In the digital age, content marketing has become a vital strategy for B2B SaaS companies. It allows them to establish their authority in the industry, build a loyal audience, and generate leads. Despite the talks of a recession, the growth of content marketing in the B2B sector, particularly in 2023, is undeniable.
According to a report by the Content Marketing Institute, B2B content marketing is growing rapidly, with 91% of B2B companies using content as a part of their marketing efforts. Moreover, 69% of marketers actively invest time in SEO.
In the research, a few B2B marketers were asked: “If you could change one thing about content marketing in your organization, what would that be?” Some of the common responses were:
- Executive-level awareness and support
- A content marketing strategy
- More budget and additional staff
- More access to subject matter experts
- Better technology
- Better measurement
- Greater alignment between marketing and sales
When it comes to budgeting for content marketing, there are several factors that B2B SaaS companies should consider.
This comprehensive guide aims to provide these companies, regardless of their size, with a robust framework for budgeting their content marketing efforts effectively.
By considering various factors and industry benchmarks, companies can allocate their resources strategically and maximize the impact of their content marketing strategies.
Factors to consider when setting a content marketing budget
As a B2B SaaS company, we recommend setting a content marketing budget based on factors that will impact your operations, short term and long term goals, and the resources available to you.
While you can always customize your content marketing budget working with Contensify, here’s what you need to look into:
The more obvious ones
1. Business size, age, and industry
The size and age of a company, as well as the industry it operates in, play a significant role in determining the budget for content marketing. Startups and smaller companies may have limited resources compared to established enterprises. Consequently, their budgets may need to focus on prioritizing high-impact initiatives initially. Alternatively, larger businesses may have more resources available to allocate toward content creation and distribution.
2. Goals and objectives of the content marketing strategy
Clearly defining your goals will help determine how much investment is needed in terms of both time and money. For example, suppose the goal is to increase brand awareness. In that case, a larger budget may be required to create high-quality blog posts, case studies, videos, or whitepapers that resonate with your target audience.
3. Types of content created
Different types of content, such as blog posts, case studies, videos, and whitepapers, require varying levels of investment. Videos tend to be more expensive than blog posts, while case studies can involve additional costs such as conducting research or interviews. Moreover, the budget should reflect the chosen content formats and their production costs. Additionally, consider the expertise and resources needed to produce high-quality content that resonates with the target audience.
4. Distribution channels
Choosing the right channels is paramount to effectively reaching the intended audience. These channels may include social media platforms, email marketing, messaging apps, and industry-specific platforms. Each channel may require specific resources and investments. Carefully assess the channels that align with your target audience’s preferences and behavior. You wouldn’t want to target a teen/early adult with emails, right?
5. Frequency of content creation and distribution
Consistency is key in content marketing. Determining the desired frequency of content creation and distribution helps establish a realistic budget. Consider the resources required to maintain a steady flow of content while maintaining quality standards. Social media also plays a significant role in building a holistic content marketing budget.
7. Remarketing/retargeting/paid ads/demand generation
To nurture leads and drive conversions, consider incorporating remarketing, retargeting, paid ads, and demand generation campaigns into your budget. Tailor these efforts to match the different stages of the marketing funnel. Allocate resources to optimize these campaigns to enhance conversion rates and ROI.
In addition to the more commonly recognized challenges, some less obvious ones require careful consideration and attention. Contensify can play a significant role in addressing these overlooked challenges effectively.
The overlooked ones
1. The cost of ongoing content optimization and maintenance
Content optimization and maintenance, including Search Engine Optimization (SEO), content updates, and performance tracking, are ongoing processes. Allocating a portion of the budget for these activities ensures long-term success. Consider the investment required to analyze data, identify optimization opportunities, and make necessary adjustments to maximize the content’s impact.
2. Resources available in-house vs. outsourcing
Assessing the availability of in-house resources and expertise helps determine whether outsourcing certain content marketing tasks, such as content creation or design, is necessary. The budget should accommodate outsourcing costs if needed. Evaluate the balance between leveraging existing capabilities and supplementing them with external expertise to optimize the effectiveness of your content marketing efforts.
