4 reasons good marketing content is an asset not an expense

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Like most business people, you probably see your content – web, flyers, e-newsletters, social media etc – as a necessary overhead. And when you put your annual budget together, your marketing is listed as a cost code under “expenses”.

But things are not that clear cut – and if you consider your marketing content as an expense, you are missing the point (tax man notwithstanding).

From a practical consideration a business asset is defined as something a business owns that delivers ongoing results (like plant and machinery, or computer hardware) while an expense is something incurred in order to generate revenue (lease payments, utility bills etc). So,on the face of it, it does seem that marketing content is an expense.

And when you do your annual report profit and loss statement, you probably take note of the international accounting standard IAS 16 which states “an item of property, plant and equipment should be recognised (capitalised) as an asset if it is probable that the future economic benefits associated with the asset will flow to the entity and the cost of the asset can be measured reliably. Future economic benefits occur when the risks and rewards of the asset’s ownership have passed to the entity”.

Content, however, is not a tangible asset. It is not something you can feel, or touch. But as a piece of intellectiual property, it is an intangible asset.

Taking aside the accounting gobbledegook (and whether the Australian Tax Office will let you write down marketing content at tax time), it is important that YOU consider it an asset when deciding whether to invest in a copywriter.

Here are five reasons why:

Good marketing content adds both tangible and intangible value, well into the future: Say you have worked with a copywriter to prepare a white paper, or a capability statement. These days, documents such as this can be uploaded on the your web site – and others – allowing you to set yourself up as a subject matter expert and attract new customers or clients everyday. Not to mention the obvious ongoing benefit of good web copy, with a clear conversion funnel and call to action.

Good marketing content needs expert attention: Australian workplace laws require you to appropriately train staff to operate plant – no-one is allowed to drive a forklift with out the right ticket – so its important not to leave your content in the hands of an inexperienced junior.  And the better you manage your content, the more valuable your return on asset will be.

Good marketing content needs maintenance: Like a piece of plant, good content needs to be maintained as your business grows and evolves. This separates it from an “expense”, which is a one-off cost and will not need a budget for maintenance. And, going back to accounting terms, without maintenance,  your asset will rapidly deteriorate.

Good marketing content  is in it for the long haul: When you buy stationery, or petrol, or pay your utility bill, you know you are going to have to buy it again when it runs out (or the next bill is due), but apart from the ongoing maintenance, good content is one-off expense that can be used and repurposed time and again (until your business model changes anyway!).If you get in an expert who can get it right the first time, the cost of the asset will pay for itself, over and over again.

If you need to talk to a copywriter that can deliver good marketing content that is an asset to your business, contact me today.

Till next time

Nicole