Measuring ROI: Content Marketing
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- Maud Byrd
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1 The Art and Science of Measuring ROI: Content Marketing Defining the R in ROI
2 2 About IMI Internet Marketing Inc. is a full service, integrated digital marketing agency that exists to provide opportunities for everyone we encounter. We are a business-minded organization that uses a datadriven approach to designing and optimizing the ideal marketing mix for each client. As a full service agency we offer sophisticated Search Marketing strategies, Social Media, Content Marketing, Analytics, Marketing strategy, Web Design, consulting, and more. No matter what the marketing mix, our goal is to always achieve and exceed the goals and metrics we collectively set. Contact us today to learn more about Content Marketing and other digital strategies we are performing for brands all over the world! Request Consultation >
3 3 About the Author Labeled Content Marketing Strategist, Becca has had the tropical experience of building IMI's Content Department from sea level. Invested in merging creativity and strategy, she also serves as the Chief Content Officer (CCO) at ecopywriters.com, a Content Creation Marketplace. Becca James Content Marketing Strategist FOLLOW ME ON CONNECT WITH ME ON LINKEDIN linkedin.com/in/beccajames ENGAGE WITH ME ON GOOGLE+ google.com/+beccajamesimi Speaking of content, some of the most highly authoritative publications have picked up Becca's projects such as Forbes, PC Mag, CNN, New York Post, and National Geographic. How many times can she say content in one ebook? Let's take a look. Editorial Team: Brent Gleeson, Justin Goodman, Devon DeMars, and Phong Chieng
4 4 About this ebook As digital communication outlets evolve, message delivery systems may change, but the core principles of effective marketing remain the same. The relationship between consumer and brand still begins with one simple word: conversation. If we sit down together with our target audience and engage in a two-way dialogue, we have the opportunity to gain a complex understanding of buyer needs, demands, goals, preferences, fears, motivations, and decision-making behaviors. As we listen, they share their stories. And if we respond with content that they find interesting and meaningful, a sense of trust is forged that benefits both parties. In this digital age, manipulative one-directional advertising models are ineffective. Now, two-way marketing based on core principles and meaningful brand-consumer dialogue has an official name and is in need of a solid strategy: Content Marketing. This ebook can help marketers leverage modern digital tools to engage consumers using timeless brand development strategies. Find the tools you need to launch your first campaign or give your existing program a ground-level reboot. Thank you for reading!
5 5 Table of Contents 1. Content Marketing: Find the Link Between Marketing Strategy and Financial Success...6 1a. Leveraging Your Resources While Managing Risk 8 1b. Measuring the Value of Content Marketing 9 1c. The Challenges of Measuring ROI Predicting ROI: How Much Should You Invest? Goal Setting and KPIs: Laying the Groundwork for Success a. Goal Setting: Begin with the End in Mind 17 What does it mean to build your brand? 17 What does it mean to generate conversions? 18 3b. KPIs: Key Performance Indicators 20 Brand KPIs 20 Conversion KPIs Measuring and Reporting ROI a. Tools and the Use of Data Analytics 24 4b. Customize Reports Based on Your Audience 26 Content Performance Reporting 26 Channel Level Reporting 26 Campaign Level Reporting The Sweet Taste of Success: When Will You See Results? a. Patience is a Virtue 30
6 6 1. Content Marketing: Find the Link Between Marketing Strategy and Financial Success
7 7 If you threw a hashtag before Content Marketing every time it was mentioned, it would compete with Justin Bieber on Twitter. In fact, the buzz surrounding this term can easily obscure meaningful messages about what content is, how it works, and how it can generate solid and measureable returns for your growing company. Content Marketing costs 62% less than traditional marketing and generates about 3 times as many leads. (Kapost) To rise above the noise and find real value in any marketing investment, CMOs can keep this simple message in mind: strong marketing strategies are built on a foundation of narrative, intuition, and smart financial allocation. By identifying your target audience s online presence, values, and pain points, you can accurately leverage your content creation and distribution, making it easier for marketing and financial executives to work together in acquiring leads, closing deals, and creating conversions.
