What is the Ultimate Way to Measure the ROI of Your Content Marketing Efforts?

What is the Ultimate Way to Measure the ROI of Your Content Marketing Efforts?

Novnish Ramesh 17/06/2020 8
What is the Ultimate Way to Measure the ROI of Your Content Marketing Efforts?

Content marketing has been recognized as an effective activity of brand promotion and lead generation for many years now.

One of the questions that many businesses struggle with is assessing the ROI of their content efforts.

To calculate ROI, you need to keep in mind certain things.

  • Have a clear understanding of what successful content means for your business.
  • Keep in mind that Content Marketing is a long term game.
  • Not every content effort can be quantified numerically

We all know the ROI formula – ROI = Return / Investment.

Let’s look at this formula in a content marketing perspective with some numbers.

ROI = (€1000 worth of leads - €500 Flyer cost) / €500 Flyer cost = 100%

When we talk about Return and Investment there are a lot of elements that we can plug in, some can be quantifiable while others not.

 

ROI

 

Before you start plugging in your numbers you have to remember that your content is useless if it sits idle. You have to ask yourself the fundamental question of why your content was created in the first place?

Once you have this in mind you can start going crazy with ROI with some simple steps.

Investment Analysis

In this part you’ve got your internal cost and external cost if you use an agency to produce content.

External costs is quite simple – you just total up all the costs for making your campaign a success which includes creation, promotion, and writing.

Internal costs can be complicated – You have to estimate the time invested by your employees per month in regards to their salaries.

Calculate Your Return

For this you need to use metrics such as consumption metrics, sharing metrics, lead generation metrics and sales metrics. Read more on my post here

Finding What Your ROI Is

The magic formula  for this has been created by Curata’s Pawan Deshpande.

It is similar to the one we saw earlier but it just goes into much more detail so that you understand the elements of calculating your ROI.

Curata says that, “For each piece of content x in Campaign C, take the $ amount of Revenue generated (a sales metric) by Content x and divide it by the ($ Production Cost for x + $ Distribution Cost for x) (a production metric). If the ratio is greater than 1, your content was profitable from a sales perspective.”

 You can use this formula for a campaign, a particular content or even for your content marketing activities.

ROI 2

We just care about who is seeing our content and engaging but its good to now and then be able to prove to your manager that content marketing can be calculated even if it’s a pain to do so.

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  • Matthew Watkins

    The money you invest in digital marketing will have an impact in the future.

  • Novnish Ramesh

    In reply to: Matthew Watkins

    Hi Matthew,

    Indeed it does but you have to carefully plan on which digital channels you will be investing in.

  • Kevin Clarke

    Great stuff

  • Novnish Ramesh

    In reply to: Kevin Clarke

    Hi Kevin,

    Thanks

  • Robert Parkin

    Absolutely brilliant !

  • Novnish Ramesh

    In reply to: Robert Parkin

    Hi Robert,

    Cheers

  • Chris Woodhead

    Very interesting... This will help me a lot... I have just started an online business...

  • Novnish Ramesh

    In reply to: Chris Woodhead

    Hi Chris,

    Happy to help.

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Novnish Ramesh

Marketing Expert

Novnish is a Content & Campaign Marketing Manager EMEA - helping companies and brands generate results with marketing activities. He is a passionate, cross-functional, creative and result driven marketing specialist with almost 8 years of marketing experience across product marketing, digital marketing, project management, content and campaigns. He believes that marketing activities should create value within the market and to the consumers using data, insights and innovative strategies.

   

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