When working with content marketing, you want to know if your investment has paid off or not. This is where content marketing ROI is super crucial for you and your business. By calculating your ROI, you can prove whether a blog post or tweet contributed to the bottom line.
In the following, we will learn about content marketing ROI, what metrics to measure and how to calculate your ROI.
What is content marketing ROI?
Content marketing ROI refers to the percentage of how much revenue you gain from your content marketing in comparison to how much you have spent on creating and distributing the content.
ROI is a crucial metric to measure, as it is directly tied to revenue.
However, if nobody is viewing, sharing or responding to your content, it will not generate any revenue for you. Thus, it is important to ask critical questions to your content marketing ideas.
- Why will anyone care about this content?
- Is the story easy to understand?
- Does it add anything new to a topic?
- Will it match the overall brand perception?
Important content marketing metrics to consider
In order to track how successful your content marketing efforts have been, you need to specify which metrics to measure upon. There are seven key content marketing metrics that matter; lead quality, sales, web traffic, onsite engagement, social media engagement, SEO success, and exposure & authority.
- Lead Quality: Great content will attract an audience that will generate leads. You can tell if your content is working if visitors contact your sales team to ask pre-sales questions.
- Sales: Look at how many of the leads that turn into sales as well as the value of those sales.
- Web Traffic: Dive into your data in Google Analytics to see how much traffic your content generated. Without traffic, there is no revenue.
- Onsite Engagement: Content marketing is all about keeping users on your site. If you have a low bounce rate and a high avg. time on site, you know your content is working well and on the way to generate leads for you.
- Social Media ROI: Keep track on social media engagement and referral traffic, as a lot of purchase decisions are influenced by peer recommendations.
- SEO Success: Analyze how well your content performs on search. Most people click on the top results in search engines. More clicks equals more traffic, which increases the potential for leads and sales.
- Exposure & Authority: The more people see you as an authority, the more likely they are to share and link to your content. This increases the reach of your content and thus improve the potential for generating leads and sales.
How to measure your content marketing ROI
If you have no idea on how to measure content marketing ROI, we are here to help you! Below, you will find a simple formula to weigh the cost of your content against the revenue you earn.
How much did you spend on producing the content?
If you produced the content in-house, there is still a cost attached. Include the salary of the content creator to your calculation. If you spend money on production, such as videos, audio or images, include this in the calculation.
Include the cost of distributing the content
Include any paid promotions you have spent money on, this could be PPC advertising and/or social advertising. If you used any special tools or software required for the creation or distribution, include it as well.
These expenses will give you the true cost of producing your content.
Work out the amount you got in return
If your content is a successhas worked will, it will have given yougenerate leads that turnsned into sales. Add up all the sales that resulted from your piece of content, and you will know exactly how much you earned.
Now calculate your content marketing ROI
We are following the content marketing ROI formula from Convince & Convert. The formula is as followed: “Return minus investment, divided by investment, expressed as a percentage”.
An example could be; you spend 2.000 EUR on creating the piece of content. This generates leads worth 6.000 EUR. Therefore, your ROI would then be 200%.
This is how we did it:
- 6.000 EUR – 2.000 EUR = 4.000 EUR
- 4.000 EUR / 2.000 EUR = 2
- 2 X 100% = 200%
Keep in mind: if you spend less on producing and publishing the content than you earn in sales, then your content marketing efforts have been worth it!