{"id":37708,"date":"2016-05-03T08:34:01","date_gmt":"2016-05-03T08:34:01","guid":{"rendered":"https:\/\/blog.buzzoole.com\/?p=37708"},"modified":"2018-05-29T12:12:07","modified_gmt":"2018-05-29T10:12:07","slug":"how-to-calculate-your-content-marketing-roi","status":"publish","type":"post","link":"https:\/\/blog.buzzoole.com\/en\/business\/how-to-calculate-your-content-marketing-roi\/","title":{"rendered":"How to calculate the ROI of your Content Marketing"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Every business that has invested in content marketing has asked these questions:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">How do we measure its success?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">What are the best metrics for proving results?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Which data-points should be presented to C-level execs to prove ROI?<\/span><\/li>\n<\/ol>\n<p><strong><!--more--><\/strong><\/p>\n<p><span style=\"font-weight: 400;\">If you don&#8217;t know the answers, you &#8211; and all others &#8211; should know that there is nothing new under the sun. <\/span><a href=\"http:\/\/www.adobe.com\/content\/dam\/Adobe\/en\/solutions\/digital-marketing\/pdfs\/adobe-digital-distress-survey.pdf\"><span style=\"font-weight: 400;\">A survey<\/span><\/a><span style=\"font-weight: 400;\"> by Adobe of 1,000 US-based marketers revealed that <strong>68% of marketing folks feel pressure when it comes to showing a return on investment on their marketing spend<\/strong>, which includes spending on digital and content marketing. That&#8217;s a high percentage, which explains why every marketer is always sweating over ROI. <\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-37710 size-full\" src=\"https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/1.png\" alt=\"roi\" width=\"481\" height=\"419\" srcset=\"https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/1.png 481w, https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/1-300x261.png 300w\" sizes=\"(max-width: 481px) 90vw, 481px\" \/><\/p>\n<p>Also, with B2C and B2B content production to rise by 77% and 76% in 2016, it only makes sense for\u00a0<span style=\"line-height: 1.5;\">marketers to gain insight on the ROI of their content marketing endeavors. This may also help you\u00a0<\/span><span style=\"line-height: 1.5;\">address some of the biggest content marketing challenges.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-37711 size-full\" src=\"https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/2.png\" alt=\"content\" width=\"765\" height=\"579\" srcset=\"https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/2.png 765w, https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/2-300x227.png 300w\" sizes=\"(max-width: 765px) 90vw, 765px\" \/><\/p>\n<p>See that C-level buy-in? A positive ROI could convince them to invest more in content marketing. A\u00a0<span style=\"line-height: 1.5;\">negative could do the opposite, but industry reports reveal that marketers mostly gain from content\u00a0<\/span><span style=\"line-height: 1.5;\">marketing investments, so not finding the ROI at all means you&#8217;re missing out on great opportunities.<\/span><\/p>\n<p class=\"p1\"><strong><span style=\"line-height: 1.5; font-size: 20px;\">Guide to Measuring the ROI of Content Marketing<\/span><\/strong><\/p>\n<p>Of course, every business has its own content marketing goals. But in general, they use the tactic when\u00a0<span style=\"line-height: 1.5;\">pursuing one or a multiple of these objectives:<\/span><\/p>\n<ul>\n<li>Increase brand awareness<\/li>\n<li>Generate leads<\/li>\n<li>Achieve targeted traffic<\/li>\n<li>Grow social media followers<\/li>\n<li>Grow email subscribers<\/li>\n<li>Get positive customer reviews to build brand reputation<\/li>\n<li>Increase sales revenue<\/li>\n<\/ul>\n<p>There could be some other goals, different for B2C and B2B companies, as the image cited by Brafton\u00a0<span style=\"line-height: 1.5;\">indicates:<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-37712 size-full\" src=\"https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/3.png\" alt=\"content\" width=\"625\" height=\"383\" srcset=\"https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/3.png 625w, https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/3-300x184.png 300w\" sizes=\"(max-width: 625px) 90vw, 625px\" \/><\/p>\n<p>So, depending on your company&#8217;s goal(s), you&#8217;ll need to track certain metrics that will determine\u00a0<span style=\"line-height: 1.5;\">whether your content marketing campaign is working or otherwise.