In the world of marketing, content reigns supreme. However, a recent Parse.ly study revealed that a staggering 53% of companies lack a direct link between their revenue targets and their content strategy. This disconnect presents a significant challenge. If you’re in the dark about how your content influences your bottom line, how can you discern what’s worth investing in and what’s not?

While many perceive calculating content marketing ROI as an enigma, it’s a misconception. Attributing results to your content efforts is entirely possible, but it’s crucial to steer clear of common errors. In this article, we’ll equip you with the knowledge to gain the clearest possible understanding of your content’s performance.

Table of contents

• What is content marketing ROI?
• Calculating content marketing ROI
• The importance of ROI
• Five tips for accurate measurement

Demystifying content marketing ROI

Content marketing ROI boils down to the revenue generated from your content marketing endeavors expressed as a percentage of your investment. Some argue that it encompasses more than just revenue calculation, and to some extent, they have a point. However, it’s essential to acknowledge that all metrics in marketing ultimately converge on a single, pivotal objective: revenue generation. Driving traffic, engagement, and awareness through content is futile if it doesn’t translate into a positive impact on your bottom line. Consider this Google Data Studio dashboard as an illustration:

Image source Data Studio is an incredibly valuable marketing tool, and the metrics it displays represent tangible content marketing achievements. However, these metrics alone don’t paint the complete picture. To accurately assess the effectiveness of your efforts, you need to factor in the financial investment and effort expended on the campaign. Without this comprehensive perspective, it’s impossible to determine what strategies are worth replicating and scaling.

Content marketing ROI formula

Calculating content marketing ROI is straightforward: subtract content marketing spend from the revenue generated by content, and then divide the result by the spend. Let’s assume your monthly content marketing investment amounts to $7,500, and you can attribute $10,000 in revenue to your content efforts. ( ($10,000 – $7,500) /$7500 ) x 100 = 33.3%. This calculation indicates a content marketing ROI of 33%. In simpler terms, for every dollar spent, you’re gaining back $1.33.

Conversely, suppose you’re spending $5,000 per month on content marketing, and it’s yielding 35 users valued at $49 each, resulting in a return of $1,175. (($1,175 – $5,000) / $1,175) x 100 = -65.7%. In this scenario, your content marketing ROI is -66%, meaning you’re experiencing a financial loss.

Why calculate your content marketing ROI?

A clear understanding of your content marketing ROI is paramount for any successful strategy. Here’s why:

1. Strategic investment allocation

Recently, I had a conversation with a SaaS company founder who was interested in bringing me on board as a freelance writer. He understood that 80% of his customer acquisition and, consequently, his revenue, originated from the company blog. Armed with this knowledge, he decided to ramp up his investment in content and SEO. His decision stemmed from the ability to directly correlate his company’s success with content marketing, particularly blogging as a high-performing channel. And it’s worth noting that he’s not alone:

This underscores a crucial point: being able to trace revenue back to a specific channel or content type empowers you to make informed decisions about your marketing budget. It’s about prioritizing what truly moves the needle. Keep in mind that content marketing doesn’t yield uniform results for everyone. While blogging might be your recipe for success, your competitors might find their sweet spot on social media. By delving into your data to determine your content marketing ROI, you gain valuable insights into:

• Content that resonates with your audience and drives conversions
• Areas where you can trim your spending
• Areas that require adjustments in tactics or overall strategy

2. Securing stakeholder buy-in

While content marketing offers a multitude of benefits, it’s not without its costs. From writers’ salaries to essential tools and other related expenses, the costs can add up. When it’s time to present business updates to stakeholders, securing their continued support for content marketing requires demonstrating its ability to generate revenue. Presenting traffic and session data alone won’t suffice. At the end of the day, it’s the financial returns that sustain a business.

3. Attracting customers

If your goal is to get more clients to your marketing agency, demonstrating a clear link between your content and revenue generation becomes a powerful tool for persuading potential clients to choose your services. In the realm of B2B marketing, today’s savvy buyers are no longer swayed by mere traffic metrics. “We achieved a 70% revenue increase within x months” holds far more weight than “We generated x pageviews in x months.” My experience selling traffic in the past has taught me this firsthand. It’s a challenging sell in today’s market. While driving traffic to your website is undeniably important, B2B buyers prioritize understanding how content marketing aligns with their bottom-line metrics.

