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What Is Content Marketing ROI?

In the world of digital marketing, content is one of the most powerful methods of reaching out to your customers. If you must implement content marketing for your business, then use it for the purpose of achieving your marketing goals. It is essential to ensure that your content marketing strategies are bringing in revenue. After all, you are investing time and money in it for the long term.

Social media and content marketing are similar as they both provide long term benefits to businesses. However, it is difficult to accurately understand the ROI for them both. Earlier, people used proof-of-concepts to understand the usability of these marketing tactics. However, this is no longer the case as there is a need for actionable statistics before investments are made. At the same time, content has become very important to any organization that wishes to communicate more effectively with their customers.

Content marketing ROI is generally problematic for business owners. However, it should not be a problem, especially for confident, experienced marketers. Content is a great marketing tool. Moreover, its benefits and ROI have now become measurable. Of course, you need to know some figures in order to help you calculate the ROI of your content.

How to calculate your content marketing ROI

In order to perform an ROI calculation for your marketing activities in content, you need to start at the basics. These basics are the generated revenue and the costs. It is critical to make the estimation or the accurate calculation of these metrics in order to calculate the content marketing ROI.

Outgoing costs to content marketing

You should estimate how much money content marketing is costing your business. This cost can be comprised of a number of things. The salaries of your content writers and developers as well as the overheads associated with creating the content will be a part of it. The cost of distributing the content by means of a content amplification platform like Outbrain also needs to be included. If you are using any software for creating or publishing the content, you need to add their costs as well. Taken together, it will be the outgoing cost of your content marketing project.

Revenue generated through content marketing

It is essential to know how much revenue your content marketing tactic has brought in for your company. On the other hand, the efficiency and success of any marketing tactic involving content are generally measured by the engagement it generates rather than its actual commercial success.

You can find out the revenue generated by various means. You can take a look at the number of sales that have originated through the content. Alternatively, new emerging technologies which utilize product-to-content suggestions can be used to show a more transparent link between the read content and the ultimate purchase. There are now technological methods which you can use to understand the effects of specific content pieces on the purchases.

Another vital point to be kept in mind is that personalization of content marketing, is now a possibility and improving with time. This can help you make realistic calculations on various metrics such as lifetime customer value improvement, the monetary value of customer engagement on the basis of each piece of content and customer acquisition costs. Over time, such calculations will improve further giving you more accurate results for revenue increases.

Formula for content marketing ROI

Once you know the costs of marketing and the generated revenue of your content, you will be able to calculate the returns you gained from your investments.

ROI = (Generated Revenue – The Cost of Marketing with Content) / the Cost of Marketing with Content. 

Expressed as a percentage, the final number should be multiplied by 100. 

Why do you need content marketing ROI numbers?

By calculating the content marketing ROI, you will be able to utilize it to find out more of the value of content on the other aspects of your business apart from marketing. You will be able to showcase the value by saying that the ROI of content is better than some of the other advertising and marketing tactics.

From a marketer’s perspective, marketing with content can prove to be a better option than other methods. A cold hard fact as demonstrated by the ROI will be able to lend their arguments more weight. They can show that content brought in more customers rather than an AdWords campaign. Spillover benefits can also be showcased in a similar manner.

Content can have other uses apart from its commercial impact. Such impacts may not be measurable but they can be effective nonetheless. An example of this is brand awareness. More exposure to content can increase brand awareness and the positive emotions associated with it. On the other hand, the ROI of content will ultimately help you show these benefits clearly. All of these calculations and insights are imperative in showcasing the importance of content in digital marketing.

In business, cold statistics and numbers are needed to showcase the importance of anything. The same applies to content marketing.


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