Content marketing has become a popular trend in recent years with many companies moving away from traditional advertising. Also, with the advent of social media it has never been easier to deliver content directly to consumers. Whether businesses choose to utilise blogs, articles, videos or even GIFS, there are so many mediums available. With all of this in mind, it seems as if content marketing is the easy answer but at what point does it generate enough income to justify its creation?
Content Marketing vs Classic Advertisements
These two types of marketing are often compared, with companies opting to use one or the other, or usually both. Paid advertisements tends to have a predictable pattern in which a business will pay a specific amount and the advert will attract roughly the same amount of leads each time. This interaction can be compared with a vending machine, you get what you pay for.
With content marketing, an initial investment is unlikely to see a return for at least a few months. This is because it takes time for content to attract attention and then gain a steady following. However once this happens (usually around the 6 month mark) companies tend to notice an exponential growth in leads. Therefore, content marketing is much more like an investment which pays out over time.
It is easy to see why many businesses may be dubious of content marketing at first but as a long term solution it is a much more lucrative option.
Calculating the ROI
A good way of calculating your return on investment for your content involves working out how many leads you are acquiring per set amount of money invested, e.g. £1000. To do this, you need to find out how many leads you are acquiring, directly from content. This can involve the use of programs such as Google Analytics. If you are using lead capturing forms it becomes much easier to measure the leads which are coming from content pieces as opposed to those coming from other sources. Tracking cooking are another way in which you can collect information on which pages were being viewed prior to acquiring the lead.
Once you calculate how many leads you are receiving from content this information can be used to find out your ROI. Basically, your overall investment needs to be lower than the amount you gain from lead generation, in order for you to at least break even.
Business owners can also look at their overall sales figures in order to ascertain how successful their content marketing has been. Make sure your website allows you track customer interaction all the way up until sale competition. This means you can compare the difference between direct sales from content, with direct sales from advertising.
Content marketing can also affect other aspects of business and can help to save money in other areas. For example, uploading an article which includes useful information on your delivery procedures may lead to less strain being placed on your customer service team. If your employees are spending less time answering customer questions they can spend more time in other areas, saving you time and money. Additionally, popular content can lead to greater exposure for your company and therefore its products and service. Viral marketing in particular can be extremely successful and can offer a wealth of benefits for a relatively small investment.