How Social Media, Content Transform Marketing from Expense to Investment

Sales leads generated through inbound marketing–the combination of content marketing, blogging, social media, website chat and SEM–cost 61% less than those produced through traditional demand generation techniques (e.g., online or print advertising, trade shows, telemarketing, direct mail) according to research from HubSpot.

Social Networking and Content Marketing are Investments

Photo credit: DIY Marketers

But as compelling as those cost savings are, the arguably larger financial impact is that social and content strategies change much of what marketing does from an expense (an expenditure tied to immediate consumption) to an investment (an allocation with a long-term payback). Buying a bag of apples at the grocery store is an expense; planting an apple tree is an investment.

While some aspects of inbound marketing (SEM, email marketing, webinars) clearly remain in the expense column, three of its key components clearly should be classified as investments, as long-term appreciating assets.

Blogging: for any new business blog, traffic typically starts out modest but grows over time. One reason is that reader subscriptions (when via email or RSS feed) tend to grow over time as the blog establishes its voice and readership. But the larger factor is SEO: the longer a blog is actively contributed to, the more content there will be for search engines to index, the more links it will attract, and hence the more search-driven traffic it will enjoy.

The major search engines also seem to give blogs more respect over time. Newly-launched blogs typically generate a very small share of total traffic from organic search, but the proportion builds over time. It’s not unusual to see clear upward inflection points in search traffic after the first six and 12 months a blog is active.

Social Networking: whether on an individual or corporate account basis, a social network grows over time as credibility is established. It’s difficult to build a large social following on Twitter, Facebook, LinkedIn, YouTube, Google+ or any other such site right out of the gate. But if the user is consistent, helpful, and engaging, it’s virtually inevitable that the following will grow over time. Like a blog, each social media account is an appreciating asset.

Content Marketing: while some content is designed for short-term needs, much of it has long-term value. Blog posts, videos posted to YouTube or Vimeo, presentations on SlideShare–all can continue to attract new viewers years after they are first created. Well-written white papers can also serve as effective long-term lead-generation assets.

Inbound marketing therefore not only makes marketing more efficient, but also more strategically valuable to the organization. It’s no longer just about spending money to generate leads this month or this quarter, but about developing content and connections that increase in value and continue to pay off over the long term.

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