Kapost Content Marketing ROI

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Why content marketing can become your most productive channel in partnership with created by. Content Marketing. ROI. The “soft” benefits of content ...
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in partnership with

Content Marketing

ROI

Per dollar, content marketing produces

3 times more leads

YEAR 1

BLOG POST

PODCAST

YEAR 2

VIDEO

INTERVIEW

ARTICLE

YEAR 3

ANNOUNCEMENT

INFOGRAPHIC

WHITEPAPER

EBOOK

The “soft” benefits of content marketing are obvious: public trust, more engaged

Why content marketing can become your most productive channel

prospects, happier clients. But what about the hard benefits. What about ROI? “Content Marketing ROI” is the first study to address the fundamental questions: How much does content marketing cost and is it a better financial investment than other marketing strategies? The answer is, “Yes.” The eBook explains why. continue reading

TABLE OF CONTENTS Introduction The New Rules of Marketing This Study

Content Marketing Analysis Content Marketing Operation · Content Plan · Content Organization: Managing Editor, Organizational Listeners, Internal Contributors, External Contributors, VP, Marketing, Revised Content Plan

Content Marketing Costs Content Marketing Benefits

Comparison · Content Marketing Summary: 24 Months · Paid Search Summary: 24 Months

Benchmark: Paid Search Marketing Conclusions Content Marketing ROI Measures Up Content Marketing is Not a Campaign Content Marketing Must Be Managed as a Business Process

Want to get skip ahead to the ROI calculations?

THE ICONOGRAPHY USED IN THIS EBOOK

BLOG POST

PODCAST

MID-SIZED BUSINESSES

VIDEO

INTERVIEW

LARGER-SIZED BUSINESSES

ARTICLE

ANNOUNCEMENT INFOGRAPHIC

LEAD

WHITEPAPER

EBOOK

INTRODUCTION

The New Marketing Rulebook The rules of marketing have changed.

that online display ads have a click through rate of less than one-tenth of one percent. Ad Overload:

Real Information is Elsewhere:

The Consumer is in Control:

So what can marketers do?

This Study

Content publishers by industry

Tech

Retail / eCommerce

Financial

Consumer Goods

Manufacturing

Services

Content Publishers by revenue

23 GREATER THAN

12

$100M - $1B LESS THAN

15

$1B

$100M

CONTENT MARKETING ANALYSIS

Content Marketing Operation CONTENT PLAN blog post

podcast

handheld video

interview

article

media announcement

5

per week

S M T W T F S

1 infographic

professional video

per month

whitepaper

ebook

CONTENT ORGANIZATION

Managing Editor

Community Manager

Internal Contributors

External Contributors

REVISED CONTENT PLAN

M

T

W

T

F “CURATION”

“CURATION”

“CURATION”

“CURATION”

MAJOR PIECE

CURATION POST

Content Marketing Costs operation. They are summarized in the following two tables, one for mid-sized businesses and one for larger organizations. CONTENT PLAN

Content Marketing Costs: Mid-Sized PERSONNEL Managing Editor CONTENT Blog Post Costs Premium Content Costs TOOLS Software & Hosting

monthly $6,667 $1290 $2,500 $1,500

Total Expenses

$11,957

Content Marketing Costs: Larger-Sized

monthly

PERSONNEL Chief Content Officer Managing Editor CONTENT Blog Post Costs Premium Content Costs TOOLS Software & Hosting Total Expenses

$16,667 $8,333 $1720 $3,500 $2,500 $32,720

mid-sized businesses

Fully loaded costs

$80,000/yr

$150/post $2,500

/premium content

larger-sized businesses

Fully loaded costs

$100,000/yr

Fully loaded costs

$200,000/yr

$200/post $3,500

/premium content

Total expenses for the content marketing operation

Monthly Recurring

mid-sized

$11,957

larger-sized

$32,720

Content Marketing Benefits quality

SITE VISITS PER MONTH

100,000 larger-sized 75,000 mid-sized 50,000 25,000

Month 1

2

3

4

5

6

7

8

9

10 11 12

13

14

15 16

17

18 19 20 21 22 23 24

The chart above shows the traffic calculated for the two classes of operations in this study. Over time, the greater resources invested in the larger operation yields stronger results.

$25,000 $20,000 larger-sized $15,000

mid-sized

$10,000 $5,000 Month 1

$500

2

3

4

5

6

7

8

9

10 11 12

13

14

15 16

17

18 19 20 21 22 23 24

100,000 larger-sized 75,000 mid-sized 50,000 25,000

Month 1

2

3

4

COST PER LEAD

5

6

7

8

9

10 11 12

13

14

15 16

17

18 19 20 21 22 23 24

$25,000 $20,000 larger-sized $15,000

mid-sized

$10,000 $5,000 Month 1

$500

2

3

4

5

6

7

In first 5 months costs/lead drop

80%

$375

8

9

10 11 12

13

14

15 16

17

18 19 20 21 22 23 24

The long-term yield of content marketing is illustrated in the chart above, which shows the cumulative cost per lead over the 24 months, or how much has been spent divided by how many leads have been generated over time.

$250 $125

Month 1

2

3

4

5

6

7

8

9

10 11 12

13

14

15 16

17

18 19 20 21 22 23 24

COMPARISON

Content Marketing to Paid Search CONTENT MARKETING SUMMARY

PAID SEARCH SUMMARY

Cost per lead: 24 months

$125

mid-sized

paid search

larger-sized

$109/

paid search

expenses: $437,376 leads: 4,032

$108/

expenses: $1,452,984 leads: 13,488

$100

Content marketing costs

31% less than paid search

Content marketing costs

41% less than paid search

content marketing $75

$75/

expenses: $312,560 leads: 4,172

content marketing

$64/

expenses: $869,060 leads: 13,569

$50

BENCHMARK: PAID SEARCH MARKETING What is the cost per click?

Cost per click across several segments derived from Google’s Traffic Estimator tool life insurance

$16.59

divorce laywer

diabetes medicine chicago physical therapy

$10.88

$4.74

$4.17 passport services

dallas real estate

$2.50

$2.69

tax advisors trucking services

running shoes

$3.58

$2.42 mexico vacation

$1.86

$2.14

dvd player baseball cards

quilting supplies

$0.82

$1.27 $1.22

$4.22 average cost per click

an average cost per lead of $109 / $108.

CONCLUSIONS

Content Marketing ROI Measures Up Many Factors: Content Expense

Conversion Rates Keyword Prices

Content Marketing is Not a Campaign

becoming

owning

The graph below compares the cumulative number of leads generated per $1000 spent from the study’s content marketing operation (large organization) and its paid search campaign:

36

Once you’ve built your audience, your ROI goes up since you no longer have to pay rent to the media

31 leads

/$1,000

30

CONTENT MARKETING

24 18

9 leads /$1,000

12 6

PAID SEARCH

Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Content Marketing Must Be Managed as a Business Process

ABOUT THE AUTHORS About Kapost

About Eloqua

About Eloqua & Kapost