Digital Marketing

Measure Your Marketing ROI |How To Proceed? |Complete Detail

According to Cision, a global leader in solutions and services for press relations, influence, monitoring and ROI media intelligence, the content marketing industry is expected to grow by more than $417 billion between 2021 and 2025. means that literally billions of dollars are being deployed into content marketing this year and a return on this investment is expected in the near future. Whether you’re a content marketing veteran or a new player contributing to the growth of the industry, understanding the ROI of your content marketing is essential.

What is content marketing ROI?

Content marketing return on investment is the measure of the net positive income from your content marketing investments after expenses, expressed as a percentage.

The basic ROI formula is:

Content Marketing Revenue – Content Marketing Spend / Spend x 100 = Content Marketing ROI

Let’s take an example :

If you spent $200,000 on content marketing last year and your content generated $1,000,000 in revenue, your R-O-I would be:

(1,000,000 – 200,000)/200,000 x 100 = 400%

What is a good ROI in content marketing?

A good content marketing ROI depends on your industry, domain rating and authority, etc. But if your calculation comes up with a number greater than zero, you’ve at least made a return on your investment.

When we evaluate a potential client, we want to see our ROI estimates between 300 and 400% (3x to 4x), if not more, to highlight the added value of our work.

One consideration that isn’t factored into manyestimates, but should be in actual ROI calculations, is the lifetime value of a piece of content in your industry. If your content consistently generates traffic and conversions for more than three years, your ROI will therefore be much higher than what you estimated over a 12-month period.

How to calculate the ROI of content marketing?

Depending on your business model, your method of estimating and calculating ROI may be slightly different. There are a few nuances to consider before modeling your content feedback:

How valuable is content in your industry?

A simple way to estimate the value of a piece of content in your industry is to take the value of a top competitor’s traffic and then divide it by the number of pieces of content on their site .

Traffic Value is a metric from Ahrefs that represents the monetary value of organic traffic through keywords that people bid on in PPC ads.

If you have an accurate assessment of the value of a piece of content based on your own existing content, that’s great – but if not, you should identify the content’s value in your market by analyzing your main competitors.

It’s also worth noting that the process of projecting content marketing ROI is opaque at best. We use Ahrefs traffic value as an accurate metric, but with full understanding that it doesn’t exactly correlate to revenue and ROI.

If the content doesn’t seem to have much value at first glance, you might consider researching what a link is worth in your market.

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How valuable is organic traffic to your business?

If you don’t trust the traffic value as reported by Ahrefs, or if this metric simply doesn’t seem right for your business (that’s okay!), there is another solution, provided so you know exactly what organic traffic means to you in terms of conversions and revenue.

In this case, you can identify the average organic traffic for content in your industry and calculate the numbers based on your conversion rate.

If the content doesn’t seem to have much value at first glance, you might consider researching what a link is worth in your market.

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