BUSINESS PLAN WITH CALCULATIONS ROI INVESTMENT IN CONTENT MARKETING
Let us analyze the calculation of the payback of content marketing activities. In the coming years, content marketing has become the basic vector for the development of almost any business. Local blog sections are launched by everyone: banks, online agencies, information portals, online stores, construction companies and so on.
It is difficult to call such an innovation idea. However, few people still know how to correctly calculate the ROI (profitability – an indicator of return on investment) of content marketing investments in Internet projects.
HOW TO DETERMINE THE EFFICIENCY OF FINANCIAL INVESTMENTS IN CONTENT-MARKETING
On the horizon of the possibilities of modern advertising technologies, a lot of questions arise:
How can you determine the effectiveness of content marketing?
How to determine the profitability of an article written by your content manager, for example, 3 years ago?
What to do with marketing tests?
So let’s try to figure it out.
What does the algorithm for calculating the payback of content marketing look like?
If you are not managing a business project from scratch, then calculating ROI will not be a problem for you. This is a measure of return on investment. As for investing in marketing activities, in this case the same principle (theses) is considered relevant:
First of all, we find out how much money we received from one financial investment.
Important: such calculations can be carried out both for an autonomous source of traffic, and for content marketing in general.
The calculations themselves are quite simple: if the result is more than one, then we can talk about return on investment (if the result turned out to be different (that is, less than one), then in the absence of adjustments in the framework of the marketing strategy, you risk losing all the money draining the budget for advertising )
CONTENT MARKETING ROI CALCULATION FORMULA
The algorithm for calculating the ROI of content marketing activities is as follows: the profit from buyers who were involved in a sales funnel through content is divided (/) by the cost of developing a content solution plus (+) the price of distributing content materials.
Is it possible to determine the real profitability of content marketing?
This is all complicated. Directly with calculations, everything is easy. Difficulties arise at the stage of identification of revenue and expenditure. The fact is that it’s rather difficult to determine whether the revenues in the expenditure formula for marketing are relevant.
In order to calculate the payback indicator correctly, you need to clearly understand how exactly each of your clients has come to you. In a way, this can be found out with the help of Google Analytics or other services for tracking statistics on visits to sites or applications.
However, there are cases (often) when a user watches your blog for months, after which, as a result, he makes a purchase from organic search. And according to the results, Analytics estimates this conversion activity as a direct visit.
What can be done:
Find out from buyers how they came to you (do they track the activity / regularity of filling the blog, do they browse posts on social networks and so on).
Yes, the client does not always remember how he found a particular brand, but the probability of a correct ROI calculation certainly increases.
Calculation of project costs for content marketing
How to calculate the expense for content marketing?
The cost of developing a content solution. Recommendations: a) find out how much the work of the author of articles, web designer, layout designer and coordinator of the web project costs; b) be sure to consider the costs of content solutions that (so far) are not applied by you (the money has already been spent on them anyway).
The cost of promotion of content. Tips: First of all, determine how much money was spent on SEO-promotion, SMM, targeting activity, e-mail marketing and so on.
EXAMPLE OF CALCULATION OF ROI INDICATOR FOR INVESTMENTS IN CONTENT MARKETING
Organization – restaurant.
The revenue part is the receipt of visitors by the promo code, which can be found exclusively on the resource (that is, income, for example, in April amounted to 1,200,000 rubles).
The expenditure side is the development of a blog, the cost of which amounted to 250,000 rubles.
Key expense items:
participation of the chief editor – 60 000 rubles;
copywriting (rewriting) – 20,000;
web designer – 4,500;
a total of 114,500 were spent.
We consider ROI as follows: 1,200,000 / 250,000 = 4.8.
Conclusion: this parameter is more than 1, which means it is very acceptable. So far so good.