketers are increasing investment in content marketing
  • Content marketing will be a $300 billion industry by 2019 – this means it will more than double in under four years.
  • Total digital ad spending in 2017 will equal $77.37 billion, or 38.4% of total ad spending.

Our Content Marketing Budget Formula

So, how much should you spend? If you’re new to content marketing, consider allocating 25 to 30% of your total marketing budget. The U.S. Small Business Administration recommends companies doing under $5 million a year in sales consider spending 7-8% of gross revenue on marketing and advertising.

So, if you are a small business that does $500,000 in sales per year, your total marketing spend might be $37,500, of which 30% ($11,250) may go to content marketing. This is a conservative estimate, and many businesses can (and do) benefit from scaling these figures considerably. That being said, use this formula to estimate your spend:

[$ annual revenue] x 0.075 x 0.3 = [$ annual content marketing budget]

Do you currently invest in content marketing? If not, what’s kept you from trying it? We’d like to know! Leave us a comment below.

Key Highlights: What the Infographic Reveals

  • Content Marketing Investment Growth: 75% of marketers are increasing investments in content marketing, showing its growing relevance and effectiveness in 2017.
  • B2B Budget Insights: On average, B2B companies allocate 29% of their marketing budgets to content marketing, with 39% planning increases.
  • B2C Budget Insights: B2C companies dedicate 26% of their budgets to content marketing, with 39% also planning increases.
  • Digital Budget Reallocations: 28% of marketers have reduced traditional advertising budgets to fund more digital strategies.
  • Video Marketing Surge: 69% of companies report increased budgets for video marketing, underlining its growing importance in digital strategies.
  • Future Growth Projections: Content marketing is projected to be a $300 billion industry by 2019, doubling in less than four years.
  • Practical Budget Formula: Small businesses can allocate 7-8% of gross revenue to marketing, with 25-30% of that going to content marketing.

Comparison of Digital vs. Traditional Advertising Spend

The advertising world has experienced a significant shift in recent years, with digital advertising quickly overtaking traditional channels.

Here’s a breakdown of how digital and traditional advertising compare:

1. Cost-Effectiveness

  • Digital: Digital advertising tends to be more budget-friendly, offering options for pay-per-click campaigns or social media ads that start as low as a few dollars. It allows for scalability and cost control.
  • Traditional: Traditional advertising, like TV commercials, radio spots, and print ads, often comes with higher upfront costs and fewer options for small-scale campaigns.

2. Targeting Capabilities

  • Digital: Digital platforms provide advanced targeting features, allowing advertisers to reach specific demographics, behaviors, and interests with precision.
  • Traditional: Traditional ads target broader audiences, relying on geographic location or general audience characteristics, making it less personalized.

3. Measurement and Analytics

  • Digital: With tools like Google Analytics, social media insights, and conversion tracking, digital campaigns offer real-time performance metrics and detailed data for analysis.
  • Traditional: Measuring the ROI of traditional advertising can be challenging, often relying on estimations or indirect feedback.

4. Reach and Engagement

  • Digital: Digital ads can reach global audiences and foster direct engagement through likes, comments, and shares.
  • Traditional: Traditional ads often excel in local reach but lack the immediate interaction that digital provides.

5. Adaptability

  • Digital: Campaigns can be quickly adjusted based on performance data, ensuring continuous optimization.
  • Traditional: Traditional ads require longer lead times for changes, making them less flexible.

Industry-Specific Content Marketing Strategies

Every industry has unique challenges and opportunities when it comes to content marketing. Tailoring strategies to industry-specific needs is crucial for maximizing impact:

B2B (Business-to-Business)

  • Focus on thought leadership through white papers, case studies, and webinars.
  • Use LinkedIn and industry-specific blogs to engage decision-makers.
  • Leverage long-form content like guides to address specific pain points.

Retail and E-commerce

  • Highlight product reviews, user-generated content, and interactive shoppable media.
  • Use social media platforms like Instagram and Pinterest to showcase products visually.
  • Optimize for local SEO to attract nearby customers.

Healthcare

  • Create educational content like infographics, blogs, and explainer videos about health topics.
  • Focus on building trust through patient testimonials and transparent practices.
  • Use email newsletters to provide personalized health tips and updates.

Technology

  • Develop how-to guides, tutorials, and technical blogs to educate the audience.
  • Invest in video marketing for product demos and explainer videos.
  • Use content to highlight innovation and position your brand as a forward-thinking leader.

Travel and Hospitality

  • Create immersive visual content like destination guides and virtual tours.
  • Use social proof in the form of customer reviews and influencer partnerships.
  • Take advantage of seasonal trends and timely promotions in your content strategy.

Finance and Insurance

  • Focus on financial literacy with blogs, calculators, and eBooks.
  • Develop trust with customer success stories and transparent content.
  • Use LinkedIn and email marketing to target professionals with financial products.

Wrapping Up

Content marketing continues to prove its value, with increasing budgets and more businesses prioritizing it in their overall strategy.

Whether you’re a B2B or B2C company, allocating a significant portion of your marketing budget to content can drive measurable results. Use data-driven insights and budget formulas to refine your spending and maximize ROI.

The shift to digital marketing is clear—invest in content strategies to stay competitive and relevant in this dynamic market.