What Are Benefits of Calculate ROI in Content Marketing?
Benefits Of Calculating ROI in Content Marketing
What do you mean by content marketing? Content marketing is a type of marketing strategy that uses modes such as articles, videos, podcasts, and other written/audio/visual media to attract, engage and retain consumers.
What is ROI? ROI is a measure of performance that is used to evaluate the profitability of a venture or investment made. It measures the amount of return or profit to the cost of investment. It is expressed in terms of percentage.
So, what is ROI in content marketing? In simple words, Content Marketing ROI is a metric used to measure the percentage of revenue earned from content marketing in comparison to the amount spent on the same. To know the true benefit of content marketing, it is important to calculate ROI in content marketing.
ROI in Content Marketing
As defined above, Content Marketing ROI is the metric that measures the results of content marketing strategies. In a general sense, content marketing is a long-term strategy. Most firms that measure ROI at the beginning usually find the same to be negative. But still, the strategy is put into effect as ROI increases over time. The increase will happen with time, effort, and research.
How to Calculate ROI in Digital Marketing?
The formula uses 2 factors which are as follows :
- Gains: This is the monetary profit that arises from revenue-generating activities that increase the visibility of the brand
- Expenses: These are costs related to man force, material purchase, tools, contract costs, and broadcasting costs.
Hence, the formula to calculate ROI in content marketing can be derived as follows –
ROI (%) = Net Profit/Gains * 100
*Net Profit/Gains = Revenue from Investment – Cost of Investment
Metrics that Impact ROI of Content Marketing
Seven key metrics impact the ROI of Content Marketing are:
- Lead Quality: This is the factor that helps to identify how many of your prospects will transform into paying customers. Higher the quality of leads, the more likely that the firm shall gain new customers
- Sales: This factor measures the number of leads that have transformed into new customers and the value of the goods or services sold to these new customers
- Web Traffic: This factor measures the number of users who have consumed your content. Higher traffic means higher chances of making more sales
- Onsite Engagement: This factor helps to measure the retention of consumers
- Social Media ROI: This metric indicates the amount of value generated by investments in social media
- SEO Success: Search engine optimization (SEO) is the factor that ensures that the content receives more web traffic
- Exposure and Authority: Having authority and exposure, both online and offline help to ensure that more and more users share and link the content. Using TextMercato for content needs shall help the firm increase its ROI from content marketing.
Benefits of Calculating ROI in Content Marketing
There are quite a few benefits that a firm derives when they calculate ROI in content marketing. Some of these benefits are given below –
- Generating more leads: Content marketing intends to get more leads and attract more customers. Viewership ensures that the firm gains the trust of new prospective customers and improves the chances of generating more sales. If the content consists of calls-to-action (CTA) or landing pages or links to websites, this will help generate more web traffic as well.
- Increases retention of existing customers: The aim of firms through content marketing should not only be to attract new customers. They should also consider the needs and requirements of existing customers as well through their content. Articles, infographics, eBooks, and case studies help to improve brand image and ensure a positive experience for customers. Content should be such that it ensures repetitive purchases for the firm.
- Enhancing Search Engine Optimization (SEO): How a website performs on the search engine highly depends on its relevance and user experience. Content marketing should aim toward satisfying the needs of the customers. Various parameters available on the search engine provide data regarding time, frequency of access, performance, and even visibility of the website. Firms should aim at improving these parameters for an increase in sales and brand value.
- Develops trust among customers: Sometimes, when some needs of customers are met by the firm without the customer providing anything in return, this develops trust and reliability in the brand. This in turn leads to recommendations and word of mouth. Having a positive association with the brand ensures that customers have repetitive purchases.
- Builds authority: Building authority online requires a lot of time and effort. For SEO success and ranking better on search engines means that the consumers believe that the information provided by your website is trustworthy. To build authority, the firms need to provide valuable answers to the questions of consumers, give better experiences and ensure that the customers know that your brand is the best.
The following are some of the statistics that prove that firms that calculate ROI in content marketing reach great heights –
- Websites with more than 400 posts and articles receive more than 2x the traffic as compared to websites with 300-400 posts.
- Publishing 2 to 4 articles per week shall lead to the highest conversion rate and traffic.
- By publishing more than 16 articles per month 4.5x more leads and 3.5x more traffic.
- Content marketing investments cost 62% less to launch and maintain as compared to other campaigns.
- SEO-directed blogs bring in 1,000% more traffic than social media marketing.
- Blog posts are the most popular type of content.
Calculating the ROI of content marketing is extremely beneficial to all firms and should be adopted to ensure maximum returns. Content marketing campaigns are gaining popularity because the content is king, and consumers are always attracted to the content.
TextMercato consists of the best writer and editors who can ensure that your firm shall have a great content marketing campaign. They produce quality content that has great reach and is highly reliable. Please check out the official website of TextMercato for more information and details.
Let’s hear from you on how we can positively contribute to your goals!