Unless you have a system to measure the results on your content marketing efforts, you will never know the ROI (return on investment) on your content.
Do you know the ROI on your content marketing?
You will learn three things in this article
In this article you will also learn a couple of other ways to benefit your business from content marketing.
Content marketing ROI is a percentage that shows how much revenue your business has made from content marketing, compared to what you have to spend in creating those contents.
It is one of the most important metrics to measure content marketing success because it is directly linked to revenue?
However, money is not the only effective factor to measure the success of a content marketing strategy. If your content is not driving page-views, visitors aren’t engaging with the content and sharing it, you will not make any revenue.
Therefore it is very important to figure out content marketing metrics to measure the ROI, at an early stage. Towards the end of this article, we will look at 7 important metrics to measure the ROI of your content marketing efforts.
Let's look at the formula to measure content marketing ROI. The formula will help you arrive at exact figures your content marketing is helping you to earn.
The formula to calculate content marketing ROI follows 4 step process.
1. Amount spent on content creation
Here are some of the cost associated with content creation
2. Content distribution cost
Effective content distribution is as important as creating a high value content. If a content is not promoted effectively it may not derive desired results. You are some of the cost associated with content distribution.
You should also include any in house cost involved.
In this step you should add up all the sales that resulted from the piece of content for which you want to measure the ROI.
Often there is a clear link between content and revenue. For example, when a visitor reads a piece of content click the “call to action” and buy something or subscribe to your product.
But in most cases, it takes much longer time for a visitor to arrive at a buying decision. In such cases the relationship between content and sales is not direct and therefore it is very difficult to establish a link between content and the associated sales.
At the end of the article we will look at marketing metrics to measure less obvious marketing connection with the resulting sales.
Here is a formula for calculating the content marketing ROI.
Return minus investment, divided by investment and expressed as a percentage.
For example, if you spend a budget of $1000 on content creation and promotion and get a lead worth $3000, then your content marketing ROI is 200%.
(Return) $3000 – (Investment) $1000 = $2000
$2000 / $1000 = 2
2 x 100% = 200% (ROI)
But how would know the ROI you got from your content marketing was worth the time, effort and money?
The simple rule is that if your earnings in sales are more than the cost you have spent on content creation and promoting it, then it’s worth it. Moreover, the content that you have produced will keep bringing new visitors and sales to your business for the next few months and years to come.
The above examples gives a very basic understanding of how ROI for content marketing should work. Now we will look at some KEY Metrics that will help understand and effectively report on content marketing ROI that makes sense and is in your business interest.
There are many metrics in which we can measure the effectiveness of content marketing. In this article will look at 6 matrix that matters the most in content marketing. These are:
In this article we will look at each of them in detail. But since every business different, you can focus only on those metrics that matter the most for your business depending on the goals.
How would you know which content marketing metrics is important for you to track and which one you can leave out?
As I said it depends on the goals and objective, I will try to explain this with two examples.
To arrive at accurate content marketing ROI, you should plan in advance and set specific goals. you should also have only a few but meaningful metrics to track. Now let's look at each of the metrics listed above.
When we are talking about content marketing, the first rule for great content is one that drive targeted traffic which converts into leads. If your content is not driving the right kind of traffic, it will not convert and will not generate any leads or business. Here are three ways to identify great content:
These are some examples that tell that your content is generating qualified leads. One of the best ways to track if the visitors are qualified is to check whether they are visiting the important pages on your website such as the pricing page.
If your articles are getting a high number of traffic but there is also equally high bounce rate and consequently low conversion rate, It shows that your articles are attracting low quality leads that are not interested in your offerings.
In such a scenario you should again visit your content calendar and cover topic that tries to solve problems your target customers are struggling with.
This is another most important metric that determines the success of any content marketing efforts. This metric measures the quality of leads generated. That means how many of these leads turned into actual sales. Sales are the key number to calculate content marketing ROI.
Content marketing in its most basic form is about generating qualified leads and nurturing them with the right content at the right time, so that when they look for solution for service you are providing they will buy it from you.
You can get the exact number from Google Analytics if you have enable E-Commerce in your Google Analytics.
Navigate to Behavior » Site Content » All Pages
In this section page value column shows that a user visited the state before landing on the goal page or completing an E-Commerce transaction.
Despite everything you have done, if your website fails to drive qualified traffic, it is highly unlikely that your website will generate any leads or business. Before you start any content marketing campaign, you should first configure Google Analytics on your website to check the actual number of people visiting your website. This will help you understand what campaigns are working for and what campaigns are not driving and results.
Google Analytics is also a good way to see how your website’s traffic grows overtime and all the potential sources of your traffic.
This data is very important as it lets you know which source is bringing maximum traffic, what part of campaign is doing really good and what kind of customers are converting really well. With this kind of clarity you can work on things that are really working well and avoid things that are wasting your time.
Content marketing is not only about bring traffic to your website. But the success depends on how your content engage with your customers and qualifies them for sales funnel. If your website has a low bounce rate, it means users are really engaging with your content and are finding it useful.
It is a clear indication that content is working and has the potential to generate leads and sales for your business. Another perfect indication for content success is newsletter subscription. if visitors are taking pain to subscribe to your newsletter, that means your content is really resonating with them.
Search Engine Optimization is the best way to help your potential customers find your business. SEO is the way to optimize your content so that it ranks better on Google search results. No other online activities drive as much traffic as Search Engine Optimization. Here are some matrix to measure your SEO performance:
If you can see and increment to all of four point above with every passing month, it's clear indication that your SEO activities are moving in the right direction And will help you score more leads and sales for your business.
Too many metric will not help you gauge the success of your content marketing efforts. Track only few metrics that matter the most for your business. Your entire content marketing activities should be focused around achieving those metric.