From SEO to content, all marketing expenses must be justified. Even so, it is easier to prove the effectiveness of some forms of marketing more than others. Take PPC for example – you can physically see how much sales you’ve made versus your spend. However, with the ROI for content marketing, this is a little more complicated.
According to 2019, almost two thirds of marketers (57 percent) expect to spend more on content marketing than in the previous year The latest B2C content marketing report from the Content Marketing Institute. The pressure to prove to your boss that content marketing is worth the investment is higher than ever. So, this article describes a few different ways you can measure your strategy. But first…
What are you measuring?
The return on investment (ROI) doesn’t necessarily have to mean cash. This can be anything your company wants to achieve, such as E.g. more leads, increased brand awareness / loyalty, press coverage, organic traffic or something completely different – if you can attribute this to sales or the calculated value.
Don’t expect results right away
Just like with PPC, it can take time and patience before you see real results from your content marketing efforts. Take a look at the following example: This blog has received more than 3,000 pageviews since it was first published in early 2017, but it has taken a while to build the numbers.
After an initial flutter in advertising the post on social networks, you can see that the page views increased gradually in 2017 and 2018. After you’ve updated the article to make it more relevant for 2019 and re-promoting it across different channels, you can see a noticeable fling in the views earlier in the year.
This is a great example of how content marketing can lead to continuous, improved results over time.
7 ways to measure the ROI of your content marketing strategy
Content marketing supports all of your inbound strategies, so success can be measured in different ways. Before you can measure the ROI of a marketing strategy, you need to know which metrics and KPIs indicate success.
Here are seven common ways to measure the ROI of your content marketing strategy.
- Revenue: Allocation of sales and earnings to your content marketing strategy.
- Conversions: Any valuable actions being taken on your website (purchase, email request, phone call, account creation, email sign up, etc.)
- Organic traffic
- Search ranking
- Social commitment: Both organic and paid social results depend on the quality of your content and provide valuable analytics to measure ROI.
- Cost-per-acquisition (CPA): How much does it cost you, on average, to win a lead and turn them into a paying customer?
Some of these KPIs and metrics give you a more reliable picture of your content marketing than others (e.g., revenue and CPA), but they are also more difficult to calculate accurately.
Essentially, it comes down to mapping and the ability to map sales to specific content marketing campaigns and metrics such as traffic to drive sales.
# 1: revenue
Revenue is the most important KPI for calculating the ROI of a marketing strategy. The basic formula for calculating the return on investment is as follows:
ROI = ((Return on Investment) / Investment) x 100
It’s easy enough to keep track of how much you’re investing in content marketing, but it’s harder to know how much revenue is coming from that investment (return on investment). First, you need to map sales to content marketing campaigns, but ideally you also want to map other revenue drivers like repeat purchases, customer lifetime value, total purchase value, and profit.
It’s relatively easy to map sales and other revenue drivers to the final customer view of the content before purchasing. However, this does not help you calculate the value of the content that they have dealt with in the earlier stages of the consumer journey.
Because of this, it’s important to avoid the last-click attribution model, and we’ll explain more about that a little later.
# 2: Leads
Another way to measure the value of your content marketing campaigns before making a purchase is by tracking how many leads they are capturing. Depending on the type of campaign you are running and the stage of the consumer journey you are targeting, the leads from someone who clicks on your website can range from searches through social networks to someone who picks up the phone, to request a quote vary.
Some clues are more valuable than others, and again, mapping is vital.
This time, however, you need to map two important things: the content that captured them and Any future sale they lead to – the latter is vital.
Knowing that 10% of leads from Campaign X buy your most expensive product, you can calculate a reliable ROI. More importantly, you can tweak this campaign to increase lead volume or the percentage of leads that make the purchase.
You can track leads in Google Analytics using Event measurementUse it to measure interactions like CTA button clicks, video play clicks, and form interactions. For more information, check out our handy guide to tracking leads in Google Analytics.
