Now, let’s go to the more mathematical part of the post.
The ROI calculation is based on the following formula:
ROI = (return – cost of investment) / cost of investment
So, let’s assume that adding up all the costs, your total investment in content marketing was $40K for 1 year.
During that period, the strategy was responsible for 120 sales with an average revenue of US$500.00.
Therefore, your investment cost would be:
120*500 = 60,000.
Returning to the general ROI formula, the calculation would be done like this:
ROI = 60,000 – 40,000 / 40,000
ROI = 20,000 / 40,000
ROI = 0.5 .
To see the result as a percentage, simply multiply that value by 100. In the case of our example, the ROI would be 50% .
So for every dollar invested in this example content marketing strategy, 50 cents came back in the form of revenue, which would be a great result.
In this example, we are evaluating the ROI of a campaign that aims to increase sales. If it were a different goal, such as lead generation, the formula would follow the same . What would change would be the calculation of the investment.
So, instead of multiplying the number of sales by average revenue, you would multiply the number of leads by average revenue per lead.
What is the ROI of content marketing compared to traditional marketing?
The duality between the return on investment spain telegram data of content marketing and traditional marketing is interesting based on the results obtained.
It’s not hard to find articles and research that argue that the ROI of content marketing is higher. In fact, it’s not that hard to come to that conclusion.
Let’s see the reasons:
Difference in costs
The costs involved in this process are usually lower, since much of the focus is on producing content and generating organic traffic and leads .
Also, there is not usually much investment in paid media to disseminate content. Therefore, the investments are not that large.
Of course, this varies depending on the size of the strategy.
For example, a blog that publishes more than 20 pieces of content per month must have higher costs, especially due to the hours of work of the professionals involved in creating and promoting the materials.
However, if we compare the value of publishing a blog article with advertising on the radio, newspaper, magazine, external media and, mainly, television, we will see a significant difference in values.
Just paying for space in a traditional medium to spread your message already makes the campaign quite expensive. The blog is the company’s own space and you don’t need to pay extra for it .
But it’s worth noting that we’re comparing the two sides based on similar audience reach.
Advertising in a small newspaper and in a tiny space on the classifieds page may possibly be cheaper than publishing and disseminating a blog post.
Difference in monitoring results
Offline media does not offer the same measurement capacity as digital media .
It is not possible to quantify, with great precision, the number of people who read, listened to or watched an advertisement. Not to mention the number of customers who contacted the company or purchased your offer after seeing some of your ads.
Digital marketing analytics tools work with much more accurate data than traditional marketing .
The ROI on content marketing can be more worthwhile, both financially and in terms of measurement.
What are the best strategies to increase content marketing ROI?
Return on investment is an indicator that choose keywords in the form of questions can always be improved. That’s why we’ve selected some good practices to help you optimize this metric in content marketing:
1. Listen to your readers’ opinions and improve your content production
Something that greatly interferes with the jiangxi mobile phone number list calculated return on your ROI is the quality of the content published.
Specific elements such as article topics, language used, and scannability can be modified based on the signals your audience is sending.
You can see them in the number of visits to your blog , the time spent on it, and the comments received on your articles.
You know those articles that get fewer views, that only keep readers for a few seconds, receive no comments, and if they do receive any, they are negative comments?
Not listening to your audience’s signals can stunt your ROI growth.
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2. Post more frequently
What is the average number of posts per month on your company’s blog? More or less than 30?
To give you an idea, we’ll share an interesting fact with you: experts suggest that a blog that wants to grow to its maximum capacity should upload between 3 and 5 pieces of content per day.
However, you need to take into account your limitations as an organization, as well as produce content with a certain level of quality that keeps your audience engaged.
3. Increase the size of your posts
The more comprehensive your content is, the more likely you are to please your audience and drive more traffic to your website.
Posts with more than 1,200 words generate 3 times more traffic and are shared 60% more than posts with less than 600 words .
If your posts aren’t that long, give it a try. Increase the word count a bit — keeping the content relevant — and see if there are any positive changes in your blog’s traffic.
4. Review and optimize your costs
ROI also involves investment costs, so there is nothing more appropriate than re-evaluating them.
After an initial analysis of your results, you can modify the invested amount in the following points:
- replacing keywords with cheaper ones;
- modification of dissemination channels;
- more precise segmentations;
- replacement of paid image banks with free banks;
- reduction of working hours for production;
- promoting content without losing performance;
- inter alia.