Content marketing has been recognized as a successful product of product promotion and generation for many years now.
One of the questions most businesses struggle with is analyzing the ROI of their content efforts.
To calculate ROI, you should always keep in mind certain things.
We all know the formula of ROI - ROI = Return / Investment.
Let’s take a look at this formula from a content marketing perspective on specific numbers.
ROI = (€ 1000 cost of earning - $ 500 Flyer costs) / € 500 Flyer costs = 100%
When it comes to Return and Investment there are many things we can connect with, some can be costly while others may not.
Before you can link your numbers you must remember that your content is useless if it remains useless. You have to ask yourself the basic question of why your content was created first?
Once you have this in mind you can start to get lost with ROI with some simple steps.
In this section you will find your internal and external costs when using an agency to produce content.
External costs are very simple - it simply includes all the costs of making your campaign a success that includes creating, promoting and writing.
Internal costs can be difficult - You should estimate the time spent by your employees per month in relation to their salaries.
For this you need to use metrics such as metro usage, sharing metrics, lead generation metrics and sales metrics.
The magical formula for this was created by Pawata Deshpande of Curata.
It is similar to the one we have seen before but only has more detail to understand the elements of calculating your ROI.
Curata says, "For each section of content x in Camp C, take the $ Revenue generated revenue (sales metric) for content x and divide it by ($ Production Cost of x + $ Distribution Cost for x) (a production metric). If the rating is larger than 1, your content will be more profitable in terms of sales visibility. "
You can use this campaign formula, specific content or even your content marketing activities.
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.
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.