Your bottom line is sitting at the back of your mind with every business decision you make. Those running small businesses are even more concerned with where their money is going and, more importantly, how their business decisions will help them make that money back. Getting a good return on investment (ROI) from your marketing campaigns can prove endlessly valuable, potentially bringing in new customers who stick around for life. Content marketing is becoming more and more popular among businesses of all sizes, but before you dive in, it’s important to analyze the ROI of content marketing and determine how to make the most of your efforts.
Defining The ROI Of Content Marketing
First things first: what do we mean when we say “ROI of content marketing”? Essentially, you’re trying to determine whether your content marketing campaigns are bringing in more money than they are costing you. It might be tempting to just look at the results of your campaign, but if you’re spending more money to launch it than what the campaign is actually bringing you, it might be time to look for a different strategy.
How To Calculate Content Marketing Return On Investment
Now that we know what “ROI of content marketing” means, we should learn how to calculate it. The basic formula for calculating ROI is outlined perfectly in this graphic from The Online Advertising Guide:
(image from https://theonlineadvertisingguide.com/glossary/roi/)
Essentially, you’ll want to subtract the amount spent on your campaign from the amount you’ve gained from it. Then, divide this figure by the amount spent and multiply by 100 to calculate your ROI.
Having this simple formula can be a godsend for many marketers, as an estimated 69% of marketers aren’t confident in measuring their ROI. If you’re part of this group, or if you fall into the group who doesn’t measure their content marketing return on investment at all, this formula can help you get started.
One thing to keep in mind, though: when accounting for the amount spent, you have to total all of the expeditures for the entire campaign, not just one piece of content. This can include the amount you’re paying your workers to create your content as well as any additional costs associated with launching your content marketing campaigns.
When you measure your ROI with this formula, you’ll need to do a bit more work than what may appear on the surface. It can be difficult to determine just how much you’ve spent on a single campaign, and you may have to wait months to determine whether your campaign was profitable or total exactly how much money it has brought in.
You may also consider the revenue to cost ratio to calculate your ROI. For instance, if you’re bringing in $3 for every $1 you’re spending on your campaign, then your ROI ratio would be 3:1.
Are Your Efforts Successful?
Now you know how to measure your content marketing ROI. But once you have that final number, what do you do with it? How do you know if your ROI is good or not? It’s hard to name an exact figure that marks an effective ROI campaign for all businesses in all fields. However, WebStrategies asserts that 5:1 is a good ratio for marketing campaigns. A ratio lower than that likely isn’t producing enough profits to be worth your time and effort. Higher ratios are entirely possible but are not standard, so it shouldn’t be your expectation for every campaign.
Tips for Measuring Your Benchmarks
When you’re starting to measure The ROI Of Content Marketing for your business, where should you begin? As with any aspect of your business, it’s important to start by setting tangible and realistic goals. Why are you measuring your ROI in the first place? Are you trying to attract new leads, build your email list, increase conversions, or simply reach wider audiences?
After your goal is defined, you should think about how to track them. Consider specific metrics like web traffic, unique visitors, conversion rate, or bounce rate. There are dozens of metrics to choose from, and which ones you track will be determined by your goals. You may even track different metrics from campaign to campaign, simply depending on what your goals are for that specific effort.
Once you’ve decided on the metrics you want to track, set your benchmarks. In this step, you can define what’s The Roi Content Marketing success looks like for your business. Keep your benchmarks ambitious but realistic. Then, once you’ve launched your campaign and calculated your ROI, you can weigh it against your benchmarks to determine whether the campaign was successful on your own terms.
Moving forward, you can return to these benchmarks to influence future campaigns. If a marketing effort didn’t perform as well as you wanted it to, consider how you can tweak it or aim for a different goal. If the results were above and beyond your expectations, delve into how you can use that same strategy in other aspects of your marketing campaigns.
Content Marketing With WriterArmy
Measuring your content marketing return on investment may take a bit of time, but it’s more than worth it to track. Content marketing is on the rise, and business owners aren’t looking back. By making the most of your content marketing campaign, you can not only attract new customers, but you can also spread the word about your business, prove yourself as an industry authority, and save money on your marketing budget overall.
If you’re looking for help creating intriguing and relevant content for your audience, WriterArmy can help. We have more than a decade of experience in the content marketing industry and have worked in in-demand verticals including fintech, SaaS, B2B, and others. We can create a customized package to provide the content that meets your needs and helps push your business forward. To learn more about our content creation and content marketing services, contact us today!