# 3: conversions
With the event measurement set up in Google Analytics, you can do this now Create and track goals for highly specific actions. This way you can measure and optimize almost every type of conversion on your website to increase conversion rates.
Now you can map conversions to the latest pieces of content that prospects have looked at before taking action. However, as we said earlier, this will not help you calculate the value of the content that you have previously looked at and would not have done it without that content.
By default, Google Analytics uses the last-click attribution model, which only maps the final page / source before conversion. By switching to alternative attribution modelsyou can assign a value to the first interaction, the same value to all interactions (linear) or based on the timeliness (time expiration).
For more information on attribution models, see our article on explaining marketing attribution models. Once you’re done with that, you can also find out why we use our own DDA (Data Driven Attribution) model to accurately calculate the value of campaigns.
# 4: organic traffic
Traffic is the most obvious KPI of any content marketing campaign and also one of the easiest to measure. If you want quick feedback on the success of a piece of content, pageviews are a good metric to monitor over time – just like before.
If 5% of the page views result in a purchase, you’ll see 5,000 sales per 100,000 page visits. This gives you a measure of optimization to increase organic traffic so that instead of generating 100,000 pageviews over the course of a year, you get 150,000 and an additional +2,500 sales.
However, there are variables to consider. Not all page views are equally valuable, and some purchases are more profitable than others. By increasing the quality With pageviews and optimization for the most profitable sales, you can increase your ROI by attracting the right type of visitors instead of just focusing on maximizing traffic.
Most importantly, it depends on how exactly you assign visits to sales and other KPIs.
# 5: search ranking
As your content marketing campaign matures, your ranking for certain keywords on Google and other search engines should improve. Higher rankings should lead to more visitors and opportunities to increase ROI. With a strategy like SEO, most of the investment is in content creation and optimization, and results should generally improve over time.
As your ranking improves, you should get higher returns on your content with minimal or no additional investment. This is why SEO remains such an important strategy for digital brands: Because the long-term ROI is not surpassed by other strategies, even if the results are not immediately visible.
# 6: Social engagement
Organic search isn’t the only place your content is generating valuable traffic, and search rankings aren’t the only measure of content quality. Assuming you’ve got the audience first, great social media content should show a lot of engagement, bringing in likes, views, shares, new followers, and page visits.
Social engagement should lead to more eyes on your content and, ultimately, more visitors to your website. You can use custom URLs to keep track of which campaigns and posts are generating the most traffic and then associate those visits with conversions and revenue.
Organic reach is getting smaller and smaller on most large networks, so you’ll often find that the best engagement comes from paid social media campaigns. The good news is that it gives you a wide variety of targeting options to identify relevant audiences, resulting in more page visits and valuable conversions.
Paid social campaigns also give you a deeper set of data to work with, so you can more accurately trace social engagement back to revenue and other KPIs.
# 7: cost per acquisition
Cost-per-acquisition (CPA) is a metric that should always closely track ROI in your marketing reports. Here’s how much you (on average) spend on content marketing to secure each new customer. This is a key component in accurately calculating and optimizing your ROI.
Generally, there are two ways to increase your return on investment in content marketing. Either you generate more income without increasing expenses, or you reduce expenses without reducing income.
Cost-per-acquisition provides a measure of your content marketing investment relative to the acquisition of a new customer. By reducing CPA and monitoring sales volume, you can increase ROI by lowering expenses while making sure sales don’t suffer from your more efficient content marketing strategy.
Conversely, you can increase your investments while using CPA and Sales Volume to ensure you get the higher return you expect.
How is your content marketing ROI measured?
If your content marketing ROI isn’t looking as impressive as you’d like, or if you’re not sure you can accurately measure it, you can check out our content marketing services or speak to one of our content specialists over the phone 02392830281 or by email to [email protected]
Note: We are not the author of this content. For the Authentic and complete version,
Check its Original Source