If you're unsure of what your "cost of sales and marketing" is, consider the following expenses for this metric.
Ad spend is the money you're spending on advertisements. For some businesses, advertising is a great way to attract new customers. For ads to work, your campaigns must resonate with your target audience. If you're not sure whether you're getting a good return on a marketing campaign, you can calculate its value by dividing the revenue that's produced by advertisement by the amount of money you spent on that campaign.
Great employees are always worth the investment. So, pay close attention to how you approach this cost if you feel it's too high. There may be alternative options for reducing money spent on salaries other than issuing pay cuts or layoffs. For example, chatbots and marketing automation can supplement your team's workflow and improve your company's overall productivity.
Creative costs are what you spend on creating content. This could be money spent on acquiring talent to promote your company, or it could be what you spent on lunch for your team meeting. All of these costs factor into content production.
Technical costs refer to the technology that your marketing and sales team use. For example, if you purchased a reporting tool that tracks the progress of your open deals, that would be a technical cost.
Publishing costs are what's spent to release your marketing campaign to the public. This could be money spent on TV air time, paid social media ads, or a spot in a newspaper or magazine.
Production costs are the costs associated with physically creating content. For example, if you're making a video, you need to buy a camera, create a set, edit the video, etc. These costs add up, especially if you're paying a third party to produce your content.