8 8 1a. Leveraging Your Resources While Managing Risk So you ve accepted that Content Marketing is inevitable, now how can you get the most out of your Content Marketing strategy? CMOs and CFOs wouldn t occupy their current positions if they took reckless risks or no risks at all. A focused, strategic Content Marketing plan can be considered a manageable risk, one with a high potential for return. So what s the secret behind a successful plan? Measurability.
9 9 1b. Measuring the Value of Content Marketing Meaningful investments begin with controlled ROI analysis. So before you formulate your content plan, clarify your campaign goals. Are you looking for ways to generate: a) Leads b) Sales c) Traffic d) Brand Awareness These goals all have value, however, defining precise goals with complementary campaigns and realistic metrics help build a stronger link between budgeting resources and meaningful results.
10 10 1c. The Challenges of Measuring ROI ROI Measurement Challenges 79% 22% 23% Don't have the tools to measure effectiveness 37% Are tracking true measures of engagement and behavior like time spent with content Companies are trying to break down internal silos to better coordinate and integrate marketing efforts Lack clear measurement strategy (Source: Marketing TechBlog) Measuring the impact of your Content Marketing strategy on revenue can be challenging. Some of the most common challenges that content marketers face are: 1. A lack of proper tools to measure effectiveness: Can your software measure exactly how many visitors arrive at each page of your site and track how long they stay? Each time a page is rendered, you ve created enough interest to generate a click. But what happens next? Precision tools are necessary to determine consumer behavior and to track the rate of change in these behaviors over time. Guesses and coarse estimates won t do the trick.
11 11 2. A communication gap between marketing and sales: A lack of cooperation between marketing and sales also known as closed loop reporting leaves each department operating in its own sphere with its own strategies and its own definitions of success. Marketing campaigns can t reach their full potential if sales feedback is weak or non-existent (and vice versa). Remember that sales often communicates with the audience that you are trying to reach. Marketers tend to overlook real people's needs with figurative, target personas. Exploit the information the sales team has, and build a content strategy around it. 3. Incorrect attribution of ROI to a specific content stream: If your campaign includes a webinar, an ebook, and a brand new blog, and your sales increase by 11 percent, which content stream is responsible for this growth? If you make the wrong assumption, you may miss an opportunity, misallocate future budget resources, or worse. But if you can clearly attribute your sales boost to just one of these streams, you can celebrate the win and forge ahead. Quick tip: use Google Analytics to set up a page level or session level custom variable for the on-site content piece to award conversions to the right source.
12 12 2. Predicting ROI: How Much Should You Invest?
13 13 B2B marketers plan to increase spend on Content Marketing in % 92% of marketers plan to spend money on Content Marketing marketers plan to spend 50% of their marketing budget on Content Marketing 58% 60% B2C marketers plan to increase spend on Content Marketing in 2014 planned increase in spend on Content Marketing 20% (Source: Marketing TechBlog) Let s take a few preliminary steps before you calculate an ideal balance between the cost of your Content Marketing plan and your estimated returns. Once you ve taken these steps, you can use your resulting calculation to develop a plan that can fit your budget and grow your business. After all, Content Marketing is a long-term investment. First, determine the cost of your current marketing program. Account for both tangible and intangible resources including time investments and opportunity costs. Then evaluate your current success metrics like traffic flow, bounce rates, new versus returning visits, behavior funnels, and most important conversion rates. Lastly, compare your cost of customer acquisition (COCA) with customer lifetime value (LTV).
14 14 Once you ve gathered this data, you ll have the metrics you need to estimate returns on each of your potential Content Marketing options. Keep in mind that your COCA should never be higher than your LTV. In other words, the resources you invest in outreach, new client contacts, or entry into new market sectors should always fall below the lifetime value of each resulting relationship.