Measuring your content marketing ROI accurately

Despite the straightforward formula for content marketing ROI, I frequently observe people overlooking critical aspects. To ensure the most precise reflection of your content marketing performance, incorporate these five essential tips:

1. Implement robust tracking mechanisms

Maximizing the value of your content marketing ROI calculation hinges on the ability to attribute returns to specific content formats and channels. This necessitates, above all else, having the appropriate tracking systems in place. This translates to employing tactics such as:

• Dedicated landing pages and thank-you pages tailored to specific content and campaigns
• Utilizing goals and events in Google Analytics
• Leveraging UTMs or other tracking parameters to analyze performance by source, medium, campaign, and content type

Consider using Google’s UTM builder for generating tracked links. By implementing these strategies, you gain visibility not only into which offers are converting best but also which channels or even specific blog posts are driving the most valuable traffic to those offers.

2. Define and assign value to your conversions

Many businesses run various marketing initiatives where a conversion doesn’t directly translate to a sale. It’s essential to assign a monetary value to these conversions nonetheless. For instance, if a gated content download consistently generates an average of 70 leads monthly, and 10 of those leads convert into paying customers, you can use this data to assign a value to the leads generated by that specific campaign and even the traffic directed to the landing page. We offer valuable tips on determining conversion values here. While this process might involve collaborating with your sales team and analyzing data from sources like Google Analytics and Search Console, the ideal scenario involves using a CRM and marketing automation software in conjunction with tracked links and campaign-specific landing pages. This approach provides the most accurate view of your content’s performance. It’s worth noting that a CRM can also shed light on the various content pieces a user engaged with throughout their buyer journey.

3. Identify your key metrics

Assigning monetary values to your conversions and calculating content- and campaign-specific ROI requires a clear understanding of the metrics that warrant tracking. This enables you to gauge whether your content marketing is on track and identify areas for optimization or improvement. Here are some essential metrics to focus on, depending on your objectives:

4. Account for ALL costs

While this might seem self-evident, it’s often overlooked by content marketers. Remember to factor in the costs associated with all the tools you employ. This includes: Content Production Costs Beyond compensating freelance writers, consider expenses such as:

• Keyword research tools
• AI copywriting tools
• Editing and uploading content to your CMS
• Image design Content Distribution and Optimization Costs Content distribution channels encompass paid, earned, and owned channels. While many platforms, such as Facebook, Reddit, and Quora, are free to use, you might also be investing in:
• Paid advertising campaigns
• Social media management tools like Hootsuite and Buffer
• Social media content generators
• Social listening tools like Mention
• Social media or community manager salaries
• Analytics tools (excluding the free Google Analytics)

When dealing with tools, you can make educated estimates. For example, if you spend $100 per month on a content optimization tool and publish 10 articles monthly, you can allocate $10 per article for optimization.

5. Embrace imperfection

Imagine a potential customer stumbles upon one of your blog posts while researching solutions to a specific problem. They see your brand as a potential answer but aren’t ready to commit immediately. Two weeks later, they conduct a Google search, delving deeper into your brand before landing back on your website and signing up for a free trial. While the channel they used to convert will be credited, what about the initial blog post that introduced them to your business? Tracking top-of-funnel content offers within a content marketing funnel can be more challenging. It’s unrealistic to expect to capture every nuance of your content marketing ROI with absolute precision. However, by adhering to the tips outlined above, you can achieve a reasonably accurate calculation that provides valuable insights into your strategy and informs improvements. Remember, underreporting is more probable than overreporting.

Calculate your content marketing ROI today

Calculating content marketing ROI isn’t an insurmountable task. However, it’s easy to overlook crucial details and create unnecessary complexity. By following the guidance provided, you can obtain a reasonably accurate calculation, enabling you to comprehend and enhance your content strategy effectively. To summarize:

• Content marketing ROI is determined using the formula: (return – cost / cost) x 100
• Understanding your content marketing ROI is crucial for allocating your budget wisely and identifying high-performing channels.
• Accurate measurement relies on robust tracking, defined conversion values, and a focus on the right metrics.