Simplifying Content Budgeting for Businesses of All Sizes and Industries

29 Mar 2023 Simplifying Content Budgeting for Businesses of All Sizes and Industries

When it comes to building a content marketing strategy for your brand, determining the right budget can be challenging. The amount you should allocate for content creation depends on various factors, such as your business size, age, and industry. This article will break down content budgeting by business size, explore industry averages, and provide seven key tips to help you make the process smoother and more effective.

Content Budgeting by Business Size

On average, businesses allocate 8.7% of their total revenue for marketing (Gartner’s Annual State of Marketing Budget and Strategy and Deloitte’s CMO Survey ). However, this percentage varies significantly based on factors such as the size, age, and industry of the business. Let’s explore the different categories to understand how budgeting practices differ among them.

• New businesses: New businesses, especially those new to content marketing, should start with a smaller budget and scale up as they identify effective strategies. Before setting a budget, develop a content strategy to guide your efforts, including goal-setting and necessary investments to achieve those goals. Consider the average industry spending to determine your brand’s budget. For example, a solopreneur consultant might allocate a portion of their annual revenue for marketing based on industry standards. Keep in mind that a budget sets a limit, not an obligation to spend every penny. Look for ways to save initially, such as managing content yourself and hiring contractors on a limited basis. Begin with essential tools, like keyword research, free analytics tools, content management systems, and content calendars. As your business grows, consider expanding your budget to hire dedicated content staff or a full-service agency.

• Small-to-medium-sized businesses (SMBs): SMBs can make smarter investments in content marketing, such as building a content team in-house or outsourcing. Regardless, having dedicated personnel for content creation and campaign management is essential for consistent, successful content. Budgeting annually or quarterly depends on various factors, including industry averages and competitor activities. Determine the necessary investment to match or surpass competitors’ efforts. Typically, small businesses allocate $5,000 to $15,000 per month for marketing, with 25-30% of that amount dedicated to content.

• Large enterprises: With a larger budget, large enterprises can invest heavily in content marketing for fast and lasting results. They can assemble comprehensive in-house content teams, provide advanced training, and utilize top tools to publish high-quality content consistently. Additionally, they may engage agencies to fill in gaps, such as paid media and promotions. However, securing buy-in from higher-ups within larger companies can be challenging, often resulting in budgets similar to small-to-mid-sized businesses. Despite these constraints, marketers can still achieve effective results by developing a well-crafted content strategy and focusing on high-impact initiatives. By industry standards, an enterprise with a $10 million revenue could allocate $870,000 per year to marketing, with 25-30% (about $217,000) going to content initiatives. However, self-reported numbers indicate that most enterprises spend around $425,000 annually on content.

Industry Averages for Content Budgeting

Here’s a quick overview of the average content marketing budgets across various industries, represented as a percentage of total revenue as per Gartner’s Annual State of Marketing Budget and Strategy and Deloitte’s CMO Survey :

• Service consulting – 21%
• Healthcare – 18%
• Retail wholesale – 14%
• Manufacturing – 13%
• Financial services – 10.4%
• Technology – 10.1%
• Communications media – 10%
• Travel and hospitality – 8.4%
• Consumer goods – 8%
• Transportation – 6%
• Consumer services – 6%
• Education – 3%
• Energy – 1%

 

7 Key Tips for Budgeting Content

Determining a content budget may not be as simple as one might hope, but it doesn’t have to be a daunting task. By utilizing the tips provided, you can streamline the process and ensure that your budget effectively supports your brand’s growth.

1. Set goals and develop a content strategy: Define your objectives and create a plan to determine the best budget for achieving them.
2. Review past spending and analyze competitors: Analyze your previous content expenses and results, as well as competitors’ content marketing efforts, to make informed future budget decisions.
3. Prioritize organic content for low budgets: Organic content marketing is cost-effective and perfect for businesses with limited budgets.
4. Invest for the long-term and adapt to changes: Content marketing is a long-term game, so budget with long-term results in mind and be prepared to adjust your content budget as needed.
5. Hire expert help when needed: If you’re unsure about content budgeting, consider hiring a content strategist or a full-service content marketing agency.
6. Focus on key content channels: Avoid spreading your budget too thin by concentrating on a few important content channels instead of trying to be present everywhere.
7. Monitor, measure, and adjust: Regularly review and adjust your content budget based on performance data to optimize its effectiveness, and be flexible in adapting to changes in the marketing landscape.

 

Content budgeting is a unique process for each business, so it’s essential to consider your industry, audience, goals, content strategy, and available resources when determining the best content budget for your brand. By understanding industry averages and following the tips in this article, you’ll be better equipped to create an effective content budget that helps grow your business.

If you need assistance with your content marketing needs, don’t hesitate to reach out to CaribMedia. Our team of experienced professionals can help you develop a tailored content strategy and provide the support you need to achieve your goals. Contact us today and let CaribMedia be your trusted partner in content marketing.