The good folks at Blog Business Summit share an interesting formula for measuring the return on investment of writing activities. Since blogging can be viewed as the art of copywriting applied to the technology of the 21st century, we catalog/online retailers finally have a way to quantify the financial impact of writing great copy.
For instance, assume that somebody Google's the following term: Michael Smith President And CEO. The top result is not the business this individual runs. The number one site, according to Google, is my blog. This fledgling business should have some sort of blog, so that searchers are directed to the appropriate content. Google is driving traffic to my site each week, traffic that should be going elsewhere. There are many examples of terms that drive traffic to my site, traffic that should be going to your business. Here are two additional examples.
Of course, blogging costs money. Is it worth doing? An adaptation of an ROI formula is listed below:
Blogging ROI = (ADBT * CR * AOS * PF) / (HSB * S) where:
- ADBT = Average Daily Blog Traffic
- CR = Percentage of Blog Visitors Purchasing Merchandise
- AOS = Average Order Size
- PF = Profit Factor, the Percentage of AOS that is converted to profit.
- HSB = Hours Spent Blogging, Each Day
- S = Average Hourly Salary + Bonus + Benefits
- Your business blog gets 200 visitors per day.
- Three percent of your blog's visitors decide to purchase merchandise.
- The average order size of a blog visitor's purchase is $150.
- Twenty percent of each purchase is converted to profit. The profit factor = 20%.
- The person you hired to blog spends three hours per day writing content.
- This person earns $80,000 per year including bonus and benefits, or, about $40 per hour.
- Blogging ROI = (200 * 0.03 * $150 * 0.20) / (3 * $40).
- Blogging ROI = ($180) / ($120) = 1.5.
Technology finally allows businesses to truly direct traffic to a site via copywriting. It has become important to write content that is search-friendly. The ROI formula, illustrated above, demonstrates that it isn't hard to justify the effort.