How to Measure Content Marketing ROI
There is an easy, four-step content marketing formula to weigh the cost of your content against the revenue you earn from it. Here is how you work it out:
Step 1. Calculate how much you spent to create the content
Even if you create your content in-house, there is still a cost attached, because you’re paying the content creator’s salary or work done by other departments.
And, do not forget to include any external content assets you had to pay for, like images, audio, or video other outsourced work.
Step 2: Figure out what it cost you to format the content
Again, don’t forget those in-house costs. Include any paid promotions, like social advertising and PPC advertising, as well as promotion through other media channels.
You’ll also need to include the cost of any special tools or software required for either content creation or content distribution.
Once you add up all of the expenses from Step 1 and Step 2, you’ll know the true cost of producing your content.
Step 3: Work out the rupees amount for what you got in return
If your content is working well, it’ll generate leads that turn into sales.
Sometimes, there is a clear link between content and revenue- like when people read a piece of content and then click on your call to action to buy something.
Other times, that procedure takes longer and the relationship between content and sales isn’t as direct. We will look at some of those less obvious content marketing metrics later in this guide.
But if you add up all the sales that resulted from content, you will know how much you earned, which is your return.
Step 4: Calculate your content marketing ROI
To calculate content marketing ROI, we like the easy content marketing ROI formula from Convince and Convert- Return minus investment, divided by investment, expressed as a percentage.
Here is an example of how that works:
If you spend $500 on creating a small content and get leads worth $2000, then your ROI is 300%.
(Return) $2000 – (Investment) $500 = $1500
$1500 / $500 = 3
3 x 100% = 300% (ROI)
So, how do you know if it is worth it? Here is a pretty good rule to follow: if you spend less on producing content than you earn in sales, then it is worth it.
Now that you understand how to work out content marketing ROI, we’re going to look at some of the key metrics that help you understand and report on content marketing ROI even better.
We already covered that content marketing success isn’t always about money; we will also look at some less tangible metrics below.
Before we get started, you will need to have Google Analytics set up on your website. If you are using WordPress, you will definitely want to check out one of these awesome Google Analytics plugins for WordPress.
To know more about social media marketing strategy follow the link: www.digitalnetguru.com
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