Knowing about its ROI (return on investment) is mandatory if you have invested in content marketing. Content marketing ROI calculation refers to analysing the percentage depicting the revenue you are likely to generate from your investment in content marketing. It is a way to ensure that your current content marketing strategies are successful and in the right direction of success.
Are you seeking content writing services? Evaluating the Content Marketing ROI will be helpful for your business's future.
What is Content Marketing ROI?
Content Marketing ROI is a percentage used to depict the amount of revenue one gained from a company in terms of content marketing. It is compared to the amount spent on developing such content. When the percentage is high, it ensures that individuals successfully attract leads with the marketing and promotional content.
Steps for Content Marketing ROI calculation
If you struggle with content marketing ROI calculation, you can try the following formula. It is a popular formula commonly used in businesses. The answer is generated in percentages.
Content marketing ROI In percentage=Return-InevtsmentInevtsment x 100
Step 1: Calculate the amount spent on content marketing
Firstly, consider all the factors in completing your content market and estimate the amount spent on these. List out the areas of expenditure, such as the payments of the content creators, videos and photography costs, work from other departments, etc.
Step 2: Calculate the cost of distrusting content
In this process, do not forget to consider the in-house costs of content marketing. These include the expenses of placing PPC advertisements on Google or other search engines and social advertising. Moreover, if your team used any special tools or software to spread the content, you should include its expenses here.
Step 3: Direct calculation of sales from content
In this step, you need to accumulate and add up all the sales that you made for a product from a particular piece of promotional content. In some cases, people click on the call-to-action areas of your content to purchase products. This makes it easier to track your leads and their conversion.
Step 4: Calculate your content marketing ROI
Now that you have all the components put them into the formula to calculate the results. This will help you analyse the percentage of returns you received upon an investment made on the content for promoting your products and services. If the percentage is high, it means your content marketing is successful.
For instance, if your content generation was valued at $300, and you generated about $1200, the ROI will be as follows.
$1200-$300 = $900
$900/$300 = $3
3 X 100% = 300% (ROI)
Best Marketing Metrics to Consider
Now that you know ways to calculate content marketing ROI, it is important to identify the best marketing metrics to keep you updated on your content. Maintaining these metrics will help you ensure that the quality of content can attract leads.
Quality of leads
The main purpose of content marketing is to generate leads for the products and services. There are multiple ways to check lead generation. For instance, you can check the views on a video or reactions on a social media post to analyse if people might be digging your content. The next activity would be to check Google Analytics and analyse if people might be visiting the official website and checking out the products and prices after watching or reading the content.
Sales growth
If you have a basic idea of lead generation from your content, you can evaluate growth in sales based on this. Checking the lead conversion rates here will give you a better idea about the number of people who purchased your products after coming across your content. If this number increases, it naturally means that your content marketing and promotions successfully attract customers and generate ROI.
Web traffic
As of now, website traffic is one of the best metrics to check the success of marketing. This is because the leads are most likely to visit your official website after finding your content interesting. From Google Analytics, you can go to the Behaviour section and click on Site Content. Here, you can analyse the pages that most leads land on after searching for your products or services on a search engine. Here, you can compare the increase or decrease in your web traffic.
User engagement
It is not sufficient to bring the leads to the official website. You also have the role of ascertaining that they stay here. For this, it is advisable to check the bounce rate of your content and website. It would help if you made sure that the bounce rate is low, which means people are spending more time reading and checking out your content. You can also check the Overview option from the Audience section in Google Analytics. It will help you ensure that
Social media ROI
When it comes to offsite engagement of customers, social media can be a powerful tool for content marketing. You can track social media engagement by analysing the reactions and views on your posts shared on platforms like Facebook, Instagram and Twitter. You can also check Network Referrals from Google Analytics to understand the communication and engagement of users on your social media platforms. If your contents succeed in connecting with the audience, it will drive them to check out your official website.
SEO development
Search engine optimisation (SEO) is one of the most common practices in recent times for enhancing web traffic. Using target keywords and optimising these effectively in your content will help you crawl in the first few results on a search engine. You need to ensure high domain authority and get inbound links from other websites. In this regard, constant research is mandatory. This will help you reach users' search results based on relevant terms.
Benchmarking for success
It is essential to consider various metrics and benchmarking tactics to analyse the content marketing ROI. These metrics will help you ensure that the promotional content created for your company can generate sufficient ROI. For example, evaluating the number of leads, conversion, and web traffic are popular metrics that you can easily track regularly.
However, there are some benchmarks which are difficult to track. For instance, earned media is often considered a blind spot for benchmarking content marketing ROI. In this regard, you can consider the mentions from contributors and including guest posts on the official website can be useful for boosting your reach and targeting new leads.
Moreover, there are areas like organic search referrals. Unlike the overall web traffic, it is much more difficult to track. You need to monitor the reactions and reviews of users on various content published to analyse the same.
Thus, as you can see, content marketing ROI calculation can be a complicated process. However, it is essential to monitor and supervise the success of content marketing for a company. Furthermore, as this article observed, maintaining the ROI will be essential for business owners to avoid making any financial loss in this process.
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