Content marketing is becoming increasingly popular with business owners and marketers alike.
Content marketing is an online marketing strategy that creates and distributes content to attract potential customers. Strategic content marketing will increase the number of quality leads for your business. Using it to attract customers is 38% cheaper than other types of marketing.
Content marketing has emerged as a counterweight to advertising. The full emphasis on advertising is a thing of the past. Now too many companies are competing for consumer attention, they want to be a part of the customer journey and this can only be achieved through content marketing.
The battle of effectively reporting on content marketing is not limited to marketing managers. It affects everyone who is involved in creating and executing a content-marketing campaign. It’s hard to prioritize which metrics to focus on, and it can be very discouraging if you aren’t getting the results you want.
You need to know the exact impact of your efforts in order to improve them and also to make a more compelling case for your boss or client when you go to them with your suggestions. Once you know the exact return on investment (ROI) of your efforts, it will be easier to hone in on what works and to beat the competition.
Below, we analyse the main components of evaluating content marketing ROI and how they tie in with your wider business goals.
What is content marketing ROI
The ROI for content marketing is how much profit your company makes from content marketing compared to the amount it costs to create and maintain that content.
Mathematically, it is represented:
Content Marketing ROI = [(Revenue – Total Cost)/ Total Cost ] x 100
Return on investment (expressed as a percentage) is an important measurement of marketing success since it is directly linked to revenue.
Content marketing generates a high return on investment for both B2B and B2C marketers.
Content marketing is the future of direct marketing. It benefits B2B and B2C marketers alike. Industry data suggests a steady increase in ROI as content marketing creates an almost endless supply of leads and sales for businesses.
Which Metrics Should You Track?
Should you use the number of leads generated by your landing page, number of conversions or number of people who commented as your content marketing metrics? Some B2B marketers use the number of page views, new customers, organic traffic generated on search engines to measure overall content marketing ROI. Case studies show that you don’t need to limit yourself to just one or two key metrics. You should be tracking as many metrics as you can think of that would be relevant to your marketing efforts.
It’s important to remember that you’re always tracking metrics for vanity’s sake if you do it just because it’s “cool” to have a big report to present to your boss. Tracking metrics for vanity’s sake will only eat into your time and distract you from the real work at hand.
The best way is to ask yourself these 2 important questions when choosing the metrics you want to track:
- How are these measurements related to my business goals?
- What actions can I take knowing these metrics?
As your business and content strategy evolves, don’t forget to adapt which key actionable metrics you are tracking. It’s also important to remember you should always have goals in place. Having goals helps you stay on track, and helps you see what direction you should be heading in.
Why Measure Content Marketing ROI?
If you aren’t measuring your content marketing efforts accurately, you are putting the cart before the horse.
First, you need to know what’s working so you can focus on increasing its effectiveness. Only then should you start thinking about ways to creatively enhance it.
Consider this a “stop doing” and start “knowing” movement.
When you measure and report on your content marketing accurately, you remove much of the mystery from the process and create more clarity and certainty about what works and what doesn’t.
This allows you to focus more clearly on what matters most – the success of your efforts.
Measuring Content ROI for Executive Buy-In
The other KPI’s are nice, but honestly, the only metric your senior management team (especially your CEO and your CFO) cares about is the return on investment of your marketing efforts.
They are concerned about the company’s bottom line.
You must always measure your content marketing ROI, or you won’t get budget approval for your campaigns. Show your executives the money. That will motivate them to support your efforts.
If you have an existing content marketing program, you’ll need to determine what type of lift you’re getting from your current efforts and use that information to inform your decisions about what to do next.
If you do not, you’ll need to provide your executive team an estimate of your likely ROI based on a few assumptions.
Calculating the value of your leads
As many content marketers and sales team splace a high importance on the number of sales or marketing qualified leads (SQLs or MQLs) generated by their campaigns, let’s use your leads as an example of the metric you want to measure.
Let’s say you sell educational courses and Google analytics measured the following parameters:
- Price – $2000
- Leads generated per month – 400
- Sales conversion rate – 5%
The monthly income generated by your content marketing campaign
= $2000 x 400 x 0.05
Let’s assume that your total content marketing campaign cost (conclusive of content creation and content dissemination) is $7000
Your Content Marketing ROI:
= [(Revenue – Cost)/ Cost] x 100%
= [($40,000 – $7000)/ $7000] x 100
Explaining the figures in this manner to the decision makers makes it a lot more understandable to them. As you are speaking their language, you will be addressing their concerns. They will more likely be able to justify approving your budget request.
Methods To Increase Content Marketing ROI
Below, we discuss methods to increase your content marketing ROI.
1. Sales Promotion Through Content Strategy.
What do consumers do before buying a product or ordering service on the Internet? Most of them go through a sales process and make a decision after studying the product information, reading the recommendations, and reviews of other customers. The advantage of using a content marketing ROI strategy is the ability to influence your consumers’ decisions.
