ROI of Organic Content Vs Paid Ads in 2018 – Case Study

Marketers often debate over the millennial question – whether to invest in paid advertisements or stick to traditional organic content. There is no doubt about the rapid increase of content marketing over the given years to increase the revenue and generate leads! People trust and value brand content where the ROI can be measured upto a certain level.

Distributing content amongst the fixed audience ensures that they will be read by the right people. Paid advertisements, when worked with content marketing can prove to be more effective in deriving successful ROIs. Content is definitely the reigning king, but distribution rules the land.

Brand awareness is a key aspect to paid advertisements with ROI depending on the investment – what we spend and the returns – what we get out of it. To determine a high ROI, at the base level we need to understand how much traffic is diverted to a website with organic reach which further converts to high-quality leads. These leads are then converted into sales.

THE CONTENT MARKETING EQUATION

  • 16% is the average number for converting traffic to leads across major industries.
  • SEO leads tend to convert at a higher rate (14%) than outbound paid leads (2%)

Using these numbers as a benchmark, we have a formula to derive the reach per month of content marketing.

Monthly Visitors x 16% Organic Traffic to lead conversion rate = X leads/month

X leads/month X 14% lead to sale conversion rate = X sales/month

So if a business gets 10,000 monthly visitors:

10,000 X 16% = 1600 leads/month

1600 X 14% = 224 sales/month

According to a survey with Popular Social Media platform – Facebook users had a steady organic engagement which was decreased to just 2% of their reach to hook brands and businesses to paid advertisements to increase the reach. With organic reach out of question, the marketers have no choice but to invest in paid campaigns to promote their campaign across this platform.

Case Study – Mother Diary

After the decrease in organic reach on Facebook from 2% to 0%, this is a case study of India’s most popular brand had a content marketing plan to engage with the millennial generation through Facebook.

Facebook remains to be the most used social media platform even in 2019 with an impressive 41% users above the age of 65.

OBJECTIVE – The objective was to create awareness about the brand amongst the chiliastic audience keeping in mind the brand value and improving the organic reach.

Content Marketing – Mother Diary created an impressive and creative content plan that resonated well with the audience keeping in mind the target audience and limited ad spends. Their creativity revolved around striking the right balance between brand and the viewers.

Their creativity covered Indian festivities, the KIKI challenge, the famous movie NUN, PUBG and fathers day amongst a few other popular topics and was an immediate hit with their audience.

RESULT – The creative’s were trending across social media with a 40% organic reach and 78% change towards brand sentiment as portrayed by a survey through Facebook alone. With the help of the paid campaign, Mother Diary earned 4000 fans in a single fiscal year!

Content marketing when collaborated with paid advertisements provides a better scope of growth and outreach for the brand. To measure the rate of success of your content plan use the 4 KPI’ s as depending on the brand – website traffic, leads generated, conversion rate and direct sales.

Understanding how to measure content marketing ROIs is imperative to your businesses success. By putting a small investment behind your content, it suddenly reaches out to more people with better traffic and targeted audiences and will help with your organic reach in the long run as well.

 

At the end of the day – it is your choice, as a brand or business to choose whatever deems right for you (or maybe hire us to run a campaign for you )

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