How to Calculate ROI on Your Content Marketing Investment

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What is ROI in content marketing?

In the world of digital marketing, ROI is referred to the profit that is earned from the revenue a business spends on the marketing field.ROI in content marketing portrays the effects of marketing efforts by the business. A positive ROI denotes a healthy investment result, it shows that the consumers that the business draws from the marketing campaigns counterbalance the costs the business incurs for the advertisement campaigns. A positive ROI is always a high ROI, ideally. This measurement of marketing exhibits how effective the business's campaigns are performing. Visit Text Mercato to know more about it.

How to Calculate ROI in Digital Marketing?

Calculating ROI for marketing using the help of formulas and other pointers. 

The basic method for ROI calculation is 

ROI =[ Net Profit/ Total Cost] x 100

However, the above-mentioned calculation is futile if there are incorrect data, inaccurate key performance indicators or KPIs or no objectives. 

Hence, one must evaluate the following pointers to calculate ROI:

  1. Set Objectives: The main objective is to prove that the marketing strategies used have successfully brought in abundant revenue for the business organisation. Most of the time, ROI isn't the only mathematical measure of the success of marketing efforts. There are other ways, too, such as the number of clicks that can be counted too. Regardless, this method does not prove the economic success represented by ROI. This is why setting objectives before calculating ROI is vital.
  2. KPI or Key Performance Indicators: Key performance indicators are those factors that showcase the performance of the marketing strategies. Some of the common key performance indicators are given below:
  • Cost per Acquisition or CPA: This indicates the revenue spent to acquire consumers and is calculated by dividing the total amount spent on marketing by the total number of customers acquired. 
  • Monthly Visits: This indicates the number of people that have clicked the business website every month. This data can be further segregated based on the source such as paid or social.
  • Average Position: The business's website position in search results makes a substantial distinction in the amount of traffic the website obtains. This shows the search result page ranking for the keywords that have been targeted. To calculate the average position on search engines such as Google, it uses Google Analytics. The more the number of clicks on the website, the higher the ranking and higher the ROI and in proportion higher revenue. 
  • Non-branded clicks: When customers click on the business's website without directly marketing the brand, that is called a non-branded click. This will give you insights into whether or not the strategies performed well. One example of a site that shows such data is google search console. 
  •  Brand Search: Brand search is a form of a key performance indicator that scrutinises how many individuals searched for the business website. This measure increases as and when the business's reputation gets better and more established. This KPI is perfect for recognising the customer awareness of the business.  
  • Collect accurate data from legible sources: Collecting accurate data which does not have any inconsistencies is vital for the KPIs and for calculating ROI figures which are correct. Otherwise, the incorrect KPIs and ROI will not prove to be of any use in assessing how effective the marketing methods have been in attracting consumers to the website. Hence, the system of collecting data should be proper to collect clean data without any hiccups. Before the collection of data, it is also important to choose and recognise the KPIs that the business wants to track and assess. Identification of KPIs is important so that only relevant data is collected. The KPIs that are being chosen must align with the objectives and goals of the marketing strategy implemented. During instances when both the marketing and sales departments of the business are involved in the conception and implementation of the marketing strategy, it is more reasonable to utilise a method of data collection that is both budget-friendly and also meets the demands of the KPIs.
  • Focus on both KPIs and ROI: Marketing strategies are implemented to increase the sales of the business, and this result is represented by high revenue and ROI. Therefore it is vital to focus not just on the ROI but on the KPIs, too, as KPIs play an important role indirectly. ROI and KPIs work hand in hand to portray the bigger picture of the effectiveness of the marketing strategy. Sometimes when KPIs are looked at individually, they do not make sense. It looks more sensible and understandable when connected with ROI.
  • Analysis of KPIs to calculate ROI: The amount of search page rankings, shares on social media sites, website traffic, etc, are KPIs to calculate ROI in content marketing. The KPIs are excellent indicators of the effectiveness of the content marketing investments made by the business in appealing to customers and generating high revenue. When social media is the instrument that brings in more interaction with the business website or posting of viral content on the internet brings an influx of clicks to the website, then more revenue can be generated through brand recognition. This can further lead to higher ROI as there is an increase in website traffic which is the result of the optimization of the content on the website.  

What Is the Ideal ROI for Content Marketing Investment?

The ideal ROI for content marketing investment depends on what type of ROI is being measured. It is sometimes based on industry benchmarks. The order value for the business's products is the highest for email marketing and lowest for social media marketing. Tools like MailChimp detects and prepares reports that issue the fitting ROI benchmarks according to industry, click-through rates, audience size, business goals and objectives, company size, subscribe rates, etc.

The ideal ROI for content marketing depends on online newsletters, downloads, subscriptions to email lists, and subscription lengths. For leading metrics it is click-through rates, community engagement, average pages per session, social media engagement, etc


The ROI calculation is essential for content marketing investments as the business gets to check whether marketing efforts have borne any fruit. This can be done only with the interconnection of KPIs and ROI as they depend on each other and form a pattern when brought together that results in analysis.

At Text Mercato, we know how to produce quality content that reaches and connects with your audience and converts them into reliable leads for your business. You may check out our content writing services to discover how we can provide your company with fresh material that will boost your marketing strategy.

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