First, users look for a description of a product and useful articles on the topic. By sharing such content on your website or blog posts, you are taking the first step to attract the attention of consumers to your products or services. With the help of a marketing specialist, you can be able to increase the demand for your products.
2. Strategic Content Marketing And SEO.
One of the most reliable and effective methods of website and business promotion is search engine optimization. However, the combined use of SEO and content marketing campaigns has a double effect. The higher the position of your site in organic search results, the more noticeable it is for buyers.
To reach the top places, you need high-quality content. Using specialised marketing tools like Google Search Console, you will get significant advantages that will promote your site ranking and reduce your bounce rate.
3. Lead Generation And Content Marketing ROI.
Business does not work without advertising. Even if you have the best products and services, you will not be able to make sales because no one knows about them. For more people to know about you, you need to invest in strategic marketing.
Valuable content for users contributes to lead generation. If you publish articles or news that is useful and interesting to your visitors on the site, users will be willing to subscribe for updates. People leave their email address in exchange for white papers or the opportunity to receive your recommendations.
The presence of blog content on a commercial website is an opportunity not only to retain the attention of visitors and improve behavioral factors but also to motivate them to subscribe. Quality information in form of text, images or video can generate leads more efficiently and faster than traditional ads can.
4. Formation Of The Image Of The Company And Trust In It.
To build relationships with the target audience, you must post reliable information about your organization, its history, philosophy, values, and achievements. This type of content affects the perception of consumers and helps to increase confidence on their part.
People prefer to buy goods or order services from companies that they know. It is natural to use this as a benchmark of content marketing success. As such, it is prudent to hire an online marketing expert to help in building a loyal attitude and create the right interaction with the target audience.
5. Brand Positioning Through Content Marketing Strategy.
Informative and vivid product descriptions are necessary to attract users’ attention. The advantage of hiring a strategic content expert is the ability to position your organization as a leader in its field and a reliable partner.
With the help of texts, you can convey to the target audience important information about your products or services and also tell them about their value to customers. A content strategy can be used to solve various business problems. It is a flexible and dynamic promotion tool with which you can secure a competitive advantage.
Unmeasurable KPIs and ROI Calculations
Let’s face it, even if you do everything right, it can be difficult to put a dollar value on some aspects of your marketing efforts. Nonetheless, you can and should measure those aspects that can reveal the extent to which you are making progress or impacting growth.
Even though proxy metrics are flawed when it comes to measurement precision, they can still be useful indicators that you are on the right track.
Many marketers have doubts about the some important key performance indicators (KPIs) when it comes to content marketing. If you’re not 100% clear about which ones are important to you, create your own content scoring system. It’ll keep you focused on the crucial areas and help you create more effective, higher-performing content.
Examples of unmeasurable metrics are brand awareness, customer satisfaction, value of earned media, user generated content and reviews. These are all aspects of your customer base that you can’t directly measure, but which you should still be tracking as a key indicator of progress.
You may want to use key directional indicators to assign values to every micro-conversion along your online sales funnel. This will allow you to measure the profitability of each individual link in the chain, and it will help you to prove the profitability of your content marketing efforts to your boss or client.
Cost-Effective Way Of Advertising
Content marketing is a digital campaign technique that does not burn a hole in your pockets in order to get a positive ROI. A strategic internet marketing process is compounded with time. During the initial stage, the process may not yield a lot of returns, but after some time, the impact of your content marketing efforts become more apparent. This method of digital marketing is among the best because it will offer you long term and reliable results.
Content Marketing: Who Needs It And Why?
It turns out that everyone needs it. Experts believe that soon, competitive advantages will not be to those who invest more in direct advertising, but those who fill their site with valuable exciting and useful information.
The most crucial advantage of promoting content is individuality. Each organization communicates with its customers in different ways. If you invest in a reliable online marketing strategy, people will be interested to know more about your brand. Even if they do not buy, they can share a link or comment on an article.
When visitors share links, it creates an atmosphere of trust around the site and the company it represents. This is a recommendation to visit the resource, a sign of social assessment.
The more the company devotes energy to strategic marketing, the better the result, which is expressed not only in sales but also in the field of public relations. Ultimately, image and reputation are the best sellers, and they are converted into long-term profits.
With the help of content marketing, you can significantly reduce the cost of brand promotion. It will widely be promoted “independently.” The image of an expert in his field will become part of the halo that any real brand should surround.
Engaging A Content Marketing Agency
Is an “age of content” inevitable? It sure is.
That is why content marketing is growing at such a fast pace.
Through the exciting and useful great content of sites and network communities, more and more B2b and B2C companies are gaining much traffic and better results when attracting customers. This is especially true in areas of high competition where insightful pieces of content can establish players as authorities in their field.
In a nutshell, we can conclude that if you want to thrive in this internet based society, it is prudent to focus on increasing your content marketing ROI. Hiring an expert will help your business grow by increasing leads, stimulating sales, and building the trust and image of your business. Internet marketing is a flexible and dynamic promotion tool with which you can secure a competitive advantage.
For more information, contact Blazing Conversions Content Marketing Agency. We look forward to hearing from you.