15 15 3. Goal Setting and KPIs: Laying the Groundwork for Success
16 16 Your Content Marketing plan must be structured around your company s specific goals. These bottom-line initiatives can be divided into two basic categories: brand building and conversion generation. Both of these categories are essential to growth and success, and for each campaign, you must begin by envisioning long-term, measurable results. After the first step goal setting emphasize the identification of KPIs, or key performance indicators that will allow you to realistically measure the success of a targeted Content Marketing effort. Organizational Goals for B2B Content Marketing Brand Awareness Lead Generation Customer Acquisition Thought Leadership Engagement Customer Retention/ Loyalty Website Traffic Lead Management/ Nurturing 47% Sales 45% 64% 57% 74% 71% 68% 57% 82% Organizational Goals for B2C Content Marketing Brand Awareness Customer Acquisition Customer Retention Loyalty Engagement Website Traffic Sales Lead Generation Thought Leadership 51% 50% 33% Lead Management /Nurturing 71% 65% 64% 62% 79% 28% (Source: Content Marketing Institute and MarketingProfs)
17 17 3a. Goal Setting: Begin with the End in Mind What does it mean to build your brand? For most companies, a strong brand begins with: 1. Awareness: Customers should recognize your business in the larger marketplace. 2. Loyalty: Customers should return to your business after initial contact or transaction. 3. Engagement: Customers should develop a positive personal relationship with your brand and product experience. All three of these goals start with contact and are followed by trust. Both contact and trust begin with effective content. When visitors find your content interesting and valuable, a strong relationship begins. Build credibility and likability, and your audience will begin to align your brand with their values.
18 18 What does it mean to generate conversions? This equation is a simple, concrete result of strong brand building. Excellent conversions begin with great Content Marketing and will eventually generate: 1. Leads: Encourage content downloads, social media sharing, blog conversations, and positive online buzz (organic ORM). 2. Opportunity: Expand reach into existing markets and attract new audiences. 3. Sales: Turn interest into revenue by turning clicks, visits and curiosity into hard sales.
19 19 (Source: Eloqua Blog)
20 20 3b. KPIs: Key Performance Indicators Once you ve clarified your Content Marketing goals, how can you set a course, move forward, and measure your progress along the way? KPIs will let you know how close you are to your targets, and if you go off course, keeping a close eye on your performance metrics can allow you to hit reset and make necessary changes to your long term plan. Brand KPIs Brand indicators include mentions, mentions as compared with those of competitors, key-phrase mentions, sentiment, views, shares, likes, and re-tweets. Conversion KPIs Conversion KPIs are granular numbers based on hard dollar amounts. These include purchases, purchases minus returns, and revenue increases across product lines.
21 21 Category Goal Description KPIs BRAND Awareness Customers recognize your business in the larger marketplace. Growth in overall traffic to website across multiple channels Time spent on individual pieces of content Pages per visit Loyalty Customers return to your business after an initial contact or transaction. Return visits Social media shares, likes, retweets across channels Subscriber count Engagement Customers develop a positive personal relationship with your brand and product experience. Return visits Social media shares, likes, retweets across channels Content Downloads CONVERSIONS Leads Encourage content downloads, social media sharing, blog conversations, and positive online buzz. Subscriber count Aggregate growth of leads New signups/landing page conversions Opportunity Expand reach into existing markets and attract new audiences. Funnel progression rate % drop-off Sales Turn interest into revenue by turning clicks, visits and curiosity into hard sales. Deals closed Monthly recurring revenue Customer lifetime value
22 22 4. Measuring and Reporting ROI
23 23 Now that you understand the basics of goal setting and using key performance indictors to measure your current success and future growth, it s time to start weighing your investments against your results. And of course, a calculated ROI won t take your business very far until you report your analysis and its outcome to C-level decision makers. 41% of marketers confirm Content Marketing s positive ROI. (Kapost)
24 24 4a. Tools and the Use of Data Analytics Identify the right tool to measure each one of your chosen KPIs. For example, which approach or data analysis can help you accurately measure retweets? Or bounce rates? How about that behavior funnel that illustrates how viewers are engaging with your content? Which CRM software platform can show you the overlap between site visits and sales? In other words, which visitors stayed to make a purchase, and which ones weren t captivated enough to seal the deal? This knowledge will also lead to opportunities in creating appropriate content for each step in the sales cycle. Apply the right tool to each metric, and you ll see the tangible results of your efforts materializing in the form of graphs that reveal changes quarter by quarter. It is also important to choose tools that complement your existing systems. For example, does your existing CRM software integrate seamlessly with your new marketing software? You ll want to ensure that your tools can synchronize to measure the same data points.