3. Training and professional development
Investing in training and professional development for employees or freelancers can enhance the effectiveness of content marketing efforts. Budgeting for ongoing training programs and skill development initiatives is essential, depending on bandwidth and company attrition rates. This enables the team to stay updated with industry trends, best practices, and emerging technologies, allowing for continuous content creation and distribution improvement.
How much content marketing budget does your B2B SaaS company need?
According to the Content Marketing Institute, while the average total marketing budget spent on content marketing is 26%, the most successful organizations spend 40%.
Now, as mentioned before, there are multiple factors taken into consideration while making a content marketing strategy. But here are three sample budget breakdowns for small, medium, and large B2B SaaS companies for your reference:
1. Small B2B SaaS Company
- Content creation and distribution: 30%
- Content optimization and maintenance: 25%
- Distribution channels and paid ads: 15%
- Training and professional development: 20%
- Miscellaneous (tools, software, etc.): 10%
2. Medium B2B SaaS Company
- Content creation and distribution: 35%
- Content optimization and maintenance: 20%
- Distribution channels and paid ads: 20%
- Training and professional development: 15%
- Miscellaneous (tools, software, etc.): 10%
3. Large B2B SaaS Company
- Content creation and distribution: 40%
- Content optimization and maintenance: 15%
- Distribution channels and paid ads: 25%
- Training and professional development: 10%
- Miscellaneous (tools, software, etc.): 10%
It’s important to note that these percentages are approximate and can be adjusted based on specific business needs and goals. Also, remember to:
- Set realistic budget goals: Considering your financial constraints, budgets, and ROI,
- Track and measure performance: Monitoring metrics and adjusting budget allocation is never going out of style,
- Leverage technology and tools: Maximize efficiency and ROI while making your work simpler,
- And stay agile: Flexibility in budget allocation and adaptation to market trends plays a big role in how your content marketing strategies and budgeting will look.
Why is content marketing worth investing in?
If you’re wondering whether you should set aside a content marketing budget, let’s look into the quick benefits of this tactic for your business growth:
1. Build your own audience
Content marketing allows B2B SaaS companies to directly attract and engage their target audience. By consistently delivering personalized content, companies can build a loyal following and generate organic leads. Over time, this audience becomes an asset, driving brand loyalty, customer retention, and advocacy.
2. Establish authority
Sharing insightful and informative content positions B2B SaaS companies as industry thought leaders. By demonstrating expertise and providing valuable insights, companies can build trust and credibility among potential customers. This, in turn, makes it easier to convert leads into paying customers.
3. Lowers advertising costs
Effective content marketing reduces the need for extensive retargeting efforts. By nurturing leads with valuable content, companies can move them further down the marketing funnel, minimizing the reliance on expensive retargeting campaigns. A well-executed content marketing strategy ensures that prospects are educated and informed, increasing the chances of conversion.
4. Strategic content enables multiple functions
Well-crafted content can benefit various departments within a B2B SaaS company. Sales teams can leverage content to educate prospects; support teams can provide self-help resources, and product and development teams can gather insights for product improvement. This multi-functional approach maximizes the value and impact of content marketing efforts.
Do you have your content marketing budget set?
Budgeting for content marketing is essential to a B2B SaaS company’s growth strategy. It enables audience building, establishes authority, lowers retargeting costs, and supports multiple business functions. By following the framework outlined in this guide, B2B SaaS companies can maximize the impact of their content marketing efforts and stay ahead in a competitive landscape.
In conclusion, B2B SaaS companies should recognize the importance of budgeting for content marketing and seize the opportunity to invest wisely in this powerful strategy.
With the right budget allocation, commitment to quality content, and ongoing evaluation, these companies can drive growth, engage their target audience, and stand out in the market.
Not sure what content marketing budget suits your B2B SaaS company?