Content marketing is being touted as one of the most effective ways to market a product, service or brand name. The strategy has so many components that can be very tricky to implement if you’re unsure of the process, however — you might lose sight of your goals along the way.
So, how does one measure how well a campaign or several campaigns are doing? It has to satisfy the main objective of why you’re marketing something in the first place. It needs to draw in leads that you can then convert and earn.
Content marketing has to result in a significant return on investment.
ROI should Always be Your Main Indicator of Success
A content marketing strategy and how successful it is can’t always be easily measured on a cause-and-effect basis. Moreover, it is a process that builds up momentum slowly, over time, so results might not be seen right away.
Still, there’s still one reliable way to tell if you’re going in the correct direction: calculating your return on investment, which is directly tied to your revenue. When you analyse your content marketing ROI, you’ll find how much revenue you made compared to what you spent to run the campaign.
How to Keep Track of Your Conversions
In general, you can say that you’re doing alright when your ROI is positive; and that the opposite is true when you have a negative ROI. To calculate it as accurately as possible, just follow the four steps on our content marketing formula:
Decide on a conversion tracking method
First, you’ll have to define, in your own terms, what would and wouldn’t qualify as a conversion. An action is usually considered a conversion when a monetary transaction takes place or leads up to it.
Second, you’ll need to flesh out the exact parameters for conversion. Which content pieces will you track, how will you track them, etc. Businesses differ from one another, so the way you design your matrix will depend on your needs.
Determining production costs
Content marketing production
No matter what type of content you create, it will always have a price tag attached to it. Content produced in-house is no exception. External asset considerations will include any work you outsourced as part of your process, including image, audio and video creation.
Expenses incurred in order to distribute said content
To earn, you need to spend, and most of the spending will go to promoting your content. Check in-house and outsourced advertising for PPC, social and other media channels plus the cost of any special tools or software you used to achieve this.
Note: adding 1. and 2. will give you the true production cost of your content.
Apply the amount of what you earned from the subsequent conversions
Based on your conversion descriptor and which parameters you’ve tracked, you’ll be able to figure out how much you’ve earned in terms of sales from a piece of content. This is your return.
Calculate your content marketing ROI
Let’s keep your calculations simple. When calculating your content marketing ROI, take away the investment from the return, divide it by the investment and then express it as a percentage.
This means if you spent $100 and convert leads worth $500, then you have a return on investment of 400%.
When doing this, you only need to remember two things:
- If you earned more from the content than you spent to produce it, then the effort was worth it.
- If the earning were significantly higher than the production cost, then it bears repeating the process.
Partner with an Effective Digital Marketer
Keeping careful track of your content marketing campaigns and measuring how well they’re doing through conversion rates and ROI is a given. But have you thought about who to entrust this important task to?
Not everyone is skilled enough to make sure all the components of your strategy are working together to increase your bottom line, nor do they always have enough time to learn the ropes.
Outsourcing is the solution to your content marketing needs. Axadra, a digital marketing agency serving clients in the UK and beyond, has a team of professionals ready to provide critical support to you and your brand.