Calculating ROI on Content Marketing
The Return on Investment (ROI) for content marketing can be difficult to calculate. It involves looking at the costs for both producing and promoting the content, and the returns generated for the business. Here are some tips to help calculate the ROI of content marketing:
Define the goals. Before starting any content marketing campaign, you need to define clear goals. For example, you might want to generate leads or increase website traffic. Or your goals could be to raise your search engine ranking, or improve social media engagement.
Track costs. Costs can be incurred for creating the content (for example, salaries or payments to content creators or agencies), as well as for promoting the content (for example, paid ads, software for email marketing).
Measure returns. Be sure to determine HOW you will track your results before you get started. Once data starts coming in, measure that against the goals you set in step 1. You may want to convert your returns to estimated revenue
Calculate the ROI. Use the following formula to calculate ROI, ROI = (Returns – Costs) / Costs. This will give you a percentage that represents the return on investment of your content marketing campaign.
According to a study by the Content Marketing Institute, the average ROI for B2B content marketing is around 3:1. This means that for every dollar spent on content marketing, businesses are seeing a return of three dollars.
Also remember that ROI for content marketing may take time. Therefore, it’s important to measure the ROI over a period of time.