<\/span><\/p>\n<p class=\"p1\"><strong><span style=\"line-height: 1.5; font-size: 20px;\">Tracking the KPIs<\/span><\/strong><\/p>\n<p>While BuzzFeed and some other brands have conducted questionnaire surveys to determine whether\u00a0<span style=\"line-height: 1.5;\">high-quality content has an impact on brand awareness, you may not have the time or resources to\u00a0<\/span><span style=\"line-height: 1.5;\">conduct such research. What you could do instead is track the following metrics:<\/span><\/p>\n<ul>\n<li><strong>Unique Page Visitors for Landing Pages<\/strong><\/li>\n<\/ul>\n<p>It is important to measure unique page-views per landing page as this metric shows how many new\u00a0<span style=\"line-height: 1.5;\">visitors read a particular piece of content. In Google Analytics, you can go to &#8220;Behavior &#8211; Site Content &#8211;\u00a0<\/span><span style=\"line-height: 1.5;\">All Pages&#8221; to track unique page-views for individual content pages.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-37713 size-full\" src=\"https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/4.png\" alt=\"analytics\" width=\"754\" height=\"384\" srcset=\"https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/4.png 754w, https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/4-300x153.png 300w\" sizes=\"(max-width: 754px) 90vw, 754px\" \/><\/p>\n<ul>\n<li><strong>Session Duration\/Bounce Rate<\/strong><\/li>\n<\/ul>\n<p>If people spend more time reading your content, it means your content is performing well in terms of\u00a0<span style=\"line-height: 1.5;\">engagement. The metrics to track in this instance is session duration or bounce rate.\u00a0<\/span><span style=\"line-height: 1.5;\">Both metrics can be tracked via Google Analytics. To see session duration, go to &#8220;Behavior &#8211; Site-<\/span><span style=\"line-height: 1.5;\">Contenta&#8221; and see the &#8220;behavior section&#8221; from the right column. Then you can open up the subsection\u00a0<\/span><span style=\"line-height: 1.5;\">of landing pages to see the session duration for particular pages.\u00a0<\/span><span style=\"line-height: 1.5;\">For bounce rate, go to &#8220;Behavior &#8211; Site Content &#8211; All Pages&#8221; to see bounce rate for each content piece.<\/span><\/p>\n<ul>\n<li><strong>Source\/Medium &amp; Location<\/strong><\/li>\n<\/ul>\n<p>Source\/medium metric tells about the channels where the content is performing well. For example, if <span style=\"line-height: 1.5;\">greater number of users are reading your content on mobile devices, you&#8217;d be better off by investing in\u00a0<\/span><span style=\"line-height: 1.5;\">content types that work well for the small screen, such as videos, infographics, and other visuals.\u00a0<\/span><span style=\"line-height: 1.5;\">You should also look at the Location as it can really help you spruce up your content marketing process.\u00a0<\/span><span style=\"line-height: 1.5;\">For example, if a series of blog posts are being read by people from the US, you can invest more in that\u00a0<\/span><span style=\"line-height: 1.5;\">series, perhaps by partnering up with prominent US-based subject-matter experts with the help of an\u00a0<\/span><span style=\"line-height: 1.5;\">influencer marketing solution.<\/span><\/p>\n<ul>\n<li><strong>\u00a0Social Media Shares<\/strong><\/li>\n<\/ul>\n<p>Don&#8217;t make the mistake of measuring the likes received on your content. The thing is, clicking the like\u00a0<span style=\"line-height: 1.5;\">button just takes a few seconds, and people may do it by just reading the headline instead of going\u00a0<\/span><span style=\"line-height: 1.5;\">through the whole content.\u00a0<\/span><span style=\"line-height: 1.5;\">What you should be seeing instead is social media shares. People rarely share something they don&#8217;t like\u00a0<\/span><span style=\"line-height: 1.5;\">(OK, there are exceptions of those who criticize or make fun of a particular piece of content), so if you&#8217;re\u00a0<\/span><span style=\"line-height: 1.5;\">getting a lot of shares, it means people really dig into your content and they find it valuable enough to\u00a0<\/span><span style=\"line-height: 1.5;\">share on their networks.\u00a0<\/span><span style=\"line-height: 1.5;\">Tools like Trackur and Buzzsumo will allow you to measure the social media performance of your\u00a0<\/span><span style=\"line-height: 1.5;\">content marketing campaign.