25 25 KPI Measurement Tool Reach Unique Visits Google Analytics Geography Google Analytics Mobile Readership Google Analytics Engagement Bounce Rates/Time On Site Google Analytics Heat Maps/Click Patterns CrazyEgg Page Views Google Analytics Sentiment Comments Geckoboard Social Sharing Geckoboard Keep in mind that traditional ROI analysis differs greatly from Content Marketing ROI. Content Marketing is long game: results are organic and multi-dimensional. Social engagement, page views, average time spent on each page, and general traffic volume are all factors that can influence brand awareness and conversions. Accept that some of your Content Marketing ROI material is happening off the defined metric stage, at times offline, and that if you engage in the process, it will eventually arrive in unforeseeable success funnels.
26 26 4b. Customize Reports Based on Your Audience Once your tools are identified and raw data starts flowing your way, how can you present your analysis to your company s CMO? How about your CFO? Presenting your ROI reports for each audience will require a different area of focus and a different level of granularity - broad trends versus highly specific micro-data. Content Performance Reporting Identify the content that brings the best results. Then examine this content for tone, style, CTA and approach. Break the results down by channel or by campaign. Channel Level Reporting Channel level reporting will help you find your most effective channels (blog, Twitter feed, etc), ultimately providing direction as to where your audience lives online and where you should allocate budget for the next quarter.
27 27 Campaign Level Reporting You can also break down your top performers by specific campaign or rollout. In the end, your ROI and reporting strategy will help you craft your content for maximum effect. As you move forward, keep an eye on your goals (lead generation, sales, branding, and traffic) and KPIs, and recognize that each stream of content should have a specific tone, objective, CTA, and core message that relate back to your original brand identity. When you break each content stream down into monthly and yearly editorial calendars, you ll transform a series of distinct deliverables into a fluid narrative woven tightly around your brand.
28 28 5. The Sweet Taste of Success: When Will You See Results?
29 29 Launching your new Content Marketing plan can be an exciting moment, but keep in mind that marketing through content channels can be considered a strategy, not a campaign. The impact of your efforts and ideas will be realized Cost-per-lead for paid search over time was nearly 3.5 times that of cost-per-lead for Content Marketing (Kapost and Eloqua) over the long-term, not after a short, predictable sprint. A one-and-done campaign will typically include a clear before and after, and post mortems and lessons learned can lay the foundation for the next launch. But a long-term strategy doesn t work this way. Instead, sound Content Marketing generates data on a rolling basis, so as a business continues to publish, measure, publish again, and measure again, a steadily rising ROI will begin to manifest.
30 30 5a. Patience is a Virtue COST PER LEAD Long-term yield of Content Marketing $25,000 $20,000 $20,000 $10,000 larger-sized mid-sized $5,000 Month In first 5 months costs/lead drop 80% In a modern, organic marketing landscape, instant advertising metrics are out. Ads and instant gratification have given way to long-term success based on planning, tracking, and consistency. As you identify growth and accumulate an increase in conversions, you ll compare your numbers to industry averages to determine where you stand. And when this happens, you ll start reaping the rewards that come from quality content, consistent publishing, and constant contact built around the needs and behaviors of your target audience. The long-term yield of Content Marketing is illustrated in the chart above, which shows the cumulative cost per lead over 24 months, or how much has been spent divided by how many leads have been generated over time. (Source: Kapost and Eloqua)
31 Hope you enjoyed reading.
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