Content Marketing Statistics: Determining Your ROI
Before the rise of online marketing, companies had to make an average of 4 marketing impressions on their consumer before expecting a conversion. In today’s digital world, a brand needs to make at least 16 impressions before their consumer will purchase. That means that a potential buyer needs to see the brand attached to some sort of value at least 16 times. This can create an immense cost of marketing with an incredibly low return on investment.
That’s where content marketing comes in. Content has found its way to the forefront of digital marketing in recent years as a way to regularly place a brand in front of its consumers.
Why the rise in content marketing?
Firstly, traditional advertisements are a thing of the past. People fast forward through TV commercials and “Skip ad” after 5 seconds on YouTube. Demand Metric found that 86% of people skip TV advertisements and 44% ignore direct mail. In addition, according to PageFair and Adobe’s 2015 report, there are nearly 200 million active Internet AdBlock users worldwide.
Consumers demand control over what they do and don’t see, including advertisements. They don’t like feeling bombarded with ads, and they’re fighting back with force.
Secondly, there has been a significant boom in the online blogosphere. In 2012, there were 27 million pieces of content shared on the web each and every day, according to Dragon Search. Today’s society is about speed, efficiency, and knowledge. Traditional ads just don’t cut it anymore because they don’t provide the informational value that consumers crave.
Most importantly, content is a relatively inexpensive way to consistently provide branded value to your audience. If your brand needs to be seen 16 times, you want to minimize the cost, effort, and time that goes into each of those 16 marketing moments.
But beyond the cost, content has found significant success in its own right.
What are the benefits of content marketing?
1. Provides value
First and foremost, content marketing is the only type of advertising that provides actionable value to the consumer. In today’s society, information is at our fingertips, and we are constantly looking to learn more. Content marketing taps into this thirst for knowledge.
The primary focus of content marketing is to offer information, so consumers will feel connected to and valued by that brand. That connection inspires them to buy down the road. Content marketing should be utilized as a resource for the target audience.
Generally, content marketing incorporates soft-sell techniques within this value. Palm Beach Content Co. promotes this softer, informational marketing over heavier, more traditional marketing tactics.
However, the main goal is not to sell. The main goal is to give, with the conviction that giving will in turn lead to receiving (when the consumer purchases the product or service).
2. Improves brand engagement
When you provide value to your clients, you generally get engagement in response. According to IBM, 56% of marketers say that personalized, quality content improves the relationship between the consumer and the brand. This is likely because content validates the brand’s expertise in the field while also demonstrating their care for their consumer by sharing that expertise.
Demand Metric found that, of the surveyed individuals, 82% felt more positive about a company after reading their content and 78% perceived that some sort of relationship was built between the reader and the brand.
Aside from just the feeling of engagement, consumers actually spend more time on a brand’s website when there is high-quality content offered. In fact, NewsCred Insights found that audiences spend approximately 37 seconds on a content page as opposed to the typical 8 seconds on other web pages. This 4.6% bump in time spent on the page boosts engagement, brand recognition, and consumer loyalty. In addition, it helps to better optimize for SEO on Google since the bounce back rate is lower; the more time spent on your page, the more Google likes you.
3. Generates and cultivates leads
These consumer-brand relationships not only boost engagement… they boost sales. Demand Metric reported that 60% of people are inspired to look more into a product or service after reading content about it or reading that brand’s content. In this way, content marketing can generate nearly 3x more leads than traditional marketing.
Content marketing not only attracts customers, but it also makes them loyal. Providing consistent information and value keeps your customers sticking around. When people are engaged with the product and the content, it creates a faithful following. Loyal customers mean repeat sales, word of mouth advertising, and a consistent profit.
Overall, 90% of consumers find a brand’s content useful and pertinent.
4. Less expensive
Plus, content marketing is 62% less expensive than traditional marketing. The less you spend coupled with the high response and engagement rate creates an incredible return on investment for content marketing.
How is content marketing rising?
78% of CMOs see custom content as the future of marketing, according to Demand Metric. Content marketing is only going to continue to skyrocket as social platforms and sharing networks expand.
The 2014 B2B Content Marketing report found that approximately 73% of B2B organizations have someone dedicated to overseeing content marketing strategy either in-house or outsourced to a third-party service, like us at Palm Beach Content Co. Content marketing is no longer just a tiny piece in an overall marketing plan. It requires its own strategy and team in order to receive the strongest ROI.
When executed properly, content strategies are proving wildly successful. In fact, the B2B report also found that 86% of the most effective organizations have a content strategy leader.
In addition, Top Rank reported that the leading B2B marketers spend 39% of their marketing budget on content. That’s over a third of their funds being funneled into content. Why is this number so high? Because the return on investment is so sizeable. It’s so sizeable, in fact, that 82% of marketers see a positive ROI from inbound marketing through blogging and content, as found in the State of Inbound Marketing 2017 Report.
How do YOU create a successful content marketing campaign?
Despite all of the benefits of content marketing, you can’t just throw up a few blogs and expect a high ROI. An Aberdeen study found that great content is 7.8x more effective than average content… and often “average” content can actually hurt a brand’s consumer engagement.
In order to see success, you need to create quality content, track content metrics, and commit to a content strategy. Aberdeen also found that companies with a specific, written, developed content strategy have 2x higher website conversion rates than those companies that post content without a defined strategy.
If you’re in the 56% of B2B or B2C organizations without a documented content strategy, it’s time to act. The success of content marketing is only going to continue to blossom. For the highest possible marketing ROI in 2017 and beyond, you need quality content with a thought-out strategy.
Lucky for you, if you’re reading this article, you’ve already found a great potential content partner. Contact us today to see what we can do to put you in the fruitfully rising content marketing statistics of 2017.