<\/span><\/p>\n<ul>\n<li>\u00a0<strong>Number of Downloads\/ Opt-Ins<\/strong><\/li>\n<\/ul>\n<p>Many businesses offer gated content (ebooks, white-papers, etc.) in addition to the free content on their\u00a0<span style=\"line-height: 1.5;\">websites. The number of downloads for these assets as well as the number of opt-ins can give you an\u00a0<\/span><span style=\"line-height: 1.5;\">insight on the number of leads generated by a particular piece of content.\u00a0<\/span><span style=\"line-height: 1.5;\">In Google Analytics, you can set up goals such as ebook download or newsletter opt-in to track the total\u00a0<\/span><span style=\"line-height: 1.5;\">number of leads for a piece of content. To do so, go to &#8220;Conversions &#8211; Goals &#8211; Overview&#8221;. Then under &#8220;<\/span><span style=\"line-height: 1.5;\">Template&#8221;, choose the goal you want to track the leads for. There&#8217;s also an option to create a custom\u00a0<\/span><span style=\"line-height: 1.5;\">goal.\u00a0<\/span><span style=\"line-height: 1.5;\">The last step is to enter a destination page for your goal. Therefore, you can insert any landing page with\u00a0<\/span><span style=\"line-height: 1.5;\">gated content to track the number of leads generated by that piece of content.<\/span><\/p>\n<ul>\n<li><strong>\u00a0Number of Conversions<\/strong><\/li>\n<\/ul>\n<p>Conversions will determine the impact of content marketing on your sales revenue. If the number is\u00a0<span style=\"line-height: 1.5;\">high, it means your content did well to convert subscribers or website visitors into paying customers.\u00a0<\/span><span style=\"line-height: 1.5;\">You can use cookies to track the progress of a lead from the first instance when they open a piece of\u00a0<\/span><span style=\"line-height: 1.5;\">content to the final step which leads to conversions. This is important for tracking the ultimate value of\u00a0<\/span><span style=\"line-height: 1.5;\">the content.\u00a0<\/span><span style=\"line-height: 1.5;\">Another option is to use Google Analytics to set up tracking for eCommerce. To do so, head over to &#8220;<\/span><span style=\"line-height: 1.5;\">Acquisition &#8211; Channels&#8221;, and see which channels drive the most revenue. There&#8217;s also the option to\u00a0<\/span><span style=\"line-height: 1.5;\">track conversions from social media or email, but you need to set a &#8220;New Goal&#8221; in Google Analytics and\u00a0<\/span><span style=\"line-height: 1.5;\">specify a value for that goal.\u00a0<\/span><span style=\"line-height: 1.5;\">After setting the goal value, you can see how many of your email subscribers or social media followers\u00a0<\/span><span style=\"line-height: 1.5;\">turn into customers. Reports will give you an insight on the estimated revenue generated by particular\u00a0<\/span><span style=\"line-height: 1.5;\">actions (sales because of social media shares or sales because of subscribers downloading a resource).\u00a0<\/span><span style=\"line-height: 1.5;\">Then, you can open &#8220;Behavior &#8211; Site Content &#8211; All Pages&#8221; to see the revenue generated by each content\u00a0<\/span><span style=\"line-height: 1.5;\">page.<\/span><\/p>\n<p class=\"p1\"><strong><span style=\"line-height: 1.5; font-size: 20px;\">Determining the Costs<\/span><\/strong><\/p>\n<p>After tracking the metrics mentioned above, ask yourself, how much have you spent creating and\u00a0<span style=\"line-height: 1.5;\">promoting the content to achieve those results? You&#8217;ll have to look at several factors to determine the\u00a0<\/span><span style=\"line-height: 1.5;\">cost of your content marketing campaign. The most common ones are:<\/span><\/p>\n<p><strong>Writers Earnings<\/strong>: The earnings of the writers who created the content pieces for your content\u00a0<span style=\"line-height: 1.5;\">marketing campaign will occupy a major portion of the total campaign costs. Expenses incurred in\u00a0<\/span><span style=\"line-height: 1.5;\">creating blog content, email content, whitepapers, infographics, ebooks, etc. will be included in writers\u00a0<\/span><span style=\"line-height: 1.5;\">earnings.<\/span><\/p>\n<p><strong>Editor&#8217;s Earnings<\/strong>: If the content marketing plan includes the services of an editor who proofreads and\u00a0<span style=\"line-height: 1.5;\">corrects your company&#8217;s content, then you should also include the editor&#8217;s earnings when summing up\u00a0<\/span><span style=\"line-height: 1.5;\">your content marketing costs.<\/span><\/p>\n<p><strong>Advertising Costs<\/strong>: The expenses incurred in promoting your content should be included in your content\u00a0<span style=\"line-height: 1.5;\">marketing costs. Perhaps you used Google Adwords to promote your whitepaper, ebook, etc. and social\u00a0<\/span><span style=\"line-height: 1.5;\">media marketing to promote your regular content pieces. Advertising is necessary to get eyeballs to\u00a0<\/span><span style=\"line-height: 1.5;\">your content, and therefore should be included in your content marketing costs.<\/span><\/p>\n<p><span style=\"line-height: 1.5;\"><strong>Software &amp; Tools<\/strong>: It&#8217;s a good idea to tally the expenses for software and tools, such as premium\u00a0<\/span><span style=\"line-height: 1.5;\">platforms (LinkedIn Premium, Slide-share Pro, etc.), content marketing software, influence marketing\u00a0<\/span><span style=\"line-height: 1.5;\">software, and anything else used to market your content. For example, companies use influencer\u00a0<\/span><span style=\"line-height: 1.5;\">marketing tools like Buzzoole in their content marketing campaigns to get more traffic, social media\u00a0<\/span><span style=\"line-height: 1.5;\">shares, and conversions. The cost of all such platforms, software and tools should be included in your\u00a0<\/span><span style=\"line-height: 1.5;\">content marketing costs.<\/span><\/p>\n<p>Here&#8217;s an image from CMI depicting what a typical cost-calculation looks like:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-37714 size-full\" src=\"https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/5.png\" alt=\"content\" width=\"496\" height=\"422\" srcset=\"https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/5.png 496w, https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/5-300x255.png 300w\" sizes=\"(max-width: 496px) 90vw, 496px\" \/><\/p>\n<p>HBR informed that content marketing costs mostly relate to a project&#8217;s scope (e.g. outreach via press\u00a0<span style=\"line-height: 1.5;\">release) and its reach (e.g. marketing via influencers against no outreach). The costs mentioned above\u00a0<\/span><span style=\"line-height: 1.5;\">normally makeup the costs for most content marketing campaigns these days.<\/span><\/p>\n<p class=\"p1\"><strong><span style=\"line-height: 1.5; font-size: 20px;\">Finding the ROI<\/span><\/strong><\/p>\n<p>The ROI can be calculated with a simple content formula. Once you have defined business goals, tracked\u00a0<span style=\"line-height: 1.5;\">KPIs and listed the costs, it will be easier to find the ROI based on the following formula:<\/span><\/p>\n<p style=\"text-align: center;\">(<strong>Value Generated From A Content Investment &#8211; Cost of Creating &amp; Marketing That Content) \/<\/strong><\/p>\n<p style=\"text-align: center;\"><strong>Cost of\u00a0<\/strong><strong style=\"line-height: 1.5;\">Creating &amp; Marketing That Content<\/strong><span style=\"line-height: 1.5;\">.<\/span><\/p>\n<p>The value generated from a content investment will always require you to assign a dollar value to\u00a0<span style=\"line-height: 1.5;\">particular conversion (like you do in Google Analytics for eCommerce tracking). For instance, the sale of\u00a0<\/span><span style=\"line-height: 1.5;\">an ebook may be worth $60 if there&#8217;s a one-time sale, or possibly $600+ if you make 10 sales because of\u00a0<\/span><span style=\"line-height: 1.5;\">positive word-of- mouth. If the ebook is for the B2B industry, a single sale could be worth in thousands.\u00a0<\/span><span style=\"line-height: 1.5;\">The dollar value will depend on your industry and the expected recurring revenue from sales.\u00a0<\/span><span style=\"line-height: 1.5;\">Once you find the value generated from a content investment, you can deduct the cost incurred in\u00a0<\/span><span style=\"line-height: 1.5;\">making that investment and divide it by the same to determine your ROI. So for example, if the value\u00a0<\/span><span style=\"line-height: 1.5;\">generated from a white-paper (which served as a lead magnet that made people buy your services) is\u00a0<\/span><span style=\"line-height: 1.5;\">$1000 and you spent $300 in creating and marketing that page (hiring a writer for the content of the\u00a0<\/span><span style=\"line-height: 1.5;\">white-paper, creating ads to promote the landing page, etc.), then you will calculate the ROI in the f<\/span><span style=\"line-height: 1.5;\">ollowing manner:<\/span><\/p>\n<p style=\"text-align: center;\">$1000 &#8211; $300 \/ $300 = 2.33 or 233%<\/p>\n<p>That&#8217;s a staggering ROI, but it is normal to expect such figures. Kraft, for example, was able to\u00a0<span style=\"line-height: 1.5;\">demonstrate that content marketing helped the company gained a better understanding of its\u00a0<\/span><span style=\"line-height: 1.5;\">customers. In just a couple of years, the company was able to show that their content marketing efforts\u00a0<\/span><span style=\"line-height: 1.5;\">resulted in a 4 times better ROI than traditional advertising efforts.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-37715 size-full\" src=\"https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/6.png\" alt=\"roi\" width=\"395\" height=\"245\" srcset=\"https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/6.png 395w, https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/6-300x186.png 300w\" sizes=\"(max-width: 395px) 90vw, 395px\" \/><\/p>\n<p>Expect to see something like this if you&#8217;re enjoying a decent ROI from content marketing.<\/p>\n<p class=\"p1\"><strong><span style=\"line-height: 1.5; font-size: 20px;\">Final Thoughts<\/span><\/strong><\/p>\n<p>As with any type of digital marketing investment, it is possible to measure content marketing to show\u00a0<span style=\"line-height: 1.5;\">the ROI. Make sure you&#8217;re tracking everything from the get-go and have deployments in place that\u00a0<\/span><span style=\"line-height: 1.5;\">demonstrate the value from your content marketing efforts. By doing all this, you would avoid the\u00a0<\/span><span style=\"line-height: 1.5;\">situation where you shrug your shoulders when any C-level exec asks you for ROI figures.<\/span><\/p>\n<p>What are your thoughts? Do you have any additional tips for demonstrating the ROI of content\u00a0<span style=\"line-height: 1.5;\">marketing? Feel free to leave comments.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><strong>About Buzzoole<\/strong><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"http:\/\/brands.buzzoole.com\" target=\"_blank\" rel=\"noopener\">Buzzoole\u00a0<\/a>is an influencer marketing platform which allows brands to get in touch with users particularly influential in their specific markets. Thanks to a property technology, the platform allows to select, negotiate and manage influencers in order to involve them in digital\/social pr campaigns, through an assisted or self-service way. In addition, Buzzoole provides extensive reports in order to evaluate the campaign performance.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Do you want to find out more on influencer marketing? <a href=\"https:\/\/brands.buzzoole.com\/academy\/the-comprehensive-guide-to-influencer-marketing?utm_source=blog&amp;utm_medium=post&amp;utm_campaign=ebook_nr1\" target=\"_blank\" rel=\"noopener\">Download<\/a> our guide!<\/span><\/p>\n<p><a href=\"https:\/\/brands.buzzoole.com\/academy\/the-comprehensive-guide-to-influencer-marketing?utm_source=blog&amp;utm_medium=post&amp;utm_campaign=ebook_nr1\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-37723 size-medium\" src=\"https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/Schermata-2016-05-03-alle-10.43.03-300x208.png\" alt=\"influencer marketing\" width=\"300\" height=\"208\" srcset=\"https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/Schermata-2016-05-03-alle-10.43.03-300x208.png 300w, https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/Schermata-2016-05-03-alle-10.43.03-768x533.png 768w, https:\/\/blog.buzzoole.com\/wp-content\/uploads\/2016\/05\/Schermata-2016-05-03-alle-10.43.03.png 798w\" sizes=\"(max-width: 300px) 90vw, 300px\" \/><\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Every business that has invested in content marketing has asked these questions: How do we measure its success? What are the best metrics for proving results? Which data-points should be presented to C-level execs to prove ROI?<\/p>\n","protected":false},"author":10,"featured_media":37719,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,655],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to calculate the ROI of your content marketing<\/title>\n<meta name=\"description\" content=\"Calculating the ROI of your content marketing might be